Corporate virtual cards are becoming a key tool for accelerating supplier payments and managing liquidity, 81% of CFOs already use them.
According to a joint study by Visa and PYMNTS, the adoption of digital payment solutions is growing rapidly. Virtual corporate cards became the third most popular working capital management tool after credit lines and overdrafts among the most efficient companies.
Key findings of the report are:
- 81% of companies already use virtual cards and other digital payment solutions for working capital management, a 13% increase from 2023;
- 77% of invoices were paid early thanks to virtual cards, 21% more than the previous year;
- the average days payable outstanding (DPO) was reduced by 28%;
- the use of virtual cards helped companies save up to $11 million annually by optimizing financing and inventory costs.
The study, conducted from May 21 to July 9, 2024, surveyed 1,297 CFOs and financial executives from 23 countries.
Respondents expect banking institutions to further develop digital solutions for fast payment approvals with minimal delays and flexible financing tools, including personalized credit lines, virtual cards with extended limits, and automated platforms for comprehensive corporate payment management.
In November 2024, Worldpay launched virtual payment cards under the Mastercard Wholesale Program (MWP) to enhance payment efficiency for travel service suppliers from agencies in Europe and the U.K.
