A virtual card is an electronic card which can be created using the bank’s net banking facility, by providing one’s credit or debit card details. No charges have to be paid for the same. As the name suggests, they need not be physically issued by card providers. Each virtual card comes with its own card number, CVV number and validity details. It can be used for online transactions just like regular credit/debit cards. Users can just use their smartphone to make a transaction using their virtual cards.
Virtual cards offers added security benefits to their customers as compared to physical cards, since everything is done online so it only involves a few taps for the user to add money, do transactions, paying suppliers/buyers, all within a few seconds. In addition, the virtual cards contains a 16 digit number which is specifically designed for single-use only in between the payer and the payee. Moreover, virtual cards cost lesser than physical cards and they also allow customers to set their own spending limits. Therefore, these are some of the factors propelling the virtual cards market growth. However, a large section of customers are not satisfied with virtual cards and still want a physical card for making transaction. Moreover, there are major concerns over frauds if the smartphone is stolen. Therefore, these are some of the major factors limiting the growth of virtual cards market. On the contrary, rapid innovation in the payments technology and growing concerns over no touch payments is expected to provide lucrative growth opportunities for the virtual cards market in the coming years.
The virtual cards market is segmented on the basis of product type, industry verticals, end user, and region. By product type, it is segmented into B2B Virtual Card, B2C Remote Payment Virtual Cards, and B2C POS Virtual Cards. The B2B virtual card segment is further sub segmented into Debit Card and Credit Card. By industry verticals, it is bifurcated into Media and Entertainment, Hospitality, Consumer Goods, Energy and Utilities, Advertising, Education, and Others. Based on end user, it is segregated into Businesses and Individuals. By region, it is analyzed across Asia-Pacific, Europe, North America, and LAMEA.
The report analyzes the profiles of key players operating in the virtual cards market such as American Express, BTRS Holdings Inc. dba Billtrust, Bento Technologies Inc., Citigroup Inc., Capital One, DBS Bank Ltd., ePayService, HSBC Group, JPMorgan Chase & Co., Mastercard, Marqeta, Inc., Revolut Ltd, Stripe, Inc., State Bank of India, Standard Chartered Bank, Wise Payments Limited, WEX Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the virtual cards industry.
Virtual cards offers added security benefits to their customers as compared to physical cards, since everything is done online so it only involves a few taps for the user to add money, do transactions, paying suppliers/buyers, all within a few seconds. In addition, the virtual cards contains a 16 digit number which is specifically designed for single-use only in between the payer and the payee. Moreover, virtual cards cost lesser than physical cards and they also allow customers to set their own spending limits. Therefore, these are some of the factors propelling the virtual cards market growth. However, a large section of customers are not satisfied with virtual cards and still want a physical card for making transaction. Moreover, there are major concerns over frauds if the smartphone is stolen. Therefore, these are some of the major factors limiting the growth of virtual cards market. On the contrary, rapid innovation in the payments technology and growing concerns over no touch payments is expected to provide lucrative growth opportunities for the virtual cards market in the coming years.
The virtual cards market is segmented on the basis of product type, industry verticals, end user, and region. By product type, it is segmented into B2B Virtual Card, B2C Remote Payment Virtual Cards, and B2C POS Virtual Cards. The B2B virtual card segment is further sub segmented into Debit Card and Credit Card. By industry verticals, it is bifurcated into Media and Entertainment, Hospitality, Consumer Goods, Energy and Utilities, Advertising, Education, and Others. Based on end user, it is segregated into Businesses and Individuals. By region, it is analyzed across Asia-Pacific, Europe, North America, and LAMEA.
The report analyzes the profiles of key players operating in the virtual cards market such as American Express, BTRS Holdings Inc. dba Billtrust, Bento Technologies Inc., Citigroup Inc., Capital One, DBS Bank Ltd., ePayService, HSBC Group, JPMorgan Chase & Co., Mastercard, Marqeta, Inc., Revolut Ltd, Stripe, Inc., State Bank of India, Standard Chartered Bank, Wise Payments Limited, WEX Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the virtual cards industry.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the virtual cards market analysis from 2021 to 2031 to identify the prevailing virtual cards market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the virtual cards market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global virtual cards market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By End User
- Businesses
- Individuals
By Product Type
- B2B Virtual Card
- B2C Remote Payment Virtual Cards
- B2C POS Virtual Cards
By Industry Vertical
- Media and Entertainment
- Hospitality
- Consumer Goods
- Energy and Utilities
- Advertising
- Education
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- South Korea
- Rest of Asia-Pacific
- China
- India
- Japan
- Australia
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Bento Technologies Inc.
