According to a new report by Ashish Sabadra of Deutsche Bank, virtual cards could double US purchase volume to USD 160 billion by 2018 (reaching above USD 500 billion by 2024) from USD 83 billion in 2015.
A virtual card is a credit, debit or prepaid virtual card (a physical card does not exist) and can be automatically generated online with a unique 16-digit number and can even be used for one time use. The account number stays active for a pre-determined time period and can be used for online, phone, fax and mail purchases.
In a report published recently, Sabadra argued that virtual cards improve cash flow for the receiving party while providing cash rewards to the payers. In addition, virtual cards have seen improvements in operational efficiency, security and lower fraud usage.
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