According to research by Juniper -Business use of virtual cards is expected to grow by over 90 percent through the next few years, and usage is anticipated to surpass $1.6 trillion by the year 2022.
We have more interesting facts that show a high acceleration in the use of these cards in the next few years.
A research carried out by Mastercard states that” More than 30% of business executives expect their check usage to decrease, while ePayables with virtual cards are expected to see the greatest leaps at 37%”.
Juniper Research analysis shows that- B2B virtual cards will account for almost 80% of virtual card transactions by value, as that transaction value doubles over the next 5 years.
As the Covid-19 pandemic continues to impact how businesses and payments processes, the adoption of virtual payment options have seen a remarkable increase in the history of digital payments.
These cards are gaining popularity during this digital era as consumers show more interest in cashless and contactless payment options.
Let us understand all about these virtual cards in detail in this blog.
Content of the blog
- What is a Virtual Card?
- How to use them?
- Why are they cooler than physical cards?
- Zaggle virtual cards
1.What is a Virtual Card?
A Virtual card is as same as a physical card except for the plastic card structure.it functions in the same way as the credit/debit card .it is also referred to as a temporary card or pseudo card.
It is created for one-time use and cannot be used further once the transaction is completed.
It is an electronic card that comes with a unique number for each transaction. Virtual payment cards can be used for most online purchases. Often times, you can set a maximum spending or load limit on the virtual card to avoid overload.
The key advantage of using virtual cards is its ability to reduce the risk of fraud and data interception.
2.How to use them?
Each virtual card comes with a unique number, CVV number, and validity. It can be used for any online transaction just like a normal debit card.
Creating a new virtual card for each transaction means that even if sensitive card data is intercepted, it cannot be used to make other payments.
Additionally, when a virtual card is “created” it is created for a specific payment, indicating the exact amount, merchant, and date range.
Payments outside of these parameters will simply not be allowed, protecting buyers from fraudulent transactions without affecting the user experience.
The virtual card can be used for online transactions as usual as other physical cards and through smartphones to make online payments.
3.Why are they cooler than physical cards?
Virtual cards are cooler than physical cards since they provide high-grade security and data protection. They have potential use in B2B industries than B2C as they provide one-time use secure numbers which reduce the risk of frauds.
The virtual cards make the payment in the B2B stream very secure and trackable with their partners.
Moreover, the VCN’s Unique Virtual Card Number (VCN) authorization framework makes payments easy to track and provides all the data needed to help merchants reconcile payments with account receivables – which increases operational efficiency on the supplier’s side.
4. Zaggle virtual cards
Zaggle offers a wide range of virtual cards to suit business needs. These virtual cards help in all the online transactions and encourage contactless payments during these pandemic times.
Kuber virtual card and Zinger multi wallet card are the two virtual cards that have the same features as the physical card and can be used online and at all outlets to make purchases.
Kuber virtual card: The Kuber Card is a non-reloadable card that can be used for online purchases. Cardholders transact online using the Card number, CVV, and Expiry as the first-factor authentication. Second-factor authentication will be through OTP.
Zinger multi-wallet card: The Zinger Multi Wallet Card is a Virtual Card for use at online portals in India. It provides the convenience and security of doing transactions online while not having to present a physical card for the same. Zaggle Zinger Card is an end-to-end payment solution specially designed for Corporates to make their payments/disbursement experience simpler and faster.
We are available on – https://www.zaggle.in/