For businesses, partners are the key to using the virtual card


As businesses seek cost reductions in a time of high inflation and with the COVID-19 recovery still very real and underway, more businesses are turning to options like virtual cards.

For the study “Accelerating The Time To Realized Revenue: The Virtual Card Edition”, a PYMNTS and MasterCard collaboration, we surveyed 400 executives in the manufacturing, healthcare, and transportation/logistics/shipping industries in the United States and Canada, finding that as awareness of virtual cards spreads, their adoption in a variety of industries and use cases is also increasing.

The survey found that “Businesses using virtual cards report a wide range of operational benefits, including reduced transaction costs, enhanced security, improved cash flow management, and better access to discounts and credit” , and numerous partnerships to obtain these advantages.

Get the study: Accelerate the Time to Realize Revenues: The Virtual Card Edition

use of virtual cards by companies

  • 36% of all US and Canadian healthcare companies use virtual cards to make B2B payments, and 40% use them to receive payments

File it under “what to do they or they know that we don’t,” but our survey reveals that medium and large businesses are using virtual cards more than their smaller competitors, and it’s worth a look.

We found this especially true in healthcare. As the study states, “large healthcare companies are almost twice as likely as their mid-market counterparts to use virtual cards to make and receive B2B payments,” 48% of large companies in the sector of health use virtual cards. to make payments, and 52% use them to receive payments. In comparison, only 24% of medium-sized businesses use virtual cards for payments, although 27% use them for real-time payments.

graphic, advantages of virtual cards

  • Canadian businesses using virtual cards are 137% more likely than US businesses to experience better access to credit, 409% more likely to receive additional discounts, and 319% more likely to experience lower processing costs

US companies are more advanced in their adoption of virtual cards, which makes the gains of Canadian companies adopting the technology stand out even more with staggering numbers.

According to the study, “Canadian businesses that use virtual cards cite more benefits to using them than their American counterparts. They are 137% more likely to say they have benefited from increased access to credit and 409% more likely to say they received additional discounts, eg Canadian businesses that use virtual cards to make payments are 319% more likely than US businesses to cite lower processing costs as a benefit.

graphic, why some companies have not adopted virtual cards

  • 48% of US and Canadian businesses that do not currently use virtual cards say their existing systems cannot interface with the technology

Our research identified the biggest barrier to using virtual cards, as businesses feel their payment processing infrastructure is not capable of handling this form factor.

However, the study notes that “companies can often overcome these obstacles by enlisting the help of third-party vendors. Outsourcing virtual card operations to trusted third parties can not only give businesses access to the subject matter expertise that they lack in-house, but these vendors can also work with businesses to find solutions that are compatible with computer systems.

Get your copy: Accelerate the Time to Realize Revenues: The Virtual Card Edition

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