What Has Been the Progress and Growth of the Virtual Card Market in Recent Years?
The virtual card market has seen considerable growth due to a variety of factors.
• The virtual card market has seen significant growth in recent years. It will grow from $474.23 billion in 2024 to $567.61 billion in 2025, reflecting a CAGR of 19.7%.
This growth is driven by increasing demand and investments, a rise in online transactions, greater smartphone production, the need for enhanced security features like tokenization in digital payment systems, and growing internet penetration.
What Can Be Expected from the Virtual Card Market Size?
The virtual card market is expected to maintain its strong growth trajectory in upcoming years.
• The virtual card market is projected to reach $1150.59 billion by 2029, growing at a CAGR of 19.3%.
This growth is driven by increasing online payment activity, the safety and cost-effectiveness of virtual cards, digital transformation, the rise of smartphones, and greater internet penetration. Key trends include advancements in online banking services, innovations in digital payments and currencies, 5G technology integration, and advanced virtual cards with biometrics.
What Are the Critical Driver Fuelling The Virtual Card Market's Growth?
The surge in online trades is set to boost the virtual card market's growth. Internet monetary exchanges, encompassing buying goods and services, fund transfers, and bill payments, are considered online transactions. The convenience, accessibility, quicker payment alternatives, broader client reach, and enhanced security have contributed significantly to the popularity of online transactions. Virtual cards bolster online transactions by offering additional safety with unique, temporary card numbers and streamlining payment procedures with seamless digital merging. For example, FedPayments Improvement, a product belonging to the US Federal Reserve Banks, highlighted that 62% of businesses had adopted digital wallets and mobile apps by May 2024, a significant rise from 47% in 2022. Hence, the virtual card market is driven by the increased online transactions.
How Is The Virtual Card Market segmented?
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
Subsegments:
1) By Business-To-Business (B2B) Virtual Cards: Corporate Expense Management Cards, Supplier Payments Cards, Employee Reimbursement Cards
2) By Business-To-Consumer (B2C) Remote Payment Virtual Cards: Online Shopping Virtual Cards, Digital Wallet Virtual Cards, Peer-To-Peer Payment Virtual Cards
3) By Business-To-Consumer (B2C) Point Of Sale (POS) Virtual Cards: In-Store Payment Virtual Cards, Mobile Payment Virtual Cards, Contactless Payment Virtual Cards
Pre-Book The Virtual Card Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Virtual Card Market?
Big players in the virtual card market are tapping into technological advancements like mobile virtual card applications, with the aim to improve user experience, enhance security measures, simplify financial transactions and ensure flawless integration with digital wallets and financial management tools. These mobile virtual card apps provide financial institutions the leeway to provide secure and lasting touchless payment solutions - something increasingly desired by businesses. For instance, Mastercard, a prominent US-based debit/credit card service provider, in April 2024, rolled out a Mastercard mobile virtual card application. This application enables the addition of virtual commercial cards to digital wallets quite effortlessly. The intricacies of this app are managed through Mastercard's own virtual card and tokenization platforms and boasts of heightened data protection and strict spending control features through an easy-to-navigate interface. Mastercard's smooth user experience with mobile virtual cards enables users to enjoy the 'tap-to-pay' convenience swiftly. This virtual card service is applicable across a variety of sectors can organisations like healthcare, insurance, fleet management, higher education, and corporate travel.
Who Are the Key Players In The Virtual Card Market?
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
What Is The Most Dominant Region In The Virtual Card Market?
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 regions covered in the virtual card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
