Virtual Cards Market Size, Share, and Growth Forecast by 2031

The virtual cards market is anticipated to expand at a CAGR of 22.6% from 2023 to 2031. Rising online transactions are driving the virtual cards market growth.

Virtual Cards Market Analysis 

The virtual cards market is a dynamic sector within the financial technology (FinTech) industry that revolves around the issuance and utilization of virtual cards for various payment purposes. Virtual cards, also known as digital cards or e-cards, are digital representations of traditional payment cards (such as credit or debit cards) that can be used for online transactions, subscriptions, and other electronic payments. Unlike physical cards, virtual cards do not have a physical form and typically consist of a card number, expiration date, and security code that are generated electronically and stored within digital wallets or payment platforms.

Virtual Cards Market Industry Overview

• The virtual card market has witnessed significant growth in recent years due to several factors driving demand for digital payment solutions. These factors include the increasing adoption of e-commerce, the rise of subscription-based business models, the need for enhanced security in online transactions, and the convenience and flexibility offered by virtual cards.
• One of the primary drivers of the virtual card market is the rapid expansion of e-commerce. As consumers and businesses increasingly rely on online shopping for goods and services, there is a growing need for secure and convenient payment methods. Virtual cards offer a secure way to make online payments without exposing sensitive financial information, reducing the risk of fraud and unauthorized transactions.
• Furthermore, the proliferation of subscription-based services across various industries, including streaming media, software as a service (SaaS), and online gaming, has fueled the demand for virtual cards. These recurring payments often require a reliable and flexible payment method, and virtual cards provide an efficient solution for managing subscriptions and recurring billing cycles.

REGIONAL FRAMEWORK

Virtual Cards Market Drivers and Opportunities

Rising Online Transaction to Drive the Virtual Cards Market

• Electronic and online transactions are increasing in number on a global scale. The use of smartphones for online buying and payments has increased substantially during the last few years. The rise in online payment activity is expected to propel the virtual cards market's expansion.
• On a smartphone, a virtual card's 16-digit card number is specific to its owner. This card cannot be lost or stolen because there is no physical card to misplace, and the information is maintained online. This data can be altered or deleted after use. Due to its convenience and transparency, online transactions have gained popularity, leading to the fastest-growing virtual card market.

Virtual Cards Market Report Segmentation Analysis

• Based on card type, the market is segmented into banks, debit card, and credit card.
• Over the course of the forecast period, the debit card market is expected to develop significantly. Growing net banking users worldwide are predicted to fuel the market for virtual debit cards, which in turn will fuel the segment's growth. For example, Google revealed plans to build two new payment initiatives—virtual cards and digital wallets—in May 2022. Offering improved security and increased convenience to people worldwide is the goal of this launch.

Virtual Cards Market Share Analysis by Geography

The scope of the virtual cards market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. During the projection period, North America is anticipated to hold the largest market share. This is a result of North American customers' preference for shopping at outlets that offer virtual card equivalents at the point of sale. Moreover, millennials are becoming less inclined to pay with cash; over 50% of the population will probably avoid making purchases from establishments that do not take virtual card payments. The virtual cards market growth in North America is significant as a result of various causes, including the increasing usage of digital payment systems, the presence of large corporations, and the implementation of cutting-edge technologies like 5G/4G.

Virtual Cards Market Report Scope

The " Virtual Cards Market Analysis" was carried out based on provider, end-user, and geography. In terms of card type, the market is segmented into debit cards and credit cards. Based on end-users, the market is segmented into business use and consumer use. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Virtual Cards Market News and Recent Developments

The virtual cards market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. Companies adopt inorganic and organic strategies such as mergers and acquisitions in the virtual cards market. A few recent key market developments are listed below:  

• In January 2024, Mastercard initiated a strategic partnership with Illicocash, the fintech arm of Rawbank, to introduce a virtual card program in the Democratic Republic of the Congo (DRC). The program supports financial inclusion by providing a new and effortless way for consumers and businesses to perform e-commerce transactions.

[Source: Mastercard, Company Website]

• In February 2024, ConnexPay announced the launch of ConnexPay Flex, a variable-rate virtual card with over 30 dynamic rates, designed to facilitate strategic supplier spend, often at a pre-negotiated rate. Part of ConnexPay Exclusives, a suite of payment options designed to increase supplier acceptance and boost profitability, ConnexPay Flex offers clients a very broad spectrum of rate categories when paying suppliers in the United States.

[Source: ConnexPay, Company Website]

Virtual Cards Market Report Analysis

Virtual Cards Market

• 
  CAGR (2023 - 2031)

  22.6%
• Market Size 2023
  US$ XX Billion
• Market Size 2031
  US$ XX Billion

Report Coverage

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope

• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis

• Industry landscape and competition analysis & recent developments
• Detailed company profiles

• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

• American Express
• BTRS Holdings Inc
• Wise Payments Limited
• JPMorgan Chase Co
• Marqeta Inc
• Mastercard
• Skrill USA Inc
• Stripe Inc
• WEX Inc
• Adyen

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

By Card Type

• Credit Card
• Debit Card

By End-user

• Business Use
• Consumer Use

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MARKET PLAYERS

Virtual Cards Market Report Coverage & Deliverables

The market report on “Virtual Cards Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
• Detailed company profiles.

Virtual Cards Market Report Scope