- UK Finance responds to today's HM Treasury figures on COVID-19 support for businesses
- UK Finance appoints two new Managing Directors
- German FInance Minister wants to revamp BaFin oversight system over Wirecard issues
- 16 European banks set the stage for the future launch of the European Payments Initiative( EPI)
- Redwood Bank says there is COVID-19 cash confusion among business savers
- Standard Chartered Private Bank’s Sustainable Investing Review 2020 highlights the resilience of investor interest in sustainable investments amidst market disruptions due to COVID-19
- Juniper Research new study found that memberships of loyalty programmes with a digital element will increase from 37 billion in 2020 to 48 billion in 2023 globally expired
- Intuit Quickbooks highlights need for UK Government to provide continued support for FinTech sector expired
- Mastercard European research indicates a boost in purchasing from local outlets expired
- Paysafecash launches in Bulgaria to enable online cash purchases expired
- Moneyfacts says borrowers could turn to interest-only in 2020 expired
- Barclays Investment Bank announces three senior appointments to its Consumer Retail Group (CRG) expired
30th June 2020
Juniper Research indicates that the value of transactions processed by virtual cards will more than treble over the next 5 years
A new report from Juniper Research found that the value of transactions processed by virtual cards will more than treble over the next 5 years; increasing from an anticipated $1.6tr in 2020. Virtual cards are temporary, random digital card numbers that replace core payment details for specific online transactions.
THe report," Virtual Cards: Consumer & Business Adoption, Competitive Analysis & Market Size 2020-2025", found that B2B virtual cards will account for almost 80% of virtual card transactions by value, as that transaction value doubles over the next 5 years.
For 2020, the report forecasts a 4% decline in spend levels, largely due to the reduction in business travel and online travel booking. This is in contrast to an 11% increase in the number of transactions forecast for the same period. This usage increase is being driven by businesses needing to authorise spend remotely. Despite this, Juniper Research expects usage to remain low, with only 3% of businesses using virtual cards, as high processing charges for cards make suppliers reluctant to accept them.
Consumer virtual card products to date have been mostly small scale and not used to their full potential, according to the report. Although the Apple Card has made virtual card capabilities more prominent, Juniper Research believes its current positioning and feature restrictions will hold the market back; despite virtual cards processing over $1bn in 2025, less than 20% of people making online purchases will use them.
“Virtual cards often require additional software to use, which the average eCommerce user is not going to take the time to set up for mostly unseen benefits,” remarked research author James Moar. “The technology needs to become more automatic, and allow more features, if it is ever going to gain traction beyond a few specific products in the consumer market.”