Digital payments are becoming the norm, and virtual cards could emerge as a go-to option for businesses and consumers alike. They can offer security, flexibility, and convenience—all without the need for a physical card.
What are virtual cards and how do they work?
Virtual debit or virtual credit cards function just like traditional payment cards, but they exist only in digital form. They come with a unique card number, expiration date, and CVV, making them useful for online transactions and storing in digital wallets.
Unlike physical cards, they can be issued instantly, assigned for specific purchases, and even set to expire after one use. That makes them a useful tool for security and spending control.
How virtual cards differ from physical cards
- Lower risk of loss or theft
- Built-in security features like single-use numbers and spending limits
- Instant issuance—no waiting days for a card to arrive in the mail
Where it makes sense to use a virtual card
- Online shopping and subscription services
- Managing business expenses and vendor payments
- Corporate travel and employee spending controls
Why banks and business could turn to virtual cards
Virtual debit card and virtual credit cards can solve problems for both financial institutions and their customers:
Stronger security
Virtual cards can be generated for single transactions or limited-use cases, which means they reduce exposure to fraud and unauthorised charges.
More spending controls
Companies and individuals can create pre-set limits, specific merchant restrictions, and real-time transaction tracking. All these things can help them keep a better track of balance sheets, incomings, and outgoings.
Digital-native experiences
Integration directly into mobile banking apps, digital wallets, and payment gateways, offering a smooth and intuitive experience for users.
Where could virtual cards make an impact?
From startups to global enterprises, virtual cards could change the way payments are handled. Some common use cases include:
- Vendor payments: Businesses can issue single-use virtual cards to pay suppliers securely, which could reduce fraud risk and simplify reconciliation
- Online transactions: Consumers can generate virtual cards for e-commerce purchases, keeping their main account details protected
- Corporate travel: Companies could use virtual cards to control employee expenses, improving compliance and simplifying reimbursement
How to get started with virtual card issuing
- Choose the right tech partner – A cloud-native, API-driven platform makes integration easy and scalable.
- Set security and spending controls – Define rules for transaction limits, merchant categories, and fraud detection.
- Make it easy for users – Ensure seamless issuance and management within your existing banking app or platform.
- Monitor and improve – Use transaction data to optimise features and enhance customer experience.
Why picking the right platform makes the difference
Financial institutions don’t have to build their virtual card issuing programme from scratch. The right technology partner can provide the infrastructure, security, and flexibility needed to offer virtual cards efficiently.
Take Pismo for example. Our card issuing platform features native integrations with major card networks, as well as full certification with Apple Pay, Google Pay, and Samsung Pay.
It’s also built on APIs, ensuring flexibility in creating new capabilities. Combined in different ways, they address specific needs for payments and banking. Our auto-scaling cloud infrastructure can also offer support for you as your business grows.
Interested in the future of virtual cards? Get in touch with us today to find out more.
