UK Virtual Cards Market- Growth, Trends, COVID-19 Impact, And Forecasts (2022 - 2027)

The United Kingdom Virtual Cards Market is segmented by Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards), by End User (Consumer Use, Business Use).

Market Snapshot

UK Virtual Cards Market
Study Period: 2018-2027
Base Year: 2021
CAGR: 8 %

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Market Overview

The 2020 Covid-19 pandemic and subsequent lockdowns had a significant influence on payments in the United Kingdom. There were significant changes in the way people bought and paid for things, with portions of the economy shut down for extended times and the demand for consumers to stay at home and maintain social distance. Consumers were urged to pay by card when shopping, as evidenced by the fact that 59 percent of consumer payments in 2020 were made by card.

Virtual cards, which offer highly sought-after capabilities surrounding payment automation, are one alternative that is rising on corporate radars. Virtual cards' appealing efficiency is responsible for the exponential increase this payment mechanism is expected to experience over the years. Alternative payment methods are becoming increasingly popular in the UK's business-to-business (B2B) scene since digital channels provide significant benefits over traditional, paper-based programs.

Virtual cards are becoming a popular choice for businesses all around the world. This increased corporate awareness and interest in virtual cards provides a significant opportunity for issuers wishing to strengthen their ties with their business customers. Issuers can position themselves to improve relationships with existing customers and new B2B clients by emphasizing on the many appealing benefits of virtual cards. Virtual Cards are becoming popular in UK regions due to the various advantage it offers. The most compelling reason to switch to the virtual cards is the security in payments it provides. Similarly, Virtual cards can help improve organizational efficiency by allowing payments to be fully automated. They also offer automated reconciliation for invoice or on-demand payments, as well as employee spending, reducing the time and resources needed manually doing these operations. Another benefit virtual cards offer is the transparency in the payments.

Scope of the Report

Virtual cards are 16-digit card numbers that are generated digitally and linked to an account. Virtual cards can usually be accessed via a smartwatch or smartphone. It's a type of online payment that makes things easier, safer, and smarter for customers than traditional payment methods. This report aims to provide a detailed analysis of the United Kingdom Virtual Cards Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The United Kingdom Virtual Cards Market is segmented by Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards), by End User (Consumer Use, Business Use).

By Product Type
B2B Virtual Cards
B2C Remote Payment Virtual Cards
B2C PoS Virtual Cards
End User
Consumer Use
Business Use

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Key Market Trends

Increasing Online Payments is Driving the Market for Virtual Cards in United Kingdom

The demand for virtual cards is increasing as more people use digital platforms and more people use online payment methods. The demand for virtual cards is being fueled by the increasing adoption of smartphones and the increasing power of the digital platform. Internet usage has increased in recent years due to a variety of factors including sophisticated technology such as 4G/5G and high internet penetration, which is driving demand for virtual cards. Similarly, the increasing adoption of smartphones and online shopping is also fueling the demand for virtual cards. Young people give more preference to online shopping with digital payments in the United Kingdom which further spurs the demand for virtual cards in the country.

UK Virtual Cards Market

B2B Payments Dominates the Transaction Value for Virtual Card Payments in UK

The majority of virtual card transaction value will continue to come from B2B payments in the United Kingdom. While B2B sales are less common, accounting for less than 1% of total transaction volume, typical transaction values are substantially greater, with the B2B segment accounting for the vast bulk of transaction value. This means that vendors must prioritize security and automation in order to handle large payments efficiently. The RFi study revealed that the greatest opportunity to grow virtual card adoption was found in specific verticals in the United Kingdom. In the professional services industry in the UK and within that vertical, the study found that the primary use cases for virtual cards were most prevalent for fuel expenses in the UK,

UK Virtual Card Market

Competitive Landscape

There are a number of Virtual Cards providers in the United Kingdom. Most of them offer Virtual Debit cards which are prepaid cards and easy to obtain while very few companies offer virtual credit cards. A number of digital-only banks offer virtual debit cards in the UK making the market fragmented in the virtual debit card segment.

Recent Development

  • In November 2021, Revolut announced the acquisition of Nobly POS (www.noblypos.com), a highly regarded ePOS software vendor, to expand its offering to the restaurant and hotel sectors. The acquired ePOS system is popular in the UK, USA, and Australia. The acquisition will expand Revolut’s offer to serve hospitality SMEs and accelerate the growth of Revolut's Business and Acquiring products.
  • In April 2021, Monzo offered new features for connected accounts and virtual cards. New features help for more visibility and control over the accounts. Features such as a summary for each account, income transfer, and pending transactions are easily accessible through the app.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Driver

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Insight on Technologial Adoption in the Market

    6. 4.6 Insight on Various Government Regulations in the Market

    7. 4.7 Impact of Covid 19 on market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 B2B Virtual Cards

      2. 5.1.2 B2C Remote Payment Virtual Cards

      3. 5.1.3 B2C PoS Virtual Cards

    2. 5.2 End User

      1. 5.2.1 Consumer Use

      2. 5.2.2 Business Use

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Revolut

      2. 6.2.2 Monese

      3. 6.2.3 Monzo

      4. 6.2.4 Starling Bank

      5. 6.2.5 Skrill

      6. 6.2.6 iCard

      7. 6.2.7 US Unlocked

      8. 6.2.8 Klarna

      9. 6.2.9 Pervesk

      10. 6.2.10 Payoneer*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The UK Virtual Cards Market market is studied from 2018 - 2027.

The UK Virtual Cards Market is growing at a CAGR of 8% over the next 5 years.

Revolut, Monese, Monzo, Starling Bank, Skrill are the major companies operating in UK Virtual Cards Market.

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