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As summarised by Jason Lalor, Conferma CEO, “In some ways, we’re probably living through a period of revolution in terms of where payments are going. Think about yourself as a consumer and how you go about your daily life and how payments have dramatically changed.”
As part of episode one of The Payments Insider Podcast, we sat down with Jason to ask, with so many options available to businesses – what’s next for payments?
Virtual card adoption will increase
Virtual cards have exploded in popularity over recent years. In fact, Conferma’s Growth Ignition Index Report, which surveyed over 400 financial decision makers globally, found that 88% of businesses are either currently using virtual cards or are actively considering it.
With B2B payments reaching $110 trillion each year, commercial leaders will be acutely aware of the complexities that this brings. Businesses looking to grow must find ways to drive efficiency and embed payments into their operations to maintain a competitive edge.
Virtual cards provide a solution. Offering security, control, and centralised data, virtual cards can benefit departments across a business. Whether it’s employees struggling with lengthy reimbursement processes, finance teams grappling with fragmented spend data, or travel managers battling out of policy spend, the demand for an alternative to traditional payments processes is louder than ever. With virtual card payments already well established and championed by leading corporates in the travel space, we predict that more businesses will turn to this technology to improve operational efficiencies.
Payments strategy will be a key focus for businesses
Payments have always been an inevitable part of doing business, however their role in driving growth has long been overlooked. There are many benefits to adopting a payments-first business strategy, including improved operational efficiencies, reconciliation, consistency, and employee focus.
The Growth Ignition Index Report found that leaders are becoming increasingly aware of the importance of their payments strategy. In fact, 57% of businesses surveyed said they had significantly invested in payment capabilities over the past five years.
Outside of its role in improving operational efficiencies, a payments strategy can determine the success of a businesses’ plans for international expansion. Increasing customer demand was identified as the primary factor that determines business growth by almost half of finance leaders (46%). One key way that businesses can do this is by expanding into new markets. Whilst new markets present significant opportunities for growth, they can also present unique challenges when it comes to cross-border payments. Here, embracing innovative solutions can be what sets businesses apart and lays the foundations for success.
Use cases for virtual cards will expand
As mentioned earlier, virtual cards are well-known for their success in connecting and optimising corporate travel. However, this same technology is now being applied in various other B2B use cases.
Virtual cards can be used anywhere a business makes payment by credit card, making them flexible to each user’s needs. As summarised by Jason, “Travel is an ecosystem that we have helped to connect but we can connect an ecosystem called accounts payable or procurement. We can connect an ecosystem called healthcare. We can connect an ecosystem called insurance – and that’s all driven by the same underlying architecture that drives virtual payments today.”
Operational efficiency has been deemed the most significant hurdle to growth by finance leaders. With businesses already aware of how virtual cards can drive efficiency in the travel space, it makes sense that many will begin looking for new use cases for virtual card payments to maximise value and further centralise their visibility of business spending.
As we look to the future, one thing is clear, payments must change if they are to meet the evolving needs of businesses and employees alike. Success lies in embracing innovation but for businesses to truly thrive, that innovation must start today.
Hear more insights from Jason on the evolution of the payments landscape in episode one of The Payments Insider Podcast.
Listen to the full episode now on Spotify