Virtual cards market is anticipated to grow at a CAGR of 20.0% during the forecast period (2023-2030). virtual card enables secure online transactions and reduces the risk of disclosing the actual credit/debit card details to the vendor. The increasing use of smartphones and internet connectivity is the key factor supporting the growth of the market globally. According to Alertify.EU, in 2021, the number of smartphone users in the world today is 3.8 Billion, which translates to 48.33% of the world’s population owning a smartphone. In total, the number of people who own a smart and feature phone is 4.88 Billion, making up 62.1% of the world’s population. According to the National Informatics Center (NIC), Internet and Mobile Association of India, the number of internet users in India is expected to reach 800 million by 2023. This increase in internet users has also led to an increase in the number of mobile wallet users in India, which is expected to reach 900 million by 2025.

Segmental Outlook 

The global virtual cards market is segmented on the product type and industry vertical. Based on the product type, the market is sub-segmented into B2B virtual card, B2C remote payment virtual cards, and B2C POS virtual cards. Based on the industry vertical, the market is sub-segmented into media and entertainment, hospitality, consumer goods, and others which includes energy and utilities, advertising, and education. Among the product types, the B2C remote payment virtual cards sub-segment is anticipated to hold a prominent market share owing to the rise in online payments. These cards are used for one-time payment transactions and have a limited validity period. The customer can generate the card number, expiry date, and security code (CVV) from the bank's website or mobile application.

B2B Virtual Card Sub-Segment is Anticipated to Hold a Considerable Share of the Global Virtual Cards Market 

Among the product types, the B2B virtual card sub-segment is expected to hold a considerable share of the global virtual cards market. The segmental growth is attributed to the increased import and export of goods and services worldwide. Owing to this major companies are integrating virtual cards into their B2B payment processes to improve cash flow, increase security, and facilitate Accounts Payable (AP) automation. For instance, American Express recently launched one such ready-to-fold-in AP solution, which is designed to work with the accounting systems that businesses already have in place. The tool enables AP staff to avoid visiting their offices in person and instead remotely issue payments via automated clearing house (ACH) checks and virtual cards.

Regional Outlook

The global virtual cards market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Europe is anticipated to hold a prominent share of the market across the globe, owing to the robust growth in revenue over the forecast period, owing to the rising popularity of online payments due to the rapid growth of the e-commerce industry during COVID-19

Global Virtual Cards Market Growth by Region 2023-2030

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Virtual Cards Market 

Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the Urbanization, number of smartphone users, and the significant rise in virtual cards, particularly in developing countries including India, China, Malaysia, and Indonesia, and increasing government activities to promote digitalization. According to  Asian Bankers Worldwide, Japan has a 70.6% penetration of digital wallets, which is expected to increase to 98.6% by 2025. For instance, the Government of India launched a Digital India campaign to improve internet connectivity, strengthen online infrastructure, and make India digitally empowered in the technological field. Digital Saksharta Abhiyaan (DISHA), Centre for Excellence for Internet of Things (CoE-IT), Digi-Locker, and Digitize India Platform are some of the programs under this initiative.

Market Players Outlook

The major companies serving the market include Abine Inc., Aci Worldwide Inc., Adyen, Bento Technologies Inc., Billtrust Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, In July 2023, Mastercard partnered with Billtrust, a B2B order-to-cash software and digital payments market leader, to deliver its latest commercial solution. Requiring minimal implementation effort, Mastercard Receivables Manager enables acquirers to quickly get to market and empowers suppliers to receive virtual card payments with simplicity and ease, thereby optimizing acceptance at scale and increasing card spending opportunities for businesses

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global virtual cards market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.