Virtual Cards Market By Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards) , By End-User (Businesses, Individuals) By Industry Vertical (Media and Entertainment, Hospitality, Consumer Goods, Energy and Utilities, Advertising, Education, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Virtual Cards Market
The virtual cards market was valued at $415.1 billion in 2023 and is projected to reach $2403.3 billion by 2032, growing at a CAGR of 21.5% from 2024 to 2032.
A virtual card is a digital version of the physical bank card that works for online transactions by generating temporary numbers. The generation of unique numbers upon each transaction contributes to the security of users’ financial data as it prevents the merchants from storing credit card information. Virtual cards mirror the attributes of a regular physical card, including unique card number, CVV code, and expiration date. They are typically available for one-time use.
Increase in penetration of digital wallets and payment apps for daily transactions has been a major driver of the virtual cards market. Moreover, rise in concerns pertaining to cyberattacks and data breach has boosted the adoption of virtual cards owing to their single-use attribute, which enhances the security of financial details of consumers. To elevate the transparency and security of online transaction through virtual cards, the assimilation of blockchain technology is trending in the market. The decentralization feature of blockchain makes transaction data immutable & tamper-proof and enhances traceability.
However, the landscape of virtual cards is currently at a pioneer stage, with limited adoption among merchants and restricted feasibility for international transactions. These factors are restraining the growth of the market in recent times. In addition, virtual cards cater to online transactions and do not serve offline purchases, which hampers the development of the market. On the contrary, the virtual cards market is anticipated to witness lucrative opportunities from the organization seeking to amplify their working capital flexibility and refine expense management. The card helps the businesses to reduce payment lag and extend their days payable outstanding. According to a recent survey conducted by Versapay—a financial technology company—approximately 55% of CFOs mentioned their teams using virtual cards more frequently. Therefore, exponential growth in the adoption of virtual cards is poised to open new avenues for the market.
Segment ReviewThe virtual cards market is segmented into product type, end user, industry vertical, and region. On the basis of product type, the market is divided into B2B virtual cards, B2C remote payment virtual cards, and B2C POS virtual cards. As per end user, it is bifurcated into businesses and individuals. By industry vertical, it is classified into media & entertainment, hospitality, consumer goods, energy & utilities, advertising, education, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of product type, the B2B virtual cards segment dominated the market in 2023.
As per end user, the businesses segment acquired a high stake in the market in 2023.
By industry vertical, the media & entertainment segment held a high share of the market in 2023.Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global virtual cards market include American Express, Bento Technologies Inc., Capital One, Citigroup Inc., DBS Bank Ltd., ePayService, JPMorgan Chase & Co., Mastercard, Revolut Ltd., WEX Inc., Wise Payments Limited, Billtrust (BTRS Holdings Inc.), HSBC, Marqeta, Inc., Standard Chartered Bank, State Bank of India, and Stripe, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy Product TypeB2B Virtual Cards
B2C Remote Payment Virtual Cards
B2C POS Virtual Cards
By End-UserBusinesses
Individuals
By Industry VerticalMedia and Entertainment
Hospitality
Consumer Goods
Energy and Utilities
Advertising
Education
Others
By RegionNorth America
U.S.
Canada
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Mexico
Rest of LAMEA
Key Market PlayersAmerican Express
Bento Technologies Inc.
Capital One
Citigroup Inc.
DBS Bank Ltd.
ePayService
JPMorgan Chase & Co.
Mastercard
Revolut Ltd.
WEX Inc.
Wise Payments Limited
Billtrust (BTRS Holdings Inc.)
HSBC
Marqeta, Inc.
Standard Chartered Bank
State Bank of India
Stripe, Inc.