Virtual credit card transactions are projected to reach $6.8 trillion in 2026, up from $1.9 trillion in 2021, according to a Juniper Research report. In addition, the report predicts strong growth in B2B market acceptance of virtual credit cards.
What is a virtual credit card? Virtual credit cards are digital payment methods intended for online and card-not-present transactions. They use digitally generated 16-digit card numbers in place of the physical credit card numbers with which they are associated.
Here are 10 key insights on what is driving B2B adoption of virtual credit cards and how to leverage this increase to drive potential revenue and market share:
- Faster, More Efficient Payments. Rather than relying on paper checks, virtual credit cards make it faster and easier for B2B companies to receive payments and pay invoices.
- Reduced Fraud Risk. Virtual credit cards cannot be lost or stolen like physical cards. In addition, since they use digitally generated card numbers, virtual credit cards are more secure than traditional credit cards. Virtual credit cards also can have customized settings, allowing them to be used for a single transaction, have a set spending limit and/or expire on a certain date.
- Reduced Costs. Moving from paper checks to virtual credit cards can save $8–20 per payment. In addition, using virtual credit cards reduces chargebacks and other fees associated with fraud.
- Increased Convenience. Since buyers can use virtual credit cards without being physically present, the convenience for customers helps build customer loyalty for longer relationships.
- Streamlined Workflows. Because virtual credit card payments can be automatically reconciled with open accounts and invoices, they help streamline workflow and reduce the need for human input.
- Cash-Flow Management. Virtual credit cards can be integrated with accounts payable software tools, increasing accounting ease and simplifying expenditure tracking while reducing potential input errors.
- Controlled Spending. Virtual credit card limits are easy to manage, giving B2B companies increased control over staff spending while helping to ensure better budget management and more flexible working capital.
- Ease of Cancellation. Virtual credit cards can be canceled without the involvement of third parties, making them more secure and easier to manage than physical cards.
- Customer Retention. B2B buyers are adopting virtual credit cards faster than sellers, so accepting virtual credit cards helps retain customers who may otherwise seek a vendor that accommodates virtual credit cards.
- Increased Sales and Revenue. Accepting virtual credit card payments allows B2B companies to attract customers, increase sales, and drive revenue.
Want to get started accepting virtual credit card payments today?
PayNation can help! Whether you currently have a payments processor or are new to B2B payments, connect with PayNation today.
Extend Your Reach and Revenue with PayNation
- Streamline your payments.
- Gain a unified solution that simplifies the B2B payments process. PayNation removes the complexity of dealing with multiple vendors, getting your payments to you faster.
- Gain single-source success.
- Use a single source for your B2B payment platform, merchant account options and equipment. PayNation has a proven track record as a one-stop-shop for its customers.
- Increase payments security.
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- Enable omni-channel processing.
- Accept B2B payments from virtually anywhere. PayNation enables multiple customer interaction points, including e-commerce and in-store.
- Integrate with your ERP and accounting solutions.
- Integrate your B2B payment processing with your existing ERP and accounting solutions. PayNation helps you access information the way you want while improving the speed of receiving payments.
- Automate B2B payments processing.
- Reduce time spent on billing and reconciliation. PayNation delivers an all-in-one automated solution that improves efficiency by automating accounting processes.
