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Juniper Research: Virtual card transactions to reach $6.8 trillion in 2026

By Joy Dumasia

June 28, 2021

  • America
  • Juniper
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Juniper Research has found that the global value of virtual card transactions will reach $6.8 trillion in 2026, from $1.9 trillion in 2021.

Virtual cards, secure digital cards with randomly generated details, will show strong growth as they are increasingly used for B2B payments.

The research identified that businesses would value the simplicity of virtual cards compared to the expensive and slow methods still being used, such as cheque payments, which remain popular in the US.

The research covers essential market segments, including:

  • B2B Virtual Cards
  • Consumer POS Virtual Cards
  • Consumer Remote Payment Virtual Cards

The new research, Virtual Cards: B2B and B2C Applications, Competitive Analysis & Market Forecasts 2021-2026, predicts that outside of the dynamic B2B market, the added security from virtual cards will also appeal to the consumer market. To capitalise on virtual card opportunities, vendors must identify which segment they target and emphasise essential value-added features, such as ERP integrations or consumer brand partnerships.

The research provides a detailed assessment of how new virtual cards will popularise across different verticals and how business models in the space need to evolve. The drivers and constraints affecting the market are discussed, with detailed strategic recommendations on maximising the opportunities within virtual cards for vendors.

The research includes a 17-vendor Juniper Research Leader board with extensive profiles for each vendor and forecasts for virtual card transaction volume, value, and revenue through to 2026.

The report found that B2B payments will continue to account for most virtual card transaction value, amounting to 71% of the total value in 2026. While B2B sales occur less frequently, yielding under 1% of transaction volume in 2026, average transaction values are much higher in the B2B segment. As a result, the vendors must ensure that security features and automation are emphasised to facilitate large payments as efficiently as possible.

Recently IBS Intelligence reported that a Virtual Card or digital card, or cloud card is an online hosted, digital virtual representation of any plastic card or a generic identification method in identity management. Virtual credit and debit cards are modern alternatives for safe and simple spending. These mobile payment solutions allow users to spend money from their phones, thereby reducing the need to use physical cards.

 

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