Virtual Cards Market by Card, Product (B2B Virtual Cards, B2C Remote Payment Virtual Cards, C2B POS Virtual Cards), Issuer Type, Application

List of Tables

[187 Pages Report] The Virtual Cards Market size was estimated at USD 28.54 billion in 2023 and expected to reach USD 33.51 billion in 2024, at a CAGR 17.81% to reach USD 89.93 billion by 2030.

Virtual credit cards are digital counterparts to traditional physical cards, offering a modern solution for online transactions. These non-physical cards are equipped with all the necessary details, such as a card number, CVV, and expiration date, which exist solely in the digital form. This progression allows users to engage in eCommerce with increased safety and ease, mirroring the functionality of conventional credit or debit cards without the tangible presence. They are issued by financial institutions or payment service providers and are designed to facilitate secure online purchases and payments. Each virtual card has a distinctive card number, expiration date, and security code, similar to a physical card. However, these details are generated digitally and can be used immediately after issuance without the need for a physical card. Virtual cards have extensive applications across various sectors, including corporate expense management, online retail, subscription services, and B2B payments. End-users range from individual consumers seeking secure online shopping solutions to businesses looking to streamline their payment processes and improve financial oversight. Several factors are driving the growth of the virtual cards market, including growing concerns over fraudulent transactions and data breaches, the global move away from cash and toward digital payment methods, encouragement and support from regulatory bodies for secure and convenient payment methods, and innovations in fintech and the wider adoption of API integrations. However, the virtual cards market faces limitations, such as the availability of alternative payment methods and complexities in integrating virtual card systems with existing financial infrastructure. Collaboration with eCommerce platforms to offer integrated payment solutions, the development of industry-specific virtual card solutions for healthcare, education, and government sectors, and leveraging artificial intelligence and machine learning for enhanced fraud detection and personalized card offerings opens new avenues for the virtual cards market.

KEY MARKET STATISTICS
Base Year [2023]	USD 28.54 billion
Estimated Year [2024]	USD 33.51 billion
Forecast Year [2030]	USD 89.93 billion
CAGR (%)	17.81%

Card: Growing significance of virtual credit cards among consumers for online shopping & travel bookings

Virtual credit cards are linked to the user's credit line, offering the flexibility to borrow funds up to a certain limit set by the issuing institution. They are particularly preferred by users seeking to make online transactions without exposing their primary credit card details, minimizing the risk of fraud. Users engage in frequent online shopping, travel bookings, and subscription-based purchases, which are the benefits of virtual credit cards. Virtual debit cards are directly linked to the user's bank account, allowing transactions only up to the available account balance. They cater to individuals preferring to spend within their means and manage their finances without using credit cards. Ideal for day-to-day purchases, online subscriptions, and some forms of bill payments, virtual debit cards offer an element of controlled spending with the convenience of digital transactions.

Product: Increasing preference for B2C remote payment virtual cards among consumers

Business-to-business (B2B) virtual cards are designed for transactions between businesses. These cards are primarily used to pay suppliers and services, offering high control, efficiency, and security. They are preferred for their ability to facilitate seamless, automated reconciliation processes and enhance compliance with company spending policies. Business-to-consumer (B2C) remote payment virtual cards are targeted at consumers for online shopping, bill payments, or transactions where the physical card is not present. These virtual cards prioritize security and convenience and are often used for one-time transactions to protect against fraud. Consumer-to-business (C2B) point of sale (POS) virtual cards are designed for consumers to use in face-to-face retail environments, utilizing technology including near field communication (NFC) for tap-and-go payments from a mobile device. These cards prioritize speed and convenience for both consumers and retailers. Compared to B2C and C2B cards, B2B virtual cards involve higher transaction values and more rigorous auditing requirements. They tend to have more advanced features designed for complex business transactions. In contrast, B2C virtual cards focus more on consumer protection and ease of use than the business-oriented features of B2B cards or the immediate transaction capabilities at POS offered by C2B cards.

