Virtual Cards: The Future of Cashless Transactions

The advancement of digitalization has led to an increase in digital payments. Consequently, the development of transaction options is at an all-time high. This is the result of the convenience that digital payments offer to users. Furthermore, the need for digital advancement has led to the introduction of cashless payment systems.

During demonetization and the life-threatening COVID pandemic, cashless transactions got a significant boom. It has completely changed the way people manage their transactions. One of the most important advancements in this pro-digital era is the introduction of virtual cards. 

What are virtual cards?

Virtual cards are one of the best cashless payment options. These cards are issued digitally via an app or a website and can be linked with smartphones via Google Pay, Apple Pay, etc. Virtual cards look like physical cards having details like a 16-digit card number, expiry month and year, and CVV. The significant difference is that virtual cards are digital and have different numbers from physical cards.

Virtual cards can be used to make instant payments, buy subscriptions, or for online shopping. Since the introduction of virtual cards, they have become the talk of the town as they are easy to use and come with numerous benefits. Here are some of the reasons why virtual cards are the future of cashless transactions:

• Simplicity

Since virtual cards are convenient to use, their market demand has increased. These cards have a unique credit card number that enables cardholders to make purchases online or over the phone.

Via a virtual card, the customer can make a direct payment via their smartphones, thus eliminating the need to carry a wallet packed with physical cards whenever they want to purchase goods. The same goes for companies; they can assign virtual cards to different departments to pay for their subscriptions, vendors, and other purchases while tracking the expenses and monitoring the use of cards. 

• Security and control

Earlier, when you had to get a card or block a card, you had to visit the bank, fill out the forms and then wait for a few days. In the case of virtual cards, you can apply or cancel them with just a click of a button. In addition, virtual cards are encrypted, making them a secure mode of payment.

Also, now you can easily set permissions to ensure the cards can be used for pre-approved budgets; therefore, it offers complete control over the employees’ spending.

• Reduced stress

Virtual cards eliminate the need to maintain paperwork that causes the cost procurement and accounting teams so much stress and additional work. All the records are archived on the dashboard that you can access anytime from your phone or desktop.

• Environmentally friendly

Since these are virtual cards, the use of plastic is zero, and the KYC is paperless, contributing to a healthier environment. Also, you won’t have to travel to the bank as the entire process is online.

• Mapping expenses

Since companies are making online transactions, tracking expenses becomes easy as companies can assess the collected payment data and determine whether they are overspending and need to curb the costs.

It can be challenging for a company to keep track of cash flow when expenses are escalating from all sides. But, with the introduction of virtual cards, organizations can easily track the entire cash flow directly on their smart devices or laptops and improve internal transparency and payment processing effectively.

E-Payments Are the Future

Consumers today want safe, transparent, touch-free, and straightforward ways to make digital payments. There has been a significant rise in digital payments as more customers now have access to smartphones and the internet. As a result, the core of the system—from onboarding new customers and doing KYC verifications to opening their digital accounts—has been entirely revolutionized. Financial institutions may now instantaneously activate, provision, and manage card-related features on various consumer devices, thanks to the issuance of virtual cards. In addition, it helps to enable secure and straightforward credit access for in-store, app, or online payments.

Modern issues require innovative solutions, particularly in the financial sector. Virtual cards are one of the most innovative payment methods in today’s digital era. EnKash is one of the best spend management platforms that generate virtual cards as per business requirements. If you want to avail maximum benefits of virtual cards and want a transparent payment system, connect with EnKash today!