Extend payment terms while helping suppliers get paid on time.
Key takeaways
- Virtual cards are transforming B2B payments, offering enhanced control, automation and visibility for finance teams
- J.P. Morgan virtual card solutions help businesses unlock working capital, reduce fraud risk and modernize supplier relationships
- As adoption accelerates, virtual cards are becoming a foundational tool for strategic decision-making and operational efficiency
The way businesses approach payments is changing at a rapid pace, driven by the need for greater control, transparency and efficiency. As this digital transformation accelerates, corporate finance teams are seeking solutions that are embedded and scalable. Virtual cards are an excellent solution for B2B payments, helping to unlock working capital and bring structure to spend categories.
Why virtual cards are a strategic advantage
Macroeconomic pressure, evolving regulation and digital transformation are reshaping how businesses manage financial operations. While digitization has advanced, many enterprises continue to rely on legacy systems, which can limit agility and visibility in B2B payments. A virtual card is a digital payment card used for transactions, offering companies enhanced security because a unique card 16-digit card number and expiration date can be generated for each use.
Some key drivers for virtual card adoption are:
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Liquidity and working capital pressures: Ongoing margin pressure and tighter liquidity conditions create the need for cash flow optimization and extending days payable outstanding (DPO) without compromising supplier relationships.
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Supply chain resilience: Geopolitical tensions and disruptions have exposed vulnerabilities, making scalable, digital-first payment solutions essential.
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Regulatory evolution: Initiatives like the Payment Services Directive 2 (PSD2), PSD3 and mandatory e-invoicing are pushing for greater transparency and innovation in digital payments.
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Sustainability and ESG: Digitizing B2B payments supports sustainability goals by reducing paper usage and improving auditability.
“The conversation around B2B payments has shifted. It’s no longer about process efficiency—it’s about strategic advantage.”
Karen Ions
Head of Commercial Card, J.P. Morgan
Solving for B2B payment pain points
Despite advances in automation, many payment processes remain fragmented, manual and difficult to reconcile. Traditional methods like bank transfers can lack the flexibility and control needed for today’s complex supplier ecosystems.
Common issues with B2B payments:
- Manual reconciliation and approvals slow down processes
- Limited visibility into spend and cash flow
- High exposure to fraud and misuse
- Poor supplier experience and delayed onboarding
- Lack of integration with ERP and procurement systems
- Inconsistent data capture limits analytics
Virtual cards address these challenges with a digital-first approach, offering built-in controls, enhanced visibility and seamless integration with existing systems. Finance teams can issue purpose-specific cards, configure parameters and automate reconciliation, reducing risk and improving data quality.
94%
of firms using virtual cards say their transactions are faster, more detailed and more secure.1
Virtual cards empower finance teams to:
- Strengthen controls around spend
- Improve transaction data quality
- Streamline reconciliation
- Reduce operational risk
- Enhance visibility across payment workflows
This intelligence transforms payments from a transactional necessity into a strategic capability. Businesses gain flexibility in payment timing, supporting working capital objectives and ensuring timely supplier payments. Payments move from a back-office task to a catalyst for financial and operational growth.
With these advantages, virtual cards unlock important benefits for businesses:
Use single-use or restricted cards to limit misuse and enhance security.
Capture enriched data at the point of payment, streamlining matching and reducing manual effort.
Set limits, expiry dates and merchant categories to support policy controls and reduce maverick spend.
Key use cases for virtual cards
Virtual cards are increasingly being used to manage high-volume and high-friction spend across the enterprise. From supplier payments to digital advertising and insurance disbursements, they offer a flexible and data-rich way to control costs.
Six high-impact use cases:
Long-tail operational spend:
Cover ad hoc or departmental spend with better visibility and policy enforcement.
Embedded supplier payments:
Automate policy-aligned payments directly from ERP and procurement platforms.
Emerging industry-specific payments:
Instantly issue virtual cards for direct use in healthcare or fleet operations.
Travel intermediaries:
Enable timely payments to airlines, hotels and other suppliers with full control.
Meetings events:
Control budgets and simplify reconciliation with single-use cards for each event.
Digital advertising spend:
Manage campaign budgets with precision and prevent overspend.
Dispelling common myths about virtual cards
Despite growing adoption, assumptions about virtual cards still exist. These misconceptions often stem from legacy experiences or a narrow view of their capabilities. In reality, today’s virtual card platforms are built for scale, integration and strategic value.
| Myth | Reality |
|---|---|
| Suppliers won’t accept them | Acceptance is growing, especially with faster settlement and better remittance data |
| Integration is too complex | Modern APIs enable ERP and procurement platform integration |
| Expensive for suppliers | Many suppliers value faster settlement, better remittance data and reduced admin effort |
| Hard to control at scale | Granular controls like spend limits and expiry dates offer strong oversight |
| More vulnerable to fraud | Single-use numbers, merchant restrictions, and controls make them one of the most secure ways to pay |
The road ahead: Scaling for the future
Staying ahead in payments innovation has never been more important, but navigating future payments strategies doesn’t have to be overwhelming. J.P. Morgan offers insights, established industry experience and tailored solutions to help you prepare for future growth and support long-term success.
Ready to modernize your payment strategy? Discover how virtual cards can help your business prepare for future growth.
References
1 Mastercard. The State of Commercial Card Acceptance 2025. Mastercard Corporate Solutions, 2025; Boosting business efficiency: The corporate guide to virtual cards. 2024.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
