Mastercard and Worldpay Introduce Virtual Cards for Travel Agents

Mastercard and Worldpay have joined forces to launch virtual cards designed to streamline payments for travel agents, addressing a long-standing challenge in the travel industry, as highlighted in PYMNTS.

Worldpay identified a persistent issue faced by travel agents: managing payments to suppliers such as airlines, hotels, and other travel service providers. “Travel agents that sell travel bookings directly to end consumers have long been challenged by how to best manage payments to suppliers such as airlines, hoteliers, and other travel service providers,” Worldpay said in a press release.

To tackle this, the partnership with Mastercard aims to enhance supplier payouts, creating tailored solutions that make payment processes more efficient and effective.

Worldpay’s integration with Mastercard’s Wholesale Program enables the distribution of virtual cards to travel agents, initially targeting clients in the U.K. and Europe. Notably, Worldpay is the first provider to offer Mastercard’s dynamic product code capability, allowing travel agents and suppliers to negotiate mutually beneficial terms.

Nabil Manji, head of FinTech growth and financial partnerships at Worldpay, highlighted the significance of this initiative: «Working with Mastercard to deliver value across the entire travel ecosystem through this virtual card program, we will be able to help travel agents realize new efficiencies in their payments processes while increasing travel supplier virtual card acceptance through more transparent and data-driven practices.»

According to Manji, Worldpay processed over $100 billion in transactions within the travel and airline sector last year, underscoring its long-term commitment to the industry.

The appeal of virtual cards extends beyond the travel sector, offering benefits like improved payment speed, enhanced security, and reduced fraud risk. Steve Tackett, executive vice president of operations at Priority, shared insights into the growing adoption of virtual cards during a recent interview with PYMNTS.

Tackett emphasized that virtual cards provide near-instant payments, unlike paper checks, which are prone to delays. They also offer greater control over cash flow, cash-back incentives, and enhanced security. “You have less fraud, more control, and the efficiency makes it all worthwhile,” Tackett said. He further noted that virtual cards can transform accounts payable into a profit center.

Virtual cards are increasingly popular, particularly among mid-market companies seeking to optimize payment processes. This partnership between Mastercard and Worldpay is another step toward advancing payment solutions, particularly in industries that require seamless and secure financial transactions.