US Virtual Cards Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

US Virtual Cards Market is segmented By Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards and B2C POS Virtual Cards) and By End-User (Consumer Use and Business Use)

Market Snapshot

US Virtual Cards Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >6 %
US Virtual Cards Market Major Players

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Market Overview

The lock-down issued by the United State's Government amid COVID-19 had a detrimental effect on the financial sector. The number of electronic payment transactions or digital payment transfers has decreased from both enterprises and customers as a consequence of the lockdown, which has directly affected the virtual card industry in the United States.

Virtual Cards have become a reliable option for majority of the US citizens as switching to virtual cards has made online shopping secure and easy, and reduces the possibility of crime. While purchasing online, workers essentially locate the object they would like to purchase and send a request to their manager for approval. The manager then produces a virtual certificate for the amount ordered and gives it to the employee who puts the information on the billing screen at checkout. In such a situation, the organization retains complete access and power over the sales method, whilst the employee has the right and autonomy to perform the transaction as normal.

Much of the growth in commercial cards has been observed in large and middle market organizations. The larger corporates, businesses with revenues of USD 1 billion and upwards, were the earliest adopters of commercial cards. Dynamic middle market businesses are now increasingly also looking to move away from inefficient manual processes and make the switch to digital. Across both large and middle markets, however, there are a raft of drivers of the growing interest in commercial cards. These businesses often look for higher levels of automation and the more advanced technology they associate with commercial cards .

Scope of the Report

A virtual card is a digital payment system that functions as a token, and is used for electronic payments and mobile orders. Credentials are created automatically by a method called tokenization, and the cards come with built-in financial controls to finance the card for either single-use or multi-purpose transactions. US Virtual Cards Market is segmented By Product Type and By End-User. By Product Type, the market is segmented into B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards. By End-User, the market is segmented into Consumer Use and Business Use.

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

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Key Market Trends

Increase in the Penetration of Internet in the USA

The percentage of households using the internet has increased over time, even in the non-urban areas. The internet has impacted the work life as well by facilitating greater ability to work from home. Also due to the nuanced learning and working models in the present day, the Internet is expected to expand furthermore. Growing adoption of digital platforms and rising adoption of online payments modes augments the demand for the virtual cards market. The rising adoption of smartphones and rising power of the digital platform is fueling the demand for the virtual cards market. In recent years, internet use is at the peak owing to many reasons such as advanced technologies such as 4G/5G and high internet penetration in US. Thus it propels the demand for the virtual cards market. 

US Virtual Cards Market Trends

Increase in the Online Shopping and Rise of E-Commerce Platforms

Rising number of electronics transactions in the United States is expected to propel the demand for the virtual cards market. In addition, adoption of smartphones, online payment mode and use of online shopping is increasing due to increasing urbanization. The rapid growth of e-commerce is also contributed by the advent of technology such as Artificial Intelligence (AI), Chatbot, and Machine Learning. AI and Machine Learning (ML) are helping e-retailers to understand customer demand and thereby, leverage these technologies by making smart product recommendations and personalized guidelines. The trend is expected to continue as it gives more comfortable, efficient and helpful experience. Thus it is expected to spur the demand for the virtual cards market in coming years. Such growing market for the real-time payments transactions is expected to boosts the demand for the virtual cards market.

US Virtual Cards Market Growth

Competitive Landscape

The report includes an overview of the top players in the Virtual Cards Market operating across the US region. The US Virtual Cards Market is characterized by near consolidated players giving tougher competition to the newer players. The Market is classified as Consolidated with 4 to 5 major players occupying a significant portion of the Market.

Recent Development

  • On June 2022, Global digital payments firm Visa and Safaricom, the operator of the M-Pesa mobile money product, have today launched a virtual card, enabling millions of M-Pesa users to make digital payments globally including the US region. The virtual card will enable 30 million M-Pesa users to make cashless payments at Visa’s global network of merchants. Users can activate the virtual card through the M-Pesa mobile app or by USSD.
  • On April 2022, American Express Partners with Billtrust to offer suppliers a solution to accounts receivable challenges. B2B accounts receivable automation and integrated payments leader, to enable suppliers to streamline acceptance of American Express virtual cards. With this integration, suppliers will have the ability to automate and accelerate virtual card payments from customers while receiving a real-time view of their outstanding invoices and current cash flow.

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. INDUSTRY DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - 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 Insights on Impact of Technology and Innovation

    6. 4.6 Impact of COVID-19 on the 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 By End-User

      1. 5.2.1 Consumer Use

      2. 5.2.2 Business Use

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 American Express

      2. 6.2.2 JP Morgan Chase

      3. 6.2.3 Billtrust Inc.

      4. 6.2.4 Abine Inc.

      5. 6.2.5 VISA

      6. 6.2.6 Vanguard

      7. 6.2.7 Skrill

      8. 6.2.8 Qonto

      9. 6.2.9 Stripe

      10. 6.2.10 WEX Inc.*

    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 US Virtual Cards Market market is studied from 2018 - 2027.

The US Virtual Cards Market is growing at a CAGR of >6% over the next 5 years.

American Express, JP Morgan Chase, Billtrust Inc., Abine Inc., VISA are the major companies operating in US Virtual Cards Market.

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