Business-to-business (B2B) virtual card technology is the logical evolutionary step for business and suppliers to facilitate payment methods. Today's businesses still use deposits and checks, which suppliers receive at a later time. B2B virtual card technology would allow them to provide the funding in real-time, allowing even travel businesses to grow better and assess their fiscal situations more accurately.
Banking Technology writes B2B virtual card technology would revolutionize the entire industry of travel. The benefits for all sizes of enterprises are virtual payments made in real time after the guest books a hotel with an online travel advisor, such as Kayak or TripAdvisor. This allows company accounting teams to note the entry quickly and do away with anticipating the date of the check or deposit from the online travel advisor.
By using a single virtual card number as part of its point-of-sale system, businesses also avoid foreign exchange troubles, which include surcharges and currency fluctuation. In a way, it helps secure the value of their profits as the payment goes into the virtual card itself.
World-renowned financial technology company Visa intends to accelerate electronic bill payments and