- American Express
- Billtrust (BTRS Holdings Inc.)
- Citigroup Inc.
- Capital One
- DBS Bank Ltd
- ePayService
- HSBC
- JPMorgan Chase & Co.
- Mastercard
- Marqeta, Inc.
- Revolut Ltd
- Stripe, Inc.
- State Bank of India
- Standard Chartered Bank
- Wise Payments Limited
- WEX Inc.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: VIRTUAL CARDS MARKET, BY PRODUCT TYPE
CHAPTER 5: VIRTUAL CARDS MARKET, BY INDUSTRY VERTICAL
CHAPTER 6: VIRTUAL CARDS MARKET, BY END USER
CHAPTER 7: VIRTUAL CARDS MARKET, BY REGION
CHAPTER 8: COMPANY LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Virtual Cards Market," the virtual cards market size was valued at $281.22 billion in 2021, and is estimated to reach $1,893.08 billion by 2031, growing at a CAGR of 21.3% from 2022 to 2031.A recent RFI Group study titled Capitalizing on the potential in virtual cards and conducted on behalf of Visa, found that virtual cards are becoming an important option for businesses across the globe. In Australia, 54% of businesses that already use purchasing cards find virtual cards appealing. This figure is even higher at 60% for businesses who do not currently use purchasing cards. In other regions, namely Canada and the U.S., where corporates already use purchasing cards, the appeal for virtual cards goes up by 74% and 93% of businesses respectively indicated they find virtual cards an attractive option. Moreover, this growing awareness and interest for virtual card use amongst corporates represents lucrative opportunity for the market players in the upcoming years. In addition, by focusing on the appealing benefits of virtual cards, issuers can position themselves to improve relationships with existing customers and future B2B clients.
On the basis of industry verticals, the media and entertainment segment is the highest growing segment. This is attributed to the fact that sports organization across the globe have adopted virtual card payment options for reducing major problems for owners, which include counting of tickets, pricing & change requirement, reconciliation, transaction times, and improving security as well as reducing potential theft. In addition, virtual cards offer secure payment methods which are encrypted and secured by an SSL certificate that protects both user and transaction data.
Based on region, North America attained the highest virtual cards market growth in 2021. This is attributed to the fact that consumers in North America are choosing to shop with businesses that offer virtual credit cards options at the point of sale. Furthermore, millennial’s preferences towards usage of cash is decreasing and over half of the population are likely to avoid shopping at stores that do not offer to pay through affirm virtual cards.
During the pandemic, more consumers became comfortable purchasing items online or with their smart phones to avoid risky in-person interactions. Moreover, banks and financial institutions adopted digitalization and started giving virtual gift cards to their customers instead of physical cards. In addition, the risk of spread of virus through touching of surface such as swipe machines and point of sale (PoS) increased the demand for virtual cards. Therefore, the COVID-19 pandemic had a positive impact on the virtual cards market trends.
Key Findings of the Study
- By product type, the B2B virtual card segment led the virtual cards market in terms of revenue in 2021.
- By end user, the businesses segment accounted for the highest virtual cards market share in 2021.
- By region, North America generated the highest revenue in 2021.
- The key players profiled in the virtual cards market analysis are American Express, BTRS Holdings Inc. dba Billtrust, Bento Technologies Inc., Citigroup Inc., Capital One, DBS Bank Ltd., ePayService, HSBC Group, JPMorgan Chase & Co., Mastercard, Marqeta, Inc., Revolut Ltd, Stripe, Inc., State Bank of India, Standard Chartered Bank, Wise Payments Limited, WEX Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the virtual cards industry.
Companies Mentioned
- Bento Technologies Inc.
- American Express
- Billtrust (Btrs Holdings Inc.)
- Citigroup Inc.
- Capital One
- Dbs Bank Ltd
- Epayservice
- Hsbc
- Jpmorgan Chase & Co.
- Mastercard
- Marqeta, Inc.
- Revolut Ltd
- Stripe, Inc.
- State Bank of India
- Standard Chartered Bank
- Wise Payments Limited
- Wex Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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