Corporate Cards
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2
 min read
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September 25, 2023

How can virtual cards help with B2B payments

According to GlobalData's Payment Card Analytics, card payments in the UAE are expected to grow to around AED 345.2 billion (equivalent to US$94.0 billion) by 2025. This growth is happening at a steady rate of about 7.3% each year. Many people in the UAE are now favoring virtual or digital cards for their transactions. This shows how significant payment cards have become for the country's economy. In this article, we'll take a close look at virtual cards and how they're changing the world of B2B payments.

Let's take a quick glance at virtual cards and the hype around them, before we dig into the role they're playing in easing B2B payments.

Virtual cards are digital payment cards that exist only in electronic form and are not physically issued as plastic or metal cards. The hype around virtual cards stems from their enhanced security and convenience. They offer temporary or single-use card numbers, reducing the risk of fraud and unauthorized transactions. Additionally, virtual cards can be easily generated, managed, and canceled, providing users with greater control over their finances and reducing the need for physical cards. Their appeal also lies in their suitability for digital wallets, online subscriptions, and international transactions, making them a versatile and sought-after payment solution in an increasingly digital world.

As we go deeper into B2B payments and the surge of virtual cards, it’s apparent that various industries are actively changing how B2B payments work. Sectors like manufacturing, professional services, finance, insurance, real estate, and rentals are leading the way, making up more than 75% of the market.

B2B payments come in many forms, from old-fashioned cash and paper checks to modern options like wire transfers, ACH payments, credit/debit cards, cryptocurrencies, and online platforms like PayPal or Stripe. These fast payments help manage funds better, boost innovation, and cut payment costs.

In this financial disruption, our corporate cards are making B2B transactions easier in the UAE. We support businesses in going digital and bring many benefits to companies of all sizes. Let’s dive in.

1. Security & safety

When it comes to B2B payments, safety is a big deal, and virtual cards have your back. In a world where data breaches and fraud are real concerns, virtual cards act as a robust shield against these threats. They provide unique transaction codes for each payment, ensuring that your financial information remains confidential and safe from prying eyes. With the ability to set spending limits and usage parameters, you're in control, reducing the chances of unauthorized transactions. It's like having a security guard for every payment, which is an invaluable advantage for your business.

2. Streamlined payments

For businesses, especially those with lots of suppliers, virtual cards are a game-changer. You can easily generate a virtual card for a specific supplier or transaction, eliminating the need for paper checks or wire transfers. These cards work seamlessly with your procurement and accounting systems, helping you keep track of expenses and reducing the chances of mistakes or fraud.

3. Total control

Virtual cards give you enhanced financial control. You can closely manage your spending by setting precise limits and usage restrictions. But here's the kicker - they also offer improved financial insight. With virtual cards, you can easily track and categorize your expenses, providing you with a comprehensive view of your financial activities.

4. Increased efficiency

One more advantage of virtual cards is that they increase efficiency in your payment processes. They reduce the time and effort spent on manual tasks like cutting checks or reconciling wire transfers. With virtual cards, payments are streamlined, freeing up your resources to focus on more strategic aspects of your business.

Conclusion

Where everything is going digital, virtual cards are a breath of fresh air for B2B payments. They offer top-notch security, simplify your payments, improve your cash flow, and give you full control. By adopting virtual cards, your business can become more efficient and competitive. In the ever-evolving landscape of B2B payments, virtual cards are the key to a more straightforward, secure, and successful financial future.

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