A new study from Juniper Research has revealed that virtual cards will be the fastest-growing B2B payment method by transaction value globally by 2028. It forecasts that virtual card transactions will grow from $3 trillion in 2024 to $11 trillion 2028.
Virtual cards are randomly generated, and often temporary, card numbers that are used to process payments. The top three fastest-growing payment channels between 2024 and 2028 are: Virtual Cards – 276%, Instant Payments – 208%, All Cards – 97%.
The report identified that the greater traceability of digital payments is driving this high growth; replacing cash and cheques for businesses. The increased traceability for automated payment processing and reconciliation reduces the complexity of processing accounts payable and receivable.
Virtual Cards Combatting Expenses Fraud
The ability to control elements of B2B virtual card transactions, such as placing limits on the value and frequency of transactions, will enable businesses to better combat fraud, such as expenses fraud.
Report author Michael Greenwood added: “To maximise fraud mitigation efforts, virtual card providers must offer management platforms that provide real-time visibility of these transactions; providing alerts of potentially fraudulent usage.”
B2B eCommerce Driving Card Use
The report also forecasts an increase in all B2B card use, with the value of B2B payments by this method growing from $11 trillion in 2024 to $22 trillion globally by 2028. The report predicts that the greater convenience of B2B eCommerce over traditional invoicing will be a significant driver of this growth. To capitalise, card providers must offer card holders rewards, such as cashback or reward points, for using cards at partnered B2B eCommerce sites.
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Download a free sample of the new report: Global B2B Payments Market 2024-2028
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
