Juniper Research forecasts an API-driven surge in global virtual card spending beyond 2023’s $3.1 trillion mark.
According to research by fintech and payments industries research firm Juniper Research, the adoption of API-based virtual card issuing platforms will be the key factor in ensuring that global virtual card spend continues to increase from its $3.1trillion value in 2023.
Virtual cards make use of card numbers that are often ephemeral and produced at random and connected to a payment account. They handle payments and update accurate payment information. Distributing money quickly and securely is made possible by virtual cards. They handle spending caps well the entire time.
Virtual card issuing using APIs makes it possible to issue cards more quickly and affordably. It increases productivity and opens up new use cases for consumer and business-to-business payments. The amount spent on virtual cards worldwide might rise to $13.8 trillion in the next five years, a 355% increase.
Assessing potential market prospects in the future
With analysis and estimates of over 39,000 datapoints spanning 60 markets over a five-year period, the new market research suite provides the most thorough evaluation of the virtual cards market to date. A “Competitor Leaderboard” and an analysis of potential future market prospects are included.
Research author Daniel Bedford stated, “Virtual cards offer an adaptable solution that can be heavily customized, including spending limits and restrictions,” in response to the report’s conclusions. They allow companies to cut expenses and dramatically enhance their spend management.
Juniper Research’s latest Competitor Leaderboard report ranks Stripe, Revolut, and Marqeta as virtual card leaders. According to the survey, user-friendly, API-based platforms with secure card deployment and spending restriction management tools were their biggest success factors.
Rewards promoting adoption
Juniper Research encourages vendors to offer reward and loyalty cards to stand out in the competitive consumer virtual card industry. Unique discounts on partner products, loyalty points, and merchant cashback can also boost virtual card spending and client retention. To create cooperation ecosystems, virtual card platforms will be needed. Businesses can do this by forming direct partnerships with retailers or using pre-existing loyalty programs.
