How are virtual cards revolutionizing B2B payments?

In a world where financial agility defines business competitiveness, virtual cards are becoming one of the favorite tools to modernize B2B payments.

According to a recent PYMNTS.com report, 42% of CFOs already plan to integrate virtual cards into their payment stack by 2025 for unplanned expenses due to the flexibility they offer. A trend that is also gaining ground in Latin America, driving efficiency, control, and security.

What are virtual cards and why are they so relevant for B2B?

Virtual cards are payment tools issued entirely digitally by the same banks or financial entities that offer physical cards, without the need for a plastic version. The necessary data to make payments is securely stored in the app or on the entity's website.

There are different types of virtual cards:

• Those that have a fixed number, just like physical cards.
• Those that have a number generated directly from the bank's app or website at the time of use. Generally, this type of card can be issued for a single purchase, have a fixed expiration date, or specific purposes like subscriptions, last-minute corporate payments, or expenses abroad.

And the most remarkable feature of virtual cards is that they are issued and activated instantly without delivery times like physical cards. This makes them ideal for sudden needs and for employees who did not already have a corporate card.

Dynamic CVC/CVV: more security in every payment

The dynamic CVC/CVV is a key feature that enhances the security of virtual cards and can be very easily integrated into different card business types: unlike the traditional CVV (a fixed three-digit code), the dynamic CVV automatically changes every few minutes or seconds, depending on how it is configured. This offers users a much safer payment experience, especially in digital environments where exposure to cyber threats is greater.

This constantly renewing code reduces the risk of fraud and data theft: even if someone gains access to the card number, the CVV needed to complete a transaction will have changed quickly, rendering it useless for unauthorized operations.

More efficiency and fewer risks: the key benefits

The B2B ecosystem is entering a new era, driven by the need for greater digitalization, operational efficiency, and spending control. In sectors where cash flow control and supply chain speed are critical, virtual cards offer the necessary flexibility to handle payments to unusual suppliers, business trips, representation expenses, or the instant, secure, and auditable purchase of supplies.

Moreover, in an environment where cyberattacks and financial fraud are constantly evolving, migrating from checks to digital solutions like prepaid cards is not just an innovation option: it is a business protection decision.

According to a PaymentsJournal report, these are some key trends that further reinforce the relevance of virtual cards:

• Accounts payable automation: the integration of virtual cards with ERP and financial management platforms helps automate processes, reduce manual errors and reconciliation time, as their traceability is immediate.
• Security and fraud prevention: in a context of increasing cyber threats, virtual cards are consolidated as an instrument that strengthens both security, by avoiding cash, and fraud prevention, as it is harder to access card data.
• Granular control: specific limits on amount or number of transactions can be assigned, as well as expiration date, adapting to each need.
• More intuitive B2B user experience: inspired by the end-user experience, corporate payments aim to be increasingly simple, fast, and customizable. This is where virtual cards have a natural competitive advantage.
• Real-time data and analytics: the use of virtual cards allows for the capture of detailed insights from each transaction through data analysis, facilitating better financial and strategic decisions in companies.
• Regional scalability: they allow payments in different currencies and countries, boosting business expansion in Latin America.

According to the PYMNTS report, CFOs also value the ability of virtual cards to optimize working capital, negotiating better terms with suppliers and strategically extending the payment cycle.

How are they applied in Latin America?

The region is moving towards an accelerated adoption of digital B2B solutions, especially in fintechs, e-commerce, logistics companies, travel, and large corporates. In this context, virtual cards allow companies to respond to a payment ecosystem that increasingly demands immediacy, traceability, and flexibility.

At Pomelo, we support the region's evolution by providing the necessary infrastructure to launch and manage B2B virtual cards in a simple, secure, and scalable manner.