The virtual card market size has grown rapidly in recent years, projected to increase from $397.54 billion in 2023 to $474.23 billion in 2024, at a compound annual growth rate (CAGR) of 19.3%. The growth during the historic period can be attributed to increased demand and investments, a surge in online transactions, a rise in smartphone production, the growing need for an extra layer of protection such as tokenization in digital payment gateway systems, and enhanced internet penetration. In the forecast period, the virtual card market size is expected to grow to $964.67 billion in 2028, at a CAGR of 19.4%. This growth is driven by an increase in online payment activities, cost-effective and safe payment options, digital transformation, rising smartphone adoption, and an increase in internet penetration. Major trends anticipated during this period include technological advancements in online banking services, innovations in online payments and digital currencies, developments in 5G technology, and advanced virtual cards with biometrics.
Major Driver In The Virtual Card Market
The increase in online transactions is expected to significantly propel the growth of the virtual card market in the coming years. Online transactions, which include monetary exchanges conducted over the Internet for purchasing goods and services, transferring funds, and paying bills, have seen considerable growth driven by factors such as convenience, accessibility, faster payment options, and enhanced security measures. Virtual cards enhance online transactions by offering improved security through unique, temporary card numbers and streamlining payment processes with seamless digital integration. For example, in May 2024, FedPayments Improvement, a US-based initiative of Federal Reserve Banks, reported that the adoption of digital wallets and mobile apps by businesses rose to 62% in 2023, a notable increase from 47% in 2022. Thus, the growth in online transactions is projected to significantly influence the virtual card market size from 2023 to 2028.
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Virtual Card Market Competitive Landscape
Major companies operating in the virtual card market are JPMorgan Chase & Co., Citigroup Inc., American Express, Visa Inc., Mastercard, Standard Chartered Bank, DBS Bank Ltd, Stripe Inc., Adyen AS, Huntington Bancshares, WEX Inc., Wise Payments Limited, Revolut Ltd, Marqeta Inc., Emburse LLC, Billtrust Inc., Qonto, Skrill Ltd, MineralTree Inc., Cryptopay Ltd, Bento Technologies Inc., Weel Holdings Pty Ltd
Key Virtual Card Market Trend
Major companies in the virtual card market are offering innovative technological solutions, including mobile virtual card apps, to enhance user convenience, improve security features, streamline financial transactions, and ensure seamless integration with digital wallets and financial management tools. The mobile virtual card apps aim to provide financial institutions with greater flexibility in delivering secure and sustainable contactless payment solutions that businesses increasingly seek. For instance, in April 2024, Mastercard, a US-based payment card services company, launched its mobile virtual card app, allowing virtual commercial cards to be effortlessly added to digital wallets. The app leverages Mastercard's virtual card and tokenization platforms, providing advanced data security and strong spending controls through a user-friendly interface. It ensures a seamless experience with Mastercard mobile virtual cards, allowing users to enjoy quick tap-to-pay convenience. These virtual cards cater to various organizations and industries, including healthcare, insurance, fleet management, higher education, and corporate travel.
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Global Virtual Card Market Segmentation
The virtual card market covered in this report is segmented –
1) By Type: Business-To-Business (B2B) Virtual Cards, Business-To-Consumer (B2C) Remote Payment Virtual Cards, Business-To-Consumer (B2C) Point Of Sale (POS) Virtual Cards
2) By Card Type: Credit Card, Debit Card
3) By Application: Consumer Use, Business Use, Other Applications
4) By End User: Businesses, Individuals
By Geography:The regions covered in the virtual card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the virtual card market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Virtual Card Global Market Report 2024 furnishes information about the global virtual card market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
