Virtual Cards Market

Market Snapshot

Market Synopsis:

The Global Virtual Cards Market was valued at USD 213.5 Billion in the year 2021 and is expected to reach a value of USD 603.2 Billion by the year 2028. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 18.9% over the forecast period.

A virtual card has a distinct, digitally produced 16-digit card number that is connected to a bank account. Businesses may manage card numbers and balances on any mobile or computer device with virtual cards, regardless of whether they send or receive payments. Additionally, virtual cards are essential for enhancing B2B payments. Business resources can now be accessed from anywhere at any time because of their greater adaptability and simplicity. Additionally, they provide a dependable and adaptable dealer payment solution, mainly for international transactions.

Virtual cards' capacity to increase security is one of their main advantages. Virtual cards cannot be lost or stolen, unlike actual cards. In addition, the storage and protection of card information online limit the exposure of personal information. After a transaction, consumers can also quickly amend or remove their payment details. As a result, virtual cards are now widely used by consumers and organizations as the best payment method for safe transactions, improving spending visibility and transparency. For investors, the market for virtual cards has enormous growth prospects. As a result, several venture capital firms worldwide are funding providers of reloadable and virtual payment cards. For instance, Privacy, which has now changed its name to Lithic, revealed in May that it had raised a sizable million in Series B funding, headed by Bessemer Venture Partners, to enhance the performance of its card-issuing platform.

Market Segmentation:

The Virtual Cards Market is segmented on the basis of Type and End-user. Based on Product, the market is segmented as B2B Virtual Cards, B2C Remote Payment Virtual Cards and B2C POS Virtual Cards. Based on End-User, the market is segmented into Consumer Use and Business Use.

Based on Type:

Based on type, the B2B Virtual Cards automates every step of a business-to-business transaction, removing the need for manual intervention, such as when completing supplier payments. As a result, they can lessen the workload placed on the accounts payable (AP) departments while also cutting costs associated with the overall payment process.

Based on End Use:

On the basis of End Use, the Business Use segment is that throughout the forecast period, the business usage segment is anticipated to outperform every other detail in terms of revenue production. Growing numbers of startups encouraging corporate credit cards or virtual credit or debit cards, which assist businesses in minimizing payment processing costs, improving cash management, and limiting vulnerability to check fraud, are significant drivers driving this segment's rise.

Asia Pacific is Projected to Grow at the Fastest CAGR during the Forecast Period

Asia Pacific is accounted to grow at the fastest CAGR during the forecast period. Over the forecast period, the Asia Pacific virtual cards market is anticipated to develop at the quickest CAGR. The main drivers of the APAC market growth include rapid urbanization, which increases the number of smartphone users, a considerable increase in virtual cards, particularly in developing nations like India, China, Malaysia, and Indonesia, and rising government efforts to promote digitization. For instance, the Digital India initiative was started by the Indian government to increase internet access, fortify online infrastructure, and empower India in the digital sphere. Some initiatives under this umbrella include Digital Saksharta Abhiyaan (DISHA), Centre for Excellence for Internet of Things (CoE-IT), DigiLocker, and Digitize India Platform. However, the market for virtual cards worldwide was dominated by North America. Throughout the forecast, it is anticipated to maintain its supremacy. The two powerful nations that dominate this market are the U.S. and Canada. Some major drivers of the industry's expansion are the significant presence of market leaders and the tendency of early technology adoption.

Competitive Landscape:

The key players in the Global Virtual Cards Market include- Abine Inc., American Express Company, Billtrust Inc., Cryptopay, CSI (Corporate Spending Innovations), Divipay Pty Ltd., Emburse LLC, Fraedom Holdings Limited, JP Morgan Chase, Marqeta Inc, Mastercard Incorporated, MineralTree Inc., Qonto Skrill, WEX Inc., Wirecard AG, and others.

Segmentation of the Global Virtual Cards Market: