Virtual card transaction values to increase by 370 percent in five years, Juniper Research reveals

Monday 28 June 2021 13:51 CET | News

A new study by Juniper Research has found that the global value of virtual card transactions will reach USD 6.8 trillion in 2026, from USD 1.9 trillion in 2021.

According to the press release, virtual cards, secure digital cards with randomly generated details, will show strong growth as they are increasingly used for B2B payments. The new research, Virtual Cards: B2B and B2C Applications, Competitive Analysis & Market Forecasts 2021-2026, predicts that outside of the dynamic B2B market, the added security from virtual cards will also appeal to the consumer market. 

To capitalise on virtual card opportunities, vendors must identify which segment they are targeting and emphasise the most important value-added features, such as ERP integrations or consumer brand partnerships.Moreover, the report found that B2B payments will continue to account for the majority of virtual cards transaction value, totalling 71% of the total value in 2026. 

While B2B sales occur less frequently, yielding under 1% of transaction volume in 2026, average transaction values are much higher in the B2B segment. This means that vendors must ensure that security features and automation are emphasised to facilitate large payments as efficiently as possible. 

Additionally, the research forecasts that the Indian Subcontinent will be the fastest-growing region over the next five years, with transaction volumes increasing more than tenfold. India, in particular, will present enormous potential for vendors. This growth will be underpinned by the presence of major vendors in the region, such as SBI and Oxigen Wallet. The report also identified the requirement by the RBI from October 2020 for users to have control over card use to prevent fraud as a major growth driver.

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Keywords: Juniper Research, study, research, virtual card, B2B payments
Categories: Payments & Commerce
Countries: World
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