Virtual card partnerships and products expand.
Used for a widening variety of payment purposes, virtual cards continue to grow in importance to the $1.9 trillion commercial cards industry, according to market research firm Packaged Facts in the new report “Commercial Payment Cards: U.S. and Global Market Trends, 10th Edition.”
Spending on the cards, which can be used repeatedly, like a regular plastic card, or just once (a single-use account), is expected to surpass spending on corporate travel cards in 2017. And continued growth opportunity is significant. Virtual card leader Mastercard has noted that the media, construction, commercial real estate, insurance, health care verticals provide further growth opportunity.
“This is a space that continues to attract heated interest from payments market participants, with new virtual card partnerships and products being introduced at a quick pace,” said David Sprinkle, research director, Packaged Facts.
Illustrating virtual cards’ positive momentum, two market participants continue to grow virtual card payment value at a healthy clip. Combined, WEX and FleetCor estimated “virtual card” payment value grew by just under 19% in 2016. While the totals represent largely virtual card payment value, some non-virtual corporate card payment value is also included.