Juniper Research predicts the rising integration of virtual cards to existing digital wallets services, such as Apple Pay and Google Pay will drive accelerated transaction growth
A new study from Juniper Research estimated that the number of virtual card transactions will exceed 121 billion globally by 2027. It will increase by over 340% from 28 billion in 2022.
The research also predicts the rising integration of virtual cards to existing digital wallets services, such as Apple Pay and Google Pay. Such an integration will drive accelerated growth by exploiting existing substantial user bases of major digital wallets.
Virtual cards will be increasingly used for mobile payments
As the adoption of virtual cards in contactless payments accelerates, Juniper Research predicts that the global number of virtual card transactions through mobile payment methods will grow tenfold within five years (from 5 billion in 2022 to 53 billion in 2027).
Furthermore, the study identified the inclusion of virtual cards as a key market driver for contactless payments. Namely, it will stimulate consumer adoption in rapidly developing economies, such as India. Virtual cards allow to meet market demand for convenient payment options during checkout amongst unbanked populations.
Nevertheless, virtual cards face tough competition from other payment methods, such as traditional contactless cards and QR codes. At the same time, the report anticipates that competition won’t hinder the adoption. In particular, the secure nature of virtual cards will drive demand in an increasingly security-conscious market.
US will represent largest market for business virtual card use
Last but not least, the report forecasts that the US will represent 72% of global B2B virtual card revenue y 2027, accounting for $71 billion. The growing use of virtual cards in the healthcare sector should be key to driving this growth. The research notes that virtual cards are increasingly used to pay for medical supplies and equipment due to the speed of transactions and inherent security of this payment method.
Therefore, it encourages virtual card vendors to offer integration with accounts-payable software, such as MineralTree and WEX, to streamline the payment process undertaken by major US healthcare providers.