By A new study from Juniper Research, the foremost experts in fintech & payments markets, has found that the total volume of virtual card transactions will reach 175 billion by 2028; rising from 36 billion in 2023. Growing by a significant 388%, the market will be accelerated by the adoption of API (Application Programming Interface) virtual card issuing platforms.
A virtual card uses a randomly generated and generally temporary card number linked to a payment account, which is used to process payments in lieu of genuine payment details. Virtual cards provide a secure and fast way to distribute funds, while effectively managing spending limits.
API Platforms Vital for Growth
The report identified easy-to-use API platforms, which allow businesses to establish a virtual card programme that they can deploy easily and scale alongside their needs, as a key development driving virtual card growth.
Research author Daniel Bedford commented: “By offering Banking-as-a-Service APIs featuring virtual cards, vendors such as Stripe empower businesses to launch their own virtual card programmes. We recommend that virtual card vendors focus on API-enabled models, to maximise the flexibility virtual cards provide.”
API Integration Key for Success
Another key success factor identified by the report was the readiness of a virtual card platform to easily integrate within an organisation’s own software and established infrastructure. For example, procurement-focused virtual cards need to integrate with accounts payable software in order to automate renewals, log payments and generate digital receipts. Virtual card vendors must therefore integrate with a wide range of third-party software systems across key verticals of interest, in order to maximise their success.
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