What are Virtual Cards?
Virtual cards are unique, electronically generated payment card numbers with standard 16-digit formats, expiration dates, and CVV codes that exist purely in digital form. Unlike physical plastic cards, virtual cards are created instantly through financial institution apps or websites and are linked to underlying funding sources such as credit card accounts or bank accounts.
These digital payment credentials are increasingly integrated with digital wallets like Apple Pay and Google Pay, creating significant opportunities for banks to modernize their lending offerings.
What are the latest virtual card adoption trends in 2025?
Virtual card adoption has accelerated dramatically in 2025, with 42% of U.S. consumers using virtual cards in Q1, and 65% indicating likelihood to use them within the next year. The growth is primarily driven by security concerns, as 36% of consumers who have experienced fraud are now more likely to use virtual cards. The commercial sector is leading this expansion, with analysts projecting that by 2025, 80% of the virtual card market will be B2B payments, driven by corporations and governments issuing cards for supplier and travel expenses. The U.S. virtual card volume is expected to rise from approximately $531 billion in 2024 to $662 billion in 2025, while global usage is set to triple past $5 trillion.
What opportunities and challenges do banks face in virtual cards?
Virtual cards represent a significant market opportunity for banks, with the B2B virtual card market expected to reach 80% of the total $662 billion U.S. market by 2025. However, banks face intense competition from fintech providers who can deploy virtual card solutions with greater speed and flexibility. The primary challenge for traditional banks lies in their legacy technology infrastructure, which creates complex integration requirements when implementing new payment solutions.
While fintech companies can build virtual card platforms from the ground up using modern APIs and cloud-native architectures, banks must navigate existing core banking systems, compliance frameworks, and multiple vendor relationships. This technological burden significantly extends development timelines and increases implementation costs. Fintech competitors can launch virtual card products in months, while banks often require years to achieve similar functionality through their traditional development cycles. Additionally, banks must balance innovation with regulatory requirements and risk management protocols that fintech companies may not face to the same degree, though some customer education challenges also exist.
How can Jifiti’s virtual card solution help banks capture digital wallet opportunities?
Jifiti’s lending platform enables banks to seamlessly deploy their loan programs through leading digital wallets like Apple Pay and Google Pay using virtual card infrastructure. With Jifiti’s Tap Now, Pay Laterâ„¢ technology, banks and lenders can easily deploy their loans via any of the leading digital wallets, such as Apple Pay, enabling them to scale their loan volumes, convert more customers from ‘lend’ to ‘spend’ and capture market share at the point of sale.
The solution requires zero merchant integration and can go live within hours, eliminating costly point-of-sale integrations and staff training requirements. Customer applies for financing, gets approved in real-time, and is immediately issued a virtual card. The customer easily adds the virtual card to their Apple Pay or Google Pay at the click of a button. This white-labeled platform allows banks to maintain their brand identity while offering customers the convenient tap-to-pay experience they expect, creating higher credit utilization rates and increased wallet presence for financial institutions.
Key takeaways
- Virtual cards represent a rapidly growing market opportunity, with B2B adoption expected to reach 80% of the total virtual card market by 2025, but banks face intense competition from agile fintech providers who can deploy solutions faster
- Traditional banks face significant technological hurdles in virtual card deployment due to legacy infrastructure constraints, while fintech competitors can leverage modern architectures to launch solutions faster and more cost-effectively
- Development timelines represent a critical competitive disadvantage, as banks often require years to implement virtual card functionality that fintech companies can deploy in months due to regulatory requirements and complex integration needs
- Jifiti’s zero-integration virtual card technology allows banks to quickly deploy lending programs through digital wallets, converting approved loans into spendable funds that customers can access via tap-to-pay functionality