Issuer Type: Growing adoption of virtual cards from non-bank providers for modern user experience

Bank-issued virtual cards are digital card details issued by traditional banks, which are linked to a customer's existing bank account while providing a separate, digitally-generated card number for online transactions. This separation adds additional security and convenience for online shopping, subscriptions, and bill payments. Non-bank-issued virtual cards are provided by fintech companies, neo-banks, or digital payment platforms rather than traditional banking institutions. These virtual cards offer similar benefits to their bank-issued counterparts in terms of security and convenience and are more focused on innovative features, flexibility, and user experience.

Application: Expanding usage of virtual cards for consumer use to provide convenience in online transactions

Virtual cards for business use are designed to streamline expenses and financial operations, offering precise control over payments and significantly reducing the risk of fraud. Businesses can issue cards with specific spending limits for different departments or projects, enhancing budget management. Preferences in this segment are primarily driven by the need for security, flexibility, and efficiency. Travel and expense (T&E) cards are mainly used for managing business travel expenses, allowing companies to set predefined spending limits. Procurement cards facilitate the purchase of goods and services directly, bypassing traditional purchasing processes and enabling better discounts. Virtual cards for consumer use cater to individuals seeking a secure, convenient way to make online purchases, pay bills, or manage subscriptions. The primary preferences in this segment revolve around security against fraud, ease of use, and financial management. Consumer virtual cards often emphasize personal financial health tracking and control over spending. Online shopping cards are specifically designed for eCommerce transactions, offering one-time use or merchant-specific cards for added security. Subscription management cards allow consumers to generate unique card numbers for managing subscriptions, preventing unwanted renewals. When comparing business use and consumer use of virtual cards, a key differentiation lies in their primary applications, corporate finance management versus personal financial security and governance. Business use cards focus on enhancing spending controls, efficiency, and compliance within corporate frameworks. In contrast, consumer-use cards are tailored to protect individual consumers' financial information and provide convenience in online transactions.

Regional Insights

In the Americas, particularly in the United States and Canada, there is a significant surge in the use of virtual cards, driven by the demand for safer online transactions and streamlined payment processes. Consumers and businesses are adopting virtual cards to better control expenses and mitigate fraud. South America's virtual cards market is growing and is influenced by the expanding fintech sector and the push for financial inclusion. The European market is represented by a high adoption rate of virtual cards, mainly due to stringent regulations, including Payment Services Directive Two (PSD2), which promotes financial security and innovation. EU countries are witnessing a rise in virtual card usage for B2B payments, travel expenses, and eCommerce. The MEA region, although at an early stage of adoption, shows significant growth prospects for the virtual cards market due to countries in the region focusing on digital transformation in the banking sector and aiming to reduce cash dependency. In Africa, the penetration of smartphones and the Internet, along with initiatives to boost financial inclusion, are paving the way for the adoption of virtual cards. The APAC region is experiencing rapid development in the virtual cards market, with the massive adoption of smartphones, a burgeoning eCommerce industry, and supportive government policies for digital payments. Fintech innovation, particularly in countries such as South Korea, Japan, and Singapore, is a major driver, making APAC a highly competitive virtual cards market.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Virtual Cards Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Virtual Cards Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Virtual Cards Market, highlighting leading vendors and their innovative profiles. These include Adyen N.V., Alliance Bank Malaysia Berhad, American Express Company, AU Small Finance Bank Limited, Bank of America Corporation, Barclays PLC, BLOCK, INC., BNP Paribas S.A., Capital One Financial Corporation, Cardless, Inc., Citigroup Inc., Deutsche Bank AG, First Abu Dhabi Bank PJSC, Global Payments Inc., HSBC Holdings PLC, JCB Co., Ltd., JPMorgan Chase & Co., Lithic, Inc., Marqeta, Inc., Mastercard International Incorporated, N26 Bank AG, PayPal Holdings, Inc., Paysafe Limited, Revolut Ltd., Stripe, Inc., Synchrony Bank, U.S. Bancorp, UnionPay International Co., Ltd, Visa Inc., Wells Fargo & Company, WEX Inc., Wise PLC, and Zeta Help Inc.

