Why Virtual Card Use is Surging Among Procurement Leaders
Virtual cards are experiencing a rapid rise in adoption, with fresh research highlighting that businesses across the globe are seeking greater agility and control in supplier payments.
Procurement teams are looking to harness virtual cards in a bid to manage spend, improve efficiency and reduce risk, according to SAP Taulia, a global fintech leader in working capital solutions.
SAP Taulia stands at the forefront of financial technology, transforming how businesses optimise their working capital through intelligent, AI-driven solutions that enhance liquidity and strengthen supply chain operations.
Major corporations including Airbus, Red Bull, T-Mobile and Bridgestone rely on SAP Taulia's robust and innovative technology to optimise cash flow dynamics and unlock strategic growth opportunities, transforming working capital from an operational constraint into a competitive advantage that enables businesses to scale with confidence.
Its latest study highlights that more than 90% of procurement leaders are using, planning to use or are interested in virtual cards—showcasing how digital payments are gaining momentum.
- 45% already use virtual cards
- 28% plan to adopt virtual cards within the next 6-18 months
- 20% are interested in further implementation of virtual cards
SAP Taulia spoke to 170 procurement leaders from 19 countries globally, representing businesses with revenue ranging from US$1bn to US$10bn.
Almost nine in 10 (87%) of those who are using or planning to use virtual cards intend to allocate more than 10% of their company's overall spend to them in the next two years.
Across the EMEA region, 85% of respondents say they'll assign over a quarter of spend to virtual cards, while 54% in the Americas plan to spend the same.
Tackling procurement's pain points
Virtual cards have the potential to help procurement teams tackle a number of persistent pain points, including the onboarding of new suppliers.
More than three-quarters (78%) of respondents told SAP Taulia that it takes more than a month to authorise a new supplier, while two in five said the process exceeds three months.
When it comes to onboarding, the biggest obstacle is the issue of managing risk and compliance (61%), closely followed by gathering supplier information (58%). As such, 41% of procurement leaders say they are extremely likely to use virtual cards for one-time supplier payments.
Danielle Weinblatt, Chief Product Officer, at SAP Taulia says: "Procurement leaders are under increasing pressure to move faster, reduce friction and make better use of working capital. Virtual cards are emerging as a practical, scalable solution to help achieve that.
"What we're seeing in this research reflects the conversations we're having with customers every day – there's a real desire to simplify processes, particularly when it comes to one-time supplier payments and onboarding."
