Finance & Economics

Virtual card operations value to increase by 370% worldwide in 5 years

In particular, India will open up huge potential for suppliers

virtual card

Virtual card operations value to increase by 370% worldwide in five years. Source: pixabay.com

A new study by Juniper Research shows that the global value of virtual card transactions will reach $6.8 trillion in 2026, up from $1.9 trillion in 2021. Virtual cards, secure digital cards with randomly generated data, will see significant growth as they are actively used for B2B payments. The study found that businesses will value the simplicity of virtual cards over costly and slow methods that are still in use, such as checks, which remain popular in the US.

It predicts that beyond the dynamic B2B market, the added security of virtual cards will also appeal to the consumer market. To make capitale out of the power of virtual cards, vendors must identify which segment they are targeting and highlight the most important value-added features.

The report showed that B2B payments will continue to account for the majority of the value of virtual card transactions. It’s accounting for 71% of the total cost in 2026. Meanwhile B2B sales are less common, accounting for less than 1% of transaction volume in 2026, the average transaction cost is much higher in the B2B segment. This means that suppliers must pay particular attention to security and automation features to facilitate large payments on an effective level.

Also the study predicts that the Indian Subcontinent will become the fastest growing region in the next five years, with transaction volumes increasing more than tenfold. In particular, India will open up huge potential for suppliers.

This growth will be supported by the presence in the region of major vendors such as SBI and Oxigen Wallet. The widespread adoption of virtual cards in the booming mobile wallet sector will drive the use of e-commerce. In addition, the report indicated that RBI has been requiring users to control card use to prevent fraud from October 2020 as a primary driver of growth.

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