The virtual card can be a valuable payment solution for the enterprise thanks to the technology's security features and mobility. Yet adoption remains limited, largely thanks to corporates' ongoing use of more traditional payment methods like ACH or even physical cards. Yet this week's commercial card innovation tracker finds B2B financial service providers embracing the virtual card for a range of use cases, including fleet, corporate travel, and vendor payments.
Comdata Digitizes Legacy Fleet Payment Tool
Embracing the virtual card opportunity is Comdata, a FLEETCOR company, which announced last week the rollout of Virtual Comchek. The solution is a one-time use virtual card that connects fleet drivers to on-demand payment capabilities, and operates as a v-card version of Comdata's legacy paper-based Comchek payment solution. Fleet managers can send a single-use virtual card to drivers' mobile devices to make payments on the road, with Comdata highlighting the value of digitizing fleet payments.
"Even though our paper Comchek product has been a staple of the industry for almost 50 years, we challenged ourselves to digitize the experience while bringing our customers lower operational costs, more security and convenience,” said Comdata Senior Vice President of Product and Innovation Justin King in a statement. “The Virtual Comchek was created to take those benefits a step further for our customers, giving both drivers and fleets greater control, visibility, and access to funds when it’s needed most.”
Aussie Alt-Lender Execs Team Up For Corporate Card
Three executives from alternative lending companies in Australia are teaming up to roll out a new corporate card solution aimed at supporting small and medium-sized businesses (SMBs) through pandemic-fueled volatility. In an announcement, Cape, a FinTech launched by former executives at Funding Options, 11:FS and Funding Circle, revealed its market debut and plans to launch a "recession fighting" credit card for businesses in need of buy now, pay later (BNPL) options.
In a statement, Cape CEO Ryan Edwards-Pritchard said businesses are struggling to access traditional credit and have been "locked out of business lending." The commercial card can connect them to working capital quickly; Cape plans to launch the card in 2021, reports said.
Onyx Rolls Out Virtual Card Tech For Hospitality Sector
Also embracing the virtual card is Onyx CenterSource, which recently announced the launch of a virtual card solution designed for B2B payments in the hospitality sector. Reports in Hotel Business recently noted that the payments technology company developed the v-card product for hospitality and travel clients in need of solutions in a remote-work setting.
"Of course, for those clients still receiving payments via paper checks, those payments may be delayed or more difficult to process if teams are not in their usual office environment," said Onyx SVP of Product and Marketing Brian Clubb in a statement. "Virtual credit card payments were always aligned with our strategy and solution suite, and combined with the challenges our clients faced from COVID-19, we heard the demand and wanted to answer it."
U.S. Bank, TravelBank Partner On V-Cards For Expense Management
In yet another use-case for the virtual card, U.S. Bank and TravelBank have announced a partnership to integrate U.S. Bank's Instant Card within TravelBank's travel and expense management platform. Like Comdata's solution for fleet drivers, the Instant Card integration will allow businesses to sent a virtual card on-demand to employees or contractors while traveling or in the field to make payments they need. The funds are available immediately upon receiving the v-card, the companies noted, and spend data is automatically captured and integrated into the TravelBank portal.
In a statement, TravelBank Co-Founder and CEO Duke Chung said that rising adoption of mobile payments will be an important part of business recovery.
"The mainstream adoption of mobile wallets is going to be key to bringing back businesses across the country," he said. "In a post-pandemic world, companies need to prepare to provide a contactless commerce experience where employees can seamlessly and efficiently make business purchases."