Virtual cards are a form of payment tool, and function in principle in the same way as a user’s credit or debit card. What makes virtual cards distinct from a card issued as standard is the inherent level of integrated security. As these card numbers are randomly generated and only exist in a transitory fashion, the risk of fraudsters acquiring the user’s card details are mitigated. Therefore, virtual cards are first and foremost a form of payment detail protection.
In addition to enhanced security of transactions, digital identification and verification provide a significant opportunity for value creation for individuals and institutions. The pivotal role of identity authentication in the financial services industry lies with the ability to establish and verify the identities of customers and employees.
Digital BNPL is aimed at capturing the same benefits as offline repayment schemes; greater transparency and flexibility in payments for customers, without the financial restrictions imposed by credit cards or personal loans. However, unlike in the past, customer uptake is significantly higher when compared to acquiring a credit or a store card, which have typically been limited as solutions. Furthermore, merchants as providers are much more active in participating in digital BNPL ecosystem solutions too. This is thanks to digital BNPL’s unique value proposition, which potentially yields greater benefits for both customers and merchants.