United Kingdom Virtual Cards Market Insights Forecasts to 2033

• The Market is growing at a CAGR of 7.9% from 2023 to 2033
• The U.K. Virtual Cards Market Size is Expected to Hold a Significant Share by 2033

The United Kingdom Virtual Cards Market is anticipated to hold a significant share by 2033, growing at a CAGR of 7.9% from 2023 to 2033. The growing online payments and increasing use of virtual cards in businesses are driving the growth of the virtual cards market in the United Kingdom.       

Market Overview

Virtual cards are a payment method that is virtual rather than physical. These are the digital cards available online and are used to carry out online transactions. They can play a key role in streamlining business payments to suppliers or vendors, offering significantly improved security controls for businesses, and minimizing the risk of fraudulent payments and maverick spending. Issuers looking to deepen their relationships with business clients have a great opportunity due to the growing corporate awareness and interest in virtual cards. The increasing need for an additional layer of security like tokenization in the digital payment gateway system, is expected to fuel the need for virtual cards. Merchants can transport data between networks while safeguarding sensitive client data by incorporating tokenization. Tokenization technology within virtual cards offers multiple benefits to both businesses and customers, such as a better user experience, and reduced costs of protection. With an increasing number of businesses being digitalized, virtual cards are increasingly becoming the preferred method of payment in various markets ensuring safety and security for the customers.   

Report Coverage

This research report categorizes the market for the UK virtual cards market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the virtual cards market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the virtual cards market.  

Driving Factors

The adoption of smartphones along with the integration of innovative technological advancements such as 5G within smartphones are likely to drive the UK virtual cards market. Tokenization technology within virtual cards reduces e-commerce fraud are significantly propels market growth. The encouragement by the governments to the companies to provide secure payment solutions is contributing to driving the market. The increasing utilization of virtual cards as a payment method for transparency and enhanced security by consumers and various institutions is anticipated to drive the market.

Restraining Factors

The ever-increasing risk of cyber-attacks and fraud associated with digital payments are hindering market growth for virtual cards. Further, limitations like connectivity and technical issues are restraining the market UK virtual cards market.

Market Segmentation

The United Kingdom Virtual Cards Market share is classified into card type, product type, and application.

• The credit card segment dominated the market with the largest market share during the forecast period.

The United Kingdom virtual cards market is segmented by card type into credit card and debit card. Among these, the credit card segment dominated the market with the largest market share during the forecast period. Credit cards are provided by banks and other fintech businesses. Customers can purchase a variety of services on credit without having to pay cash by using credit cards. The increasing concerns about corporate fraud are surging businesses to switch to regulated, centralized, and easy-to-use payment methods like virtual credit cards are likely to drive market growth.

• The B2B virtual cards segment dominates the market with the largest revenue share in 2023.

Based on the product type, the United Kingdom virtual cards market is divided into B2B virtual cards, B2C remote payment virtual cards, and C2B POS virtual cards. Among these, the B2B virtual cards segment dominates the market with the largest revenue share in 2023. Businesses are using virtual cards in their B2B payment processes to enhance cash flow, boost security, and facilitate Accounts Payable (AP) automation instead of depending on antiquated methods. The adoption of virtual cards in businesses is positively influencing market growth.  

• The business use segment accounted for the largest revenue share of the United Kingdom virtual cards market in 2023.       

Based on the application, the United Kingdom virtual cards market is divided into business use and consumer use. Among these, the business use segment accounted for the largest revenue share of the United Kingdom virtual cards market in 2023. Businesses utilize virtual cards to make corporate travel reservations and pay employee expenditures. The increasing number of startups that support corporate credit cards or virtual credit or debit cards, help companies cut expenses associated with payment processing, enhance cash management, and lessen their exposure to check fraud.           

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the UK virtual cards market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Monzo
• Revolut
• Monese
• Skrill
• Starling Bank
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2021, Revolut announced the acquisition of highly rated ePOS software provider Nobly POS (www.noblypos.com) to expand its offering to serve the restaurant and hospitality sectors.

• In April 2021, UK-based banking challenger Monzo recently revealed that it has added new features for its customers’ connected accounts and virtual cards.

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Virtual Cards Market based on the below-mentioned segments:

United Kingdom Virtual Cards Market, By Card Type

• Credit Card
• Debit Card

United Kingdom Virtual Cards Market, By Product Type

• B2B Virtual Cards
• B2C Remote Payment Virtual Cards
• C2B POS Virtual Cards

United Kingdom Virtual Cards Market, By Application

• Business Use
• Consumer Use