Mastercard sees huge growth in virtual cards
Virtual cards are projected to reach a $17.4 trillion market by 2029, according to Juniper Research. The expansion stems from inefficiencies in accounts payable and receivable, where payments arrive late over 30% of the time. Mid-sized companies often employ 20, 30, or even 50 people just to manage these delays.
Marc Pettican, who leads corporate solutions at Mastercard, has worked across the payments ecosystem for years. He views virtual cards as more than a transaction tool—they’re reshaping how businesses manage cash flow.
From travel to logistics: expanding beyond the obvious
Virtual cards began in travel, solving secure payments for bookings. Their use has since broadened to fleet management, healthcare, insurance, and online marketplaces. The aim isn’t just replacing checks or wires but embedding payments into workflows so they occur automatically.
Mastercard must balance the needs of buyers and suppliers. If virtual cards become too costly for suppliers, the system fails. If they don’t offer enough value to buyers, adoption slows. The solution lies in orchestration—connecting different payment methods rather than favoring one.
Mastercard’s platform now includes account-to-account transfers and stablecoins. This allows businesses to choose their payment method while the network handles trust and infrastructure.
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The real challenge is staying relevant as payments become less visible. When transactions happen automatically within software, users may not notice Mastercard’s role. The company bets its trust layer—verifying identities, preventing fraud, and securing funds—will remain essential even as payments fade into the background.
What’s next for banks and their commercial card teams
Pettican urges mid-sized banks to act now. Virtual cards are no longer a niche product but a standard part of cash flow management, especially as working capital pressures grow. Banks treating them as an add-on risk losing customers to fintechs or larger competitors that integrate them seamlessly.
The change requires rethinking the bank-corporate relationship. Commercial cards were once about extending credit and earning fees. Today, they’re part of an ecosystem that includes real-time payments and digital wallets.
Mastercard positions itself as a bridge. It doesn’t compete with banks but provides the infrastructure for virtual cards and embedded payments. This lets banks focus on customer relationships and risk management while relying on Mastercard’s technology.
For now, Mastercard aims to be the unseen layer enabling these transactions. Whether a business uses a card, bank transfer, or stablecoin, the network ensures secure, fast, and frictionless movement of funds. The focus has shifted from whether virtual cards will dominate B2B payments to who will build the infrastructure to support finance innovation.
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