API-Based Virtual Card Issuance: A Key Driver for Global Spend Growth

The future of global virtual card spending, which reached a value of $3.1 trillion in 2023, hinges on the adoption of API-based virtual card issuing platforms, as revealed by research conducted by Juniper Research, a leading fintech and payments markets research firm, as reported by The Fintech Times.

Virtual cards, characterized by randomly generated and typically temporary card numbers linked to a payment account, have emerged as a secure and efficient means of processing payments while safeguarding genuine payment details. These cards also offer an effective way to manage spending limits.

The implementation of API-based virtual card issuing introduces a seamless and cost-effective approach to card issuance. This enhancement in efficiency paves the way for an array of possibilities within B2B and consumer payments, potentially leading to a staggering 355 percent increase in global virtual card spend over the next five years, reaching $13.8 trillion.

Juniper Research’s latest market research suite stands as the most comprehensive assessment of the virtual card market to date, featuring analysis and forecasts encompassing over 39,000 data points across 60 markets over a five-year horizon. It includes a ‘Competitor Leaderboard’ and delves into future market prospects.

Daniel Bedford, a research analyst at Juniper Research, commented on the report’s findings, emphasizing, «Virtual cards offer an adaptable solution that can be heavily customized, including spending limits and restrictions. They enable businesses to significantly improve their spend management while reducing costs.»

The Competitor Leaderboard report from Juniper Research highlights Stripe, Revolut, and Marqeta as the established leaders in the virtual cards sector. Moreover, the report underscores the significance of intuitive API-based platforms with user-friendly functionality for secure card deployment and spending restriction management as pivotal factors for success.

In an intensely competitive consumer virtual card market, Juniper Research recommends that vendors consider offering loyalty- and rewards-linked cards to set themselves apart. Additionally, exclusive incentives such as offers on partner products, rewards points, and cashback on specific merchants can effectively boost virtual card spending and customer retention. To achieve this, virtual card platforms may need to establish robust partnership ecosystems by collaborating directly with merchants or pre-existing loyalty service providers.