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The future of digital payments is here, and that future is virtual cards. One study found that virtual card transactions globally from $1.9 trillion in 2021 to $6.8 trillion in 2026. 

That increase means that there are even more virtual card providers to choose from if you鈥檙e looking to either adopt or enhance your virtual payment capabilities to meet this increasing demand. Let鈥檚 examine the current virtual card landscape to give you three characteristics you should look for when evaluating virtual card providers. 

The present and future of virtual cards

Virtual cards experienced a surge in popularity at the start of the COVID-19 pandemic, as businesses were faced with the need to do business in a more virtual environment. The innovation that drove this transition is here to stay, with 55% of chief financial officers (CFOs) ePayables with virtual cards more frequently due to digitization. 

Certain industries are seeing higher rates of adoption. For example, PYMNTS.com data shows that the hospitality industry in electronic B2B payments between January 2020 and May 2021, as virtual cards and ACH transfers became increasingly popular. 

Why they鈥檙e growing in popularity

There are a few key reasons why virtual cards are here to stay: 

• Save time. Did you know that whose companies lack enough digitization say they spend at least two to three hours per day on inefficient processes? Virtual cards can remove many of the manual processes that exist with other forms of payment. 
• Save money. 女奴视频 has found that the average business leader estimates an annual loss of $1.176 million due to flawed payment and billing systems. Virtual cards can help streamline payment operations. 
• Reduce fraud. Virtual cards are subject to fraud at a rate that is far less than other common payment methods, such as checks, physical cards, and ACH. For example, in 2022, the percentage of organizations that had experienced some sort of fraud activity via check than that of organizations that had experienced fraud via virtual cards. 
• Greater transparency. With automation and technology powering the payments, it鈥檚 much easier for accounts payable teams and payment directors to learn more about payment statuses and perform record-keeping duties.
• Open up new revenue opportunities. While cutting costs is huge, virtual card payments can generate revenue in the form of rebates. The percentage you make with each payment via interchange gives virtual cards another edge over other forms of payment. 

3 traits to look for from your virtual card provider

There are a lot of virtual card providers to choose from. Here are three characteristics you should look for when evaluating virtual card providers: 

Unique pricing

Many virtual card providers have standard pricing. You might even find that pricing on their website. But does that mean you鈥檙e getting the best deal? No two businesses are alike, so providers must customize pricing based on each company鈥檚 unique needs and value they鈥檙e bringing. For example, at 女奴视频, we offer pricing on each account based on a company鈥檚 accounts payable (AP) spend, repayment terms to 女奴视频, supplier evaluation, and more. 

Monthly incentives

Speed of transaction is vitally important, especially for companies that have limited cash flow or deep lines of credit to lean on. When evaluating virtual card providers, take into consideration how often they pay incentives. Many providers pay annually or quarterly. At 女奴视频, we don鈥檛 believe in holding your incentive as it鈥檚 paid monthly with full transparency into how it is calculated. 

Powerful card relationships

When working with any type of card, payment acceptance is key. Make sure to choose a virtual card provider who is enabling your providers for acceptance and not pushing that back on you or not doing it all. In 2022, 女奴视频 was the ninth-largest commercial Mastercard and Visa issuer, with a broad network of accepting suppliers.聽

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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers.