B2B Virtual Card Transactions to Top $6T By 2026

Many card issuers have begun offering virtual cards as clients increasingly demand digital-first payment options.

And these cards are fast becoming a preferred method of payment in various markets around the globe, with recent research indicating that the worldwide value of virtual card transactions will jump from $1.9 trillion in 2021 to $6.8 trillion in 2026, underlining the method’s growing importance for B2B transactions.

The average company names more than 2,000 domestic payments each year, and organizations that depend on the gig economy — ride hailing apps, food delivery services — can use virtual cards to extend earned wage benefits to contract employees.

Virtual cards can also help companies track their workers’ business expenses and put limits on transactions to prevent overspending or misuse of funds. This tool can be particularly useful for B2B merchants, who need buyers to purchase large quantities of products for resale.

Virtual Card Use Gains Traction in Business Travel

As the travel sector begins to recover, business travelers have begun seeking new payment methods to cover the cost of trip expenses.

And while corporate cards remain the most popular method of settling travel costs, virtual cards have quickly begun to gain traction. In a recent global survey of 106 travel buyers, 37% said virtual cards were their primary financial source for expenses, while a little more than half the respondents said they expected to increase their virtual card use over the next five years.

Contactless payments, virtual expense solutions and greater insight and control over payments also were cited as common developments in today’s digital-first environment.

People in the survey also shared opinions on other payment and expense trends that they expect to see over the next five years. More than 50% predict a greater adoption of mobile payment methods, 35% expect to see a wider use of of expense management applications and 35% see biometric verification as technology that will stick around.

For more on the rise of virtual cards, download your copy of the latest edition of the B2B Digital Payments Tracker, a PYMNTS and American Express collaboration.