Mastercard’s Marc Pettican on the road to a $17.4 trillion virtual card market
Marc Pettican from Mastercard discussed the transformative potential of virtual cards in the accounts payable and receivable sectors, as they aim to address common payment friction. He highlighted that organizations typically face delays in payments due to invoicing issues, often needing multiple follow-ups before processing.
Pettican emphasized that the virtual card market is poised for substantial growth, targeting a projected value of $17.4 trillion. This growth indicates a significant shift in how businesses will handle payments, moving towards more efficient and streamlined solutions that align with the needs of modern finance departments.
Key takeaways
- ▸Virtual cards aim to solve payment inefficiencies in accounts payable and receivable.
- ▸Businesses face late payments over 30% of the time, indicating a need for better solutions.
- ▸The virtual card market is projected to grow to $17.4 trillion, signifying its increasing importance.
- ▸Inefficient invoicing and credit control processes necessitate the adoption of virtual payment solutions.
Why this matters
The shift towards virtual cards represents a critical transformation in corporate payment practices, enabling faster transactions and reducing the burden on accounts teams. As more businesses adopt these solutions, traditional payment methods may decline, pushing banks and payment service providers to innovate or risk losing market share to more agile fintech firms.
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