Virtual cards are random digital card numbers that replace core payment details for online transactions
Juniper Research has found that the value of transactions processed by virtual cards will more than triple by 2025, rising from expected $1.6 trillion in 2020.
The data reveals that B2B virtual cards will account for nearly 80% of virtual card transactions by value.
As to 2020, the forecast predicts a 4% decline in spending levels, largely due to the reduction in business travel and online travel booking.
Nevertheless, the percentage of businesses using virtual cards is likely to remain low. Only 3% of businesses use them as high processing charges for cards make suppliers reluctant to accept them.
We’ve reported that Mastercard has launched its Track Business Payment Service, which enables greater control over transactions. Besides, it provides automated reconciliation for suppliers and application of all payment options approved by them.