Virtual cards as the name suggests don’t physically exist in the form of plastic or metal in our wallet. So, what makes the virtual card so special? It gives you almost the same power of spending with a lot more security and ticks the box if you are a pro-environmentalist. Corporate card spending, mainly through expense cards, has been seeing an exponential increase as companies are beginning to find new methods to manage their expenses more efficiently. So, let me explain the reasons why virtual cards will replace or at least compete with your corporate physical card.
As we all know most decisions for corporate change are made based on either how they reduce cost or man-hours of work. So here is some good news, the cost of generating a virtual card typically is a lot less than that of a physical card while maintaining the same utility.
- Fast & Easy
When you order a physical card you usually have to account for waiting times of at least a week to include production and delivery and even longer if you are expecting a PIN delivered by post. In other cases, you have to go through a tedious process of activation and there is a huge risk involved with receiving pre-activated cards.
Now, let’s look at virtual cards, creating them is just a click away. One-click and a new virtual card is there on your screen through a secure encrypted channel. They are pre-activated as there is no physical contact involved in delivering between the requestor and supplier.
Secure is the middle name of a virtual card. How many times have you worried about losing your wallet? How many times have you heard of someone facing financial loss due to stolen card data? How many times did you feel uncomfortable to publicly take out your card with the fear that someone might be reading your card number?
Virtual cards eradicate all the above problems. Virtual cards can only be seen on your banking or fintech app, post biometric identification hence why no one except you can see them even if you are careless with your mobile.
- Use Anywhere
A question that might arise is: “Is the card worthless other than for e-commerce as I can’t physically swipe it at a point of sale?”. This problem is taken care of thanks to Apple Pay, Google Pay or any other wallet supporting NFC payments. Now you can complete any transaction using a token generated by your wallet. Tokens add extra security as the NFC transactions use tokens for verification, which means that your card data is protected – even if scammers can get hold of the data it’s worthless.
- Limit & Rules on the Go
With a virtual card, it is far easier to apply limitations to spending, loading, unloading and transaction types with far more ease compared to a physical card. This helps you make sure that your employees are not making personal expenses using their corporate card. And, with products like Crosscard Expense, the business owner will be informed of every expense made on the card as soon as the payment is done. Plus, employees can share the receipt for proof using the Expense app image feature for receipts.
Last but not least, using virtual cards reduces your carbon footprint as there is no plastic, metal, or colour involved in their printing. Additionally, there is no paper or other resources consumed in the delivery process. An individual card may not seem like a lot, yet considering that there are over 20 billion physical cards in circulation, millions of which expire and need to be replaced every single day, there is a significant global impact. A complete shift away from using plastic cards would have a major environmental impact. Save the environment and move to the virtual cards!
With all of that being said it is quite clear that virtual cards will begin to play an even more significant role as we continue to move into a digital world. While you may not need to completely convert to the digital space they are definitely an important part of innovation to the payments world. You should at least consider incorporating them into your business expense solution. We at Crosscard offer a variety of products that can help you take advantage of all these benefits.
By Rahul Kanotra – Product Manager at Crosscard