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UK Virtual Cards Market Size (2024 - 2029)

The UK virtual cards market is experiencing significant growth, driven by the increasing adoption of digital payment methods in the business-to-business sector. The shift towards virtual cards is largely attributed to their ability to enhance payment automation, security, and organizational efficiency. These cards offer compelling benefits such as automated reconciliation and improved transparency in transactions, making them an attractive option for businesses. The heightened interest in virtual cards presents a substantial opportunity for issuers to strengthen relationships with existing clients and attract new ones by highlighting these advantages.

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Market Size of UK Virtual Cards Industry

UK Virtual Cards Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Medium

Major Players

UK Virtual Cards Market Key players

*Disclaimer: Major Players sorted in no particular order

UK Virtual Cards Market Analysis

The 2020 Covid-19 pandemic and subsequent lockdowns had a significant influence on payments in the United Kingdom. There were significant changes in the way people bought and paid for things, with portions of the economy shut down for extended times and the demand for consumers to stay at home and maintain social distance. Consumers were urged to pay by card when shopping, as evidenced by the fact that 59 percent of consumer payments in 2020 were made by card.

Virtual cards, which offer highly sought-after capabilities surrounding payment automation, are one alternative that is rising on corporate radars. Virtual cards' appealing efficiency is responsible for the exponential increase this payment mechanism is expected to experience over the years. Alternative payment methods are becoming increasingly popular in the UK's business-to-business (B2B) scene since digital channels provide significant benefits over traditional, paper-based programs.

Virtual cards are becoming a popular choice for businesses all around the world. This increased corporate awareness and interest in virtual cards provides a significant opportunity for issuers wishing to strengthen their ties with their business customers. Issuers can position themselves to improve relationships with existing customers and new B2B clients by emphasizing on the many appealing benefits of virtual cards. Virtual Cards are becoming popular in UK regions due to the various advantage it offers. The most compelling reason to switch to the virtual cards is the security in payments it provides. Similarly, Virtual cards can help improve organizational efficiency by allowing payments to be fully automated. They also offer automated reconciliation for invoice or on-demand payments, as well as employee spending, reducing the time and resources needed manually doing these operations. Another benefit virtual cards offer is the transparency in the payments.

UK Virtual Cards Industry Segmentation

Virtual cards are 16-digit card numbers that are generated digitally and linked to an account. Virtual cards can usually be accessed via a smartwatch or smartphone. It's a type of online payment that makes things easier, safer, and smarter for customers than traditional payment methods. This report aims to provide a detailed analysis of the United Kingdom Virtual Cards Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The United Kingdom Virtual Cards Market is segmented by Product Type (B2B Virtual Cards, B2C Remote Payment Virtual Cards, B2C POS Virtual Cards), by End User (Consumer Use, Business Use).

By Product Type
B2B Virtual Cards
B2C Remote Payment Virtual Cards
B2C PoS Virtual Cards
End User
Consumer Use
Business Use
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UK Virtual Cards Market Size Summary

The UK virtual cards market is experiencing significant growth, driven by the shift towards digital payment methods accelerated by the Covid-19 pandemic. As consumers and businesses increasingly favor contactless and automated payment solutions, virtual cards have emerged as a preferred choice, particularly in the business-to-business (B2B) sector. This shift is largely due to the enhanced security, efficiency, and transparency that virtual cards offer, making them an attractive alternative to traditional payment methods. The rise in smartphone adoption and the expansion of digital platforms further fuel the demand for virtual cards, as more consumers engage in online shopping and digital transactions.

The market is characterized by a fragmented landscape with numerous providers offering virtual debit cards, while virtual credit cards remain less common. Companies like Revolut, Monese, Monzo, Starling Bank, and Skrill are prominent players in this space, each contributing to the competitive environment. Recent strategic moves, such as Revolut's acquisition of Nobly POS, highlight the ongoing efforts to expand offerings and cater to specific sectors like hospitality. The professional services industry, particularly for fuel expenses, represents a significant opportunity for virtual card adoption, underscoring the importance of security and automation in handling large B2B transactions.

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UK Virtual Cards Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Driver

    3. 1.3 Market Restraints

    4. 1.4 Porters 5 Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insight on Technologial Adoption in the Market

    6. 1.6 Insight on Various Government Regulations in the Market

    7. 1.7 Impact of Covid 19 on market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 B2B Virtual Cards

      2. 2.1.2 B2C Remote Payment Virtual Cards

      3. 2.1.3 B2C PoS Virtual Cards

    2. 2.2 End User

      1. 2.2.1 Consumer Use

      2. 2.2.2 Business Use

UK Virtual Cards Market Size FAQs

The UK Virtual Cards Market is projected to register a CAGR of 8% during the forecast period (2024-2029)

Revolut, Monese, Monzo, Starling Bank and Skrill are the major companies operating in the UK Virtual Cards Market.

UK Virtual Cards Report Snapshots

UK Virtual Cards Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)