Here is another indication of the growing use of virtual commercial cards in the accounts payable space. As Mercator Advisory Group pointed out in a research report entitled The U.S. Commercial Card Market: A Growing Virtual Reality, the use of virtual card accounts for invoice payments is on a steep growth curve, which is expected to continue over the next several years as the use of paper checks declines. Mineral Tree is establishing an alliance with Visa to integrate their payables platform with Visa’s virtual account solution.
“We are honored to enter into this strategic alliance with Visa,” said BC Krishna, CEO of MineralTree. “It is the latest example of our commitment to provide middle market businesses with market-leading invoice and payment automation solutions that improve efficiency, optimize cash flow, mitigate risk, and support their growth by enabling them to do more with less. Using credit cards for business payables is something our customers want and need.”
Virtual card accounts have gained wider acceptance over the past two years as new digital payables solutions have come to market and card issuers have made a high priority of educating both buyers and suppliers on the value-add associated with this option in their payables suites. This particular payables platform is more targeted towards middle market corporations, generally regarded as under-penetrated for digital payments versus the larger corporates.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
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