Mastercard & NatWest launch virtual card for UK businesses and employees

By Gloria Methri

NatWest and Mastercard have launched a new virtual card payment solution for businesses – Approval2Buy with Mobile Virtual Cards.

The new service is the first in Europe to use Mastercard mobile virtual card app, enabling companies to provide virtual cards to their employees for use worldwide. It eliminates the need for physical cards to make corporate payments while providing businesses with increased flexibility, control, and security.

Virtual cards can be generated instantly online, and now also Tap and Go payments via digital wallets, meaning there is no waiting period for a physical card to arrive in the post. Finance teams can customise spending controls, for example, by setting a budget, limiting the length of time the virtual card can be used, and designating where the card can be used by specifying merchants or geographical locations.

Other popular uses of mobile virtual cards include equipping temporary workers, infrequent travellers and recruits with means of payment for corporate travel and ad-hoc or unexpected supplier costs that are made on the go. This avoids the need to rely on personal cards or cash to pre-pay for business purchases.

The app will use Mastercard virtual card and tokenisation technology, whereby a cardholder’s sensitive data is replaced by a unique card number so sensitive account details are not exposed. This will offer enhanced data security and spend control features, all accessible via a simple, easy-to-use interface.

For end-users (full-time, part-time or temporary workers), the virtual card added to digital wallets will provide convenient and quick checkout options, near-instant payments and immediate access to funds for urgent needs. Thanks to the pre-populated expense data feature, end-users and companies will also benefit from reduced admin time spent reporting and reconciling expenses.

Simon Forbes, President, UK and Ireland at Mastercard, said, “The introduction of mobile virtual cards represents a step change in the corporate payments landscape. It will simplify, speed up, and bring flexibility to what has long been a cumbersome process for many businesses and their employees. Collaborating with NatWest to bring mobile virtual card payments to their business customers marks the start of a new era for business payments – one that we are proud to be powering.”

Andrew Harrison, MD Customer Goals & Journeys, NatWest, said, “New payments technology presents new ways for businesses to progress and grow. Virtual cards are a great example. Businesses can now use virtual cards for point-of-sale transactions using mobile phones. This additional feature has generated new use cases. It will also expand the market as it will be helpful for contingent labour, temporary employees or where a card is needed for a specific period, such as a day, week or month. The ability to use virtual cards for online as well as point of sales transactions with efficiency and financial control is a game-changer.”