The modern payment industry keeps evolving at a rapid pace. As more businesses go digital amidst the pandemic, the concept of virtual credit card payments is becoming the go-to business solution for businesses – both offline as well as online.
There has been an overall increase of around 85 million active virtual credit card payment users. The global economy has managed to improve during the second half of 2021, and most businesses are now in a better position to handle the pandemic now than they were during the first wave of the COVID-19 pandemic. For the payments industry, offering support to businesses as they plan their way beyond the COVID-19 pandemic will be an overarching narrative of 2022.
The Rise of Virtual Credit Card Payments 2022
Throughout the pandemic, the dependence of consumers on digital payment technology has made modern transaction methods quite an expectation rather than just a feature. It is estimated that over 80 percent of consumers using leading digital wallet options remain satisfied with those services. The methodology is known to extend past the sales of traditional B2C or Business to Consumer methods. However, nowadays, B2B or Business to Business organizations are becoming increasingly dependent on alternative methods of payments for sending and receiving funds to buyers and vendors.
The main component of the digital payment industry that is evolving rapidly is the concept of virtual cards. Businesses all around are beginning to understand the efficiency and importance of virtual cards for AP (Accounts Payable) and expense management operations.
Top Benefits of Virtual Credit Cards
Typically, a virtual credit card payment through a dedicated credit card will help you in performing all the core functions of a traditional card payment solution – only better.
Everything is carried out online. Therefore, it will include some basic steps towards adding money, performing transactions, paying buyers or suppliers, and so on. Some of the core benefits of ensuring virtual credit card payment solutions for businesses in 2022 are:
Improved Security
With the wide range of security challenges for traditional payment cards, physical credit cards have become quite a common target for fraud.
The main reason why virtual cards are considered more safe and secure is that you are capable of pre-setting a particular spending limit you would like to have at any time. There is also the option of terminating the account anytime you would like, with just a single click in case of any data breach. During every transaction, there is a one-time bank number to use for performing the payment.
In contrast to the ACH payments and checks, it can significantly help in improving the data security of the respective bank account details while protecting your privacy – even in the case of transactions. With the help of virtual cards, it is impossible to execute account theft on e-commerce.
E-commerce Convenience
Unlike conventional banking institutions with fixed working hours, virtual financial institutions work round-the-clock. Therefore, they can be on standby for international businesses whenever you require. The best part is that there is no need to waste time going to a physical branch. All you are required to do is make a few taps on your mobile device, and you can easily implement online transactions to make your business more efficient.
With virtual credit card payments, you can forget manual mistakes or paperwork. You can embrace streamlined accounts for ensuring that you are covered throughout. The single-issued virtual credit card enables the Accounts Payable department to focus on core financial matters and focus on your business.
Reduced Cost
A number of virtual banks or institutions deliver access to reduced fees needed for customers. With every amount that you spend, you can look forward to earning cash rebates for paying your buyers or suppliers, and virtual credit cards come at low or no cost.
As everything is executed online, the overall operating costs can be reduced with the help of virtual transactions. In turn, finance service providers will be charging less to customers.
Revolutionizing the B2B Digital Payment Space
Electronic payments are on the rise. It is estimated that more than 80 percent of B2B payments will go entirely digital by 2025. Accounts Receivable and Accounts Payable departments are increasingly shifting to digitization over complicated manual processes for completing vendor payments and improving overall cash flow. The innovative set of tools is offering B2B organizations improved consistency and transparency into how they are spending money or obtaining the highest revenues.
Virtual card payment is one such innovative application for revolutionizing the modern payment industry. The virtual credit card payment industry is expected to reach a value of around $6.8 trillion by 2026, a major jump from the value of $1.9 trillion in 2021. It is becoming increasingly popular amongst B2B firms relying on buyers to buy bulk items for the purpose of resale. This is because virtual credit card payment helps employers in tracking the business expenses of workers while setting spending limits for preventing fun exploitation or overspending.
To top it all, modern gig economies like food delivery or ride-sharing services can make use of virtual cards for appointing benefits of earned wages to contract-based workers.
Conclusion
The pandemic has accelerated the pace of digital payments while focusing on the shortcomings of outdated, complicated manual processes for a number of organizations around the world. Due to this, an increasing number of B2B companies are tapping into newer technologies like virtual credit card payments for improving the overall operations and security mechanisms for high-value transactions.
The digital shift during the ongoing pandemic has resulted in permanent behavioral changes amongst businesses and customers alike. Due to this, e-commerce transactions have accelerated while being anticipated to keep moving forward in the upwards trajectory – especially for B2B organizations.
