Virtual card transaction volumes to surpass 121 billion globally
A new study from Juniper Research has found the number of virtual card transactions will exceed 121 billion globally by 2027; increasing from 28 billion in 2022. This represents growth of 340%. It predicts rising integration of virtual cards to existing digital wallets services, such as Apple Pay and Google Pay, will drive this growth by exploiting existing substantial user bases of these digital wallets.
A virtual card is a randomly generated card number linked to a payment account.
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Virtual cards key to providing secure & convenient mobile payments
The research found the global number of virtual card transactions through mobile payment methods will grow from 5 billion in 2022 to 53 billion in 2027, as adoption of virtual cards in contactless payments accelerates. It identified the inclusion of virtual cards as a key market driver of consumer adoption of contactless payments in rapidly developing economies, such as India. This allows them to meet market demand for convenient payment options during checkout amongst unbanked populations.
Virtual cards face tough competition from other payment methods, such as traditional contactless cards and QR codes. However, the report anticipates that the secure nature of virtual cards will drive demand in an increasingly security-conscious market.
US to represent largest market for business virtual card transactions
Additionally, the report forecasts that the US will account for $71bn in B2B virtual card revenue by 2027; representing 72% of global revenue. It predicts that the growing use of virtual cards in the healthcare sector will be key to driving this growth, with virtual cards increasingly used to pay for supplies and equipment due to the speed of transactions and inherent security of this payment method.
In response, 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.