Global virtual card transactions will exceed $121 billion globally by 2027, increasing from $28 billion in 2022, according to a study by Juniper Research.
This 340% growth in transactions will be due largely to the rising integration of virtual cards into existing digital wallets services, such as Apple Pay and Google Pay. This will drive growth by leveraging the existing substantial user bases of these digital wallets.
Virtual cards face tough competition from other payment methods, such as traditional contactless cards and QR codes. However, the report anticipates that the secure nature of virtual cards will drive demand in an increasingly security-conscious market.
The research also highlighted that the global number of virtual card transactions through mobile payment methods will grow from 5 billion in 2022 to 53 billion in 2027, as the adoption of virtual cards in contactless payments accelerates.
It identified the inclusion of virtual cards as a key market driver of consumer adoption of contactless payments in rapidly developing economies, such as India. This allows them to meet market demand for convenient payment options during checkout amongst unbanked populations.