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The European virtual cards market size is estimated to grow by USD 237.20 billion at a CAGR of 27.18% between 2023 and 2028. Contactless payment solutions have gained significant traction in today's digital economy, allowing for seamless and hygienic transactions. With increasing Internet penetration, more consumers have access to online banking and digital wallets, making contactless payments an attractive option. Furthermore, businesses prioritize high customer satisfaction, and contactless payments offer a quick and convenient solution for both parties. By eliminating the need for physical currency exchange and reducing wait times at checkout, contactless payments enhance the overall shopping experience. This trend is expected to continue as technology advances and consumer preferences shift towards contactless and digital transactions.
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The market is witnessing rapid growth driven by advancements in technological solutions such as blockchain and smart contracts, enhancing transparency and security in online transactions. It caters to global businesses and merchants in the E-commerce sector, offering secure cashless payments through VCN technology and biometric authentication. Cyber fraud and cyber attacks are mitigated with robust tokenization methods, safeguarding debit card base and ensuring instant payment capabilities. E-commerce platforms like Alibaba leverage virtual cards to streamline online payments and improve end-user experiences, driving the digital revolution in demographics favoring convenience and efficiency. The market's future lies in innovative E-commerce software solutions that integrate seamlessly with Net Banking services, revolutionizing the way transactions are conducted globally. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
High adoption of contactless payment solutions is the key factor driving the growth of the virtual cards market in Europe. The introduction of payment gateways such as Stripe and Mastercard has simplified the bill payment process. Customers no longer need to carry credit or debit cards. Several retailers use PoS to pay for consumer purchases. Many retailers are using platforms such as PoS that enable virtual payments. Demand for virtual cards is likely to increase as the payment infrastructure is well developed. The growing need for faster checkout at retail outlets, effective information management among retailers, and growing interest in secure payments are the factors contributing to the growth of the European virtual card market during the forecast period.
Moreover, the growing adoption of NFC-enabled payment solutions and the availability of contactless payment PoS and payment options are expected to drive the market during the forecast period. The evolution of technology and the availability of NFC-based devices have further expanded the consumer base for NFC transactions and payment gateways in retail or brick-and-mortar stores. Hence, the adoption of contactless payment gateways is expected to drive the growth of the market in focus during the forecast period.
Growing new developments is the primary trend in the Europe virtual cards market. The virtual cards market in Europe market is witnessing several recent developments. For instance, in September 2020, Marqeta announced that it had launched physical and virtual credit cards for Berlin-based fintech, Vanta, through Vantas mobile app and website.
Similarly, in December 2020, Barclays announced it had launched a new platform Barclaycard Precisionpay Go, for virtual card payment for customers. Such developments are expected to drive the growth of the virtual cards market in Europe during the forecast period.
Popularity of mobile payments is a major challenge to the growth of the virtual cards market in Europe. Mobile payments are regulated monetary transactions that are facilitated by mobile devices. The mobile payment ecosystem includes mobile money, mobile wallets and application-based payments, and other financial technologies. The use of mobile payments has been increasing over the last few years, owing to advances in telecommunication infrastructure and the high penetration of smartphones across the region. Users must show their mobile wallet over payment terminals to complete mobile payment transactions. Mobile payments have an additional layer of authentication, which includes fingerprint scans and facial recognition, using underlying smartphone hardware.
Moreover, the additional layer enhances the security of mobile transactions. The number of mobile payments is expected to increase during the forecast period. Banks are also launching mobile payment services to benefit from the increasing number of mobile payments and cashless transactions. The rising number of mobile transactions is a challenge to the market in focus, which will hinder the growth of the virtual cards market in Europe during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aion SA: The company offers virtual card solutions such as Google Pay with Aion Bank to pay seamlessly online, via apps.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the B2B virtual cards segment will be significant during the forecast period. The B2B virtual cards segment dominated the virtual cards market in Europe in terms of value in 2022, owing to a surge in real-time digital disbursements in mobile platforms aided by the increased penetration of the Internet in the region.
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The B2B virtual cards segment was valued at USD 19.20 billion in 2018. Owing to the increase in the usage of virtual cards, there is a big opportunity for suppliers to generate and track potential leads, offering further suppliers a tremendous opportunity to establish relationships with their business clients. It also assists the vendor in better positioning themselves to strengthen relationships with existing customers and potential B2B clients by accentuating the various compelling characteristics of virtual cards.
For instance, egabi, digital services company, and MasterCard announced their partnership in April 2023, to expand access to digital lending solutions across Eastern Europe. Thus, such innovations are expected to fuel the demand for B2B virtual cards, which are anticipated to drive the growth of the virtual cards market in Europe during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Virtual Cards Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast
Gift Card Market Analysis North America,Europe,APAC,Middle East and Africa,South America - US,Australia,Japan,UK,Germany - Size and Forecast
Mobile Card Reader Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, India, Japan, UK - Size and Forecast
The market is evolving rapidly with technological advancements and the rise of M-commerce, catering to millennials and emerging economies seeking financial inclusion. Virtual cards offer solutions to mitigate E-commerce losses and corporate fraud, especially in the debit card market and credit card segment. Leading players like Adyen, Billie, and Starling Bank are pioneering innovative business models with personalization and competitive intelligence in segmental shares. Enhanced financial literacy and increased consumer confidence drive adoption among net banking users and users of mobile banking, enabling robust credit assessment and fostering decentralized financial systems. The market's future lies in leveraging virtual credit cards for secure transactions, thereby reshaping the landscape of digital payments globally.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.18% |
Market growth 2024-2028 |
USD 237.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.0 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aion SA, Apple Inc., Bank of China Ltd., Barclays PLC, Bharti Airtel Ltd., bunq B.V., Capital One Financial Corp., Deutsche Lufthansa AG, Global Payments Inc., Klarna Bank AB, Marqeta Inc., Mastercard Inc., Monese Ltd., Paysafe Ltd., Qonto, Revolut Ltd., Sabre Corp., State Bank of India, Stripe Inc., and WEX Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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