A virtual card is a financial technology service that is physically non-existent and is required for online payment. It produces the card number, expiration date, and card verification code (CVV) in an electronic environment and gives them to the client. It is possible to continue the experience more freely and safely by keeping the actual cards away from the threats of the digital environment, thanks to virtual card online shopping. Virtual cards are available in practically all institutions that accept credit cards through digital media (online banking). It is frequently provided for free because there are no printing or delivery charges compared to an actual card. In addition, some banking institutions allow customers to establish an unlimited number of virtual cards. As a result, customers may increase payment security by creating a virtual card for each purchase.
Virtual cards, on the other hand, are seen as a resource by most financial institutions, which impose specific restrictions and requirements. Furthermore, tokenized data is technically irreversible, unlike encryption, unless the original key used to produce the token is available. If a hacker gains access to the system, the stored number can-not be altered into any value. As a result, virtual cards are far more secure than standard paper checks when preventing B2B payment fraud. Getting a virtual card is not necessary for having a credit card. Some banks allow the creation of virtual cards attached to a drawing account. People increased their acceptance of e-payment during the COVID-19 pandemic for security concerns and to minimize the transmission of infection because contactless payment is simple and transparent.
North America holds the largest share for the Virtual Cards market in 2021. The rise in the use of digital payment systems, availability of major players, and increased use of smartphones, as well as technically advanced deployment such as 4G and 5G, are some of the important factors responsible for the growth of the Virtual Cards market in this region. Virtual card companies like JP Morgan Chase, Billtrust, Inc., and Stripe have a strong presence in this region. The presence of such major virtual card providers boosts the region’s expansion of the Virtual Cards market.
Some of the key players in the Global Virtual Cards Market include- Abine Inc., American Express Company, Billtrust Inc., Cryptopay, CSI (Corporate Spending Innovations), Divipay Pty Ltd., Emburse LLC, Fraedom Holdings Limited, JP Morgan Chase, Marqeta Inc, Mastercard Incorporated, MineralTree Inc., Qonto Skrill, WEX Inc., Wirecard AG and others.