HSBC and Mastercard have launched a mobile virtual card solution in the UAE, giving corporate customers access to tokenised virtual cards through compatible digital wallets.
According to the official press release, the initiative enables businesses to add commercial virtual cards to digital wallets and use them for contactless payments covering business and travel expenses. HSBC is reported to be the first global bank to deploy mobile virtual cards in the UAE through Mastercard In Control for Mobile Payments, a component of Mastercard's broader virtual card platform infrastructure.
The solution generates secure virtual card numbers that can be enrolled in digital wallets through a registration process within Mastercard's app. Cards are issued via a virtual card portal, with digital issuance removing the need to wait for physical card delivery. Once added to a wallet, cards can be used for contactless transactions at point of sale terminals, as well as for online purchases and transactions made through mobile applications, across Mastercard's global acceptance network.
Tokenisation is central to how the product manages transaction security. Rather than exposing actual card numbers to merchants, the system uses encrypted tokens, reducing exposure to misuse and unauthorised charges. This approach applies across contactless point of sale payments, online transactions, and purchases through mobile applications.
Furthermore, corporate administrators can configure spend controls governing where, when, and how virtual cards may be used, supporting adherence to company budget policies. Users can monitor card limits, available balances, and transaction data updated in near real time through the app.
Market and strategic context
The UAE has experienced growing adoption of digital payment tools in the commercial sector, with businesses increasingly seeking mobile payment capabilities for corporate spending. The launch extends to corporate customers a level of convenience and flexibility traditionally linked to consumer digital wallets.
Finali Fernando, Managing Director and Regional Head of Products at HSBC, noted that the collaboration with Mastercard reflects the bank's focus on aligning its commercial product offering with the evolving payment preferences of corporate clients, bringing together the control mechanisms of virtual cards with the accessibility of mobile wallets.
Gina Petersen-Skyrme, Senior Vice President and Country Manager for UAE and Oman at Mastercard, said that integrating virtual cards with mobile devices is becoming increasingly relevant in the B2B segment as business payments shift towards digital channels. It was also indicated that the deployment is expected to support wider adoption of digital B2B payment tools across the UAE.
The launch is part of a broader industry trend in which banks and card networks are adapting commercial payment infrastructure to meet the expectations of a more digitally oriented corporate user base.
