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Fintech & Ecommerce

Virtual cards’ transaction value will more than triple by 2025: forecast

Jun 25, 2020

Virtual cards are random digital card numbers that replace core payment details for online transactions

digital cards

Virtual cards’ transaction value will more than triple by 2025: forecast. Source: shutterstock.com

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.

Virtual cards often require additional software to use, which the average eCommerce user is not going to take the time to set up for mostly unseen benefits. The technology needs to become more automatic and allow more features if it is ever going to gain traction beyond a few specific products in the consumer market
James Moar, research author 

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.

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