BASINGSTOKE, U.K. – The number of virtual card transactions will exceed 121 billion globally by 2027, increasing from 28 billion in 2022, reflecting growth of 340%, according to a new study from Juniper Research.
The study forecasts that the rising integration of virtual cards to existing digital wallets services, such as Apple Pay and Google Pay, will drive the growth by exploiting existing substantial user bases of these digital wallets.
A virtual card is a randomly generated card number linked to a payment account.
The Key to Security
According to the research, the global number of virtual card transactions through mobile payment methods will grow from five billion in 2022 to 53 billion in 2027, as adoption of virtual cards in contactless payments accelerates.
The research “identified the inclusion of virtual cards as a key market driver of consumer adoption of contactless payments in rapidly developing economies, such as India,” Juniper reported in releasing its findings. “This allows them to meet market demand for convenient payment options during checkout amongst unbanked populations.”
Still, virtual cards face tough competition from other payment methods, such as traditional contactless cards and QR codes, the research states.
“However, the report anticipates that the secure nature of virtual cards will drive demand in an increasingly security-conscious market,” according to Juniper.
U.S. to Represent Largest Market
In addition, the report forecasts that the U.S. will account for $71 billion in B2B virtual card revenue by 2027, representing 72% of global revenue.
“It predicts that the growing use of virtual cards in the healthcare sector will be key to driving this growth, with virtual cards increasingly used to pay for supplies and equipment due to the speed of transactions and inherent security of this payment method,” Juniper said of the new report. “ In response, it encourages virtual card vendors to offer integration with accounts-payable software, such as MineralTree and WEX, to streamline the payment process undertaken by major US healthcare providers.”
The research can be found here.
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