Market Segmentation & Coverage

This research report categorizes the Virtual Cards Market to forecast the revenues and analyze trends in each of the following sub-markets:

Card
- Credit Card
- Debit Card

Product
- B2B Virtual Cards
- B2C Remote Payment Virtual Cards
- C2B POS Virtual Cards

Issuer Type
- Bank-issued Virtual Cards
- Non-bank Issued Virtual Cards

Application
- Business Use
- Consumer Use

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Virtual Cards Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Virtual Cards Market?

3. What are the technology trends and regulatory frameworks in the Virtual Cards Market?

4. What is the market share of the leading vendors in the Virtual Cards Market?

5. Which modes and strategic moves are suitable for entering the Virtual Cards Market?

Product Code: MRR-F927BA46223A

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing online transactions with the demand for secure payment methods
  - 5.1.1.2. Growing risk of fraudulent payments in physical cards encouraging inclination toward virtual cards
- 5.1.2. Restraints
  - 5.1.2.1. Availability of alternative payment methods
- 5.1.3. Opportunities
  - 5.1.3.1. Ongoing development of industry-specific virtual card solutions
  - 5.1.3.2. Leveraging artificial intelligence and machine learning for enhanced fraud detection and personalized card offerings
- 5.1.4. Challenges
  - 5.1.4.1. Complexities in integrating virtual card systems with existing financial infrastructure
5.2. Market Segmentation Analysis
- 5.2.1. Card: Growing significance of virtual credit cards among consumers for online shopping & travel bookings
- 5.2.2. Product: Increasing preference for B2C remote payment virtual cards among consumers
- 5.2.3. Issuer Type: Growing adoption of virtual cards from non-bank providers for modern user experience
- 5.2.4. Application: Expanding usage of virtual cards for consumer use to provide convenience in online transactions
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. Value Chain & Critical Path Analysis
5.5. Regulatory Framework Analysis

6. Virtual Cards Market, by Card

6.1. Introduction
6.2. Credit Card
6.3. Debit Card

7. Virtual Cards Market, by Product

7.1. Introduction
7.2. B2B Virtual Cards
7.3. B2C Remote Payment Virtual Cards
7.4. C2B POS Virtual Cards

8. Virtual Cards Market, by Issuer Type

8.1. Introduction
8.2. Bank-issued Virtual Cards
8.3. Non-bank Issued Virtual Cards

9. Virtual Cards Market, by Application

9.1. Introduction
9.2. Business Use
9.3. Consumer Use

10. Americas Virtual Cards Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Virtual Cards Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Virtual Cards Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. ConnexPay Unveils Innovative Variable-Rate Virtual Cards for Optimized Supplier Spending
- 13.3.2. Visa's Commercial Pay for Enhanced Corporate Expense Management
- 13.3.3. Adyen Partnered with BILL to Elevates Financial Operations for Small and Midsize Businesses (SMBs)
- 13.3.4. Mastercard's New Virtual Card Revolutionizes Medical Payments
- 13.3.5. Mastercard and IllicoCash Launch Revolutionary Virtual Cards for Secure and Instant Digital Payments, Boosting Financial Inclusion
- 13.3.6. Taulia's Virtual Cards and Mastercard Partnership Revolutionize Cash Flow and Payments Integration
- 13.3.7. Kiwi Secures USD 13 Million in Series A Funding to Advance Virtual Credit Card Platform
- 13.3.8. UnionPay International's Strategic Expansion of Virtual Card Services Globally
- 13.3.9. Strategic Partnership between Marqeta and Veem for Virtual Card Deployment
- 13.3.10. GEP and Mastercard partnered to Enhance ePayments in Procurement and Supply Chain Management
- 13.3.11. Alliance Bank Enhances Digital Payment Security with WOW Fintech Partnership for Visa Virtual Credit Cards
- 13.3.12. Dash Solutions Acquires KyckGlobal to Bolster Payment Technology Offerings
- 13.3.13. Cardless Secures USD 75 Million in Debt Financing to Revolutionize Virtual Payment Solutions

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio