In this Finextra posting we have the author discussing corporate debit cards, and the overall benefits of having the virtual card version of this payment utility available. Members of CEP will know of our extensive coverage on the commercial credit card product set, which has been a standard and expanding offering in North America for decades, then spreading into Western Europe, Asia Pacific and other regions during the past 15-20 years. However, the use of commercial debit is less extensive, and more or less limited to Europe since the preference in that region has never been credit cards, either corporate or consumer, with the exception of the UK.
‘Virtual multi-currency debit cards are getting more popular and for good reason; they have several positive implications for how you do business. As the name suggests, virtual multi-currency debit cards are payment cards created entirely online that act in the same way traditional, physical debit cards do—just without the physical card. They’re issued by Mastercard or Visa, stored in a secure wallet on your smartphone, and you can use them wherever traditional payment cards are accepted. As a business owner, you can choose the currency and digital assets you need, set spending limits, and define the merchant types where the card can be used.’
For the past decade Virtual commercial credit cards have been growing in popularity (mostly in North America and parts of Europe) for use in accounts payable scenarios, and more recently in provisioning mobile wallets to accommodate travel for non-frequent travelers, contract labor and potential new staff. So as one reads the passage, the author points out the various benefits of virtual corporate debit cards, which in effect mirrors those same benefits related to virtual commercial credit cards, except for the fact that with a virtual debit card there is no working capital benefit since the company is using current accounts held in various currencies. These benefits include ease of creation, reduced paperwork, improved reconciliation, better fraud control and expense management. These are all good things generally, but more in demand as we exit the pandemic and return to regular employee business travel. Worth a quick read as a reminder of card capabilities and new options.
‘Virtual multi-currency debit cards are streamlining payments for suppliers and vendors, and they have several compelling benefits for your business. Read all about the main benefits of multi-currency debit cards for businesses below….Adding virtual debit cards to your business can empower your team and improve your money management.’
Overview provided by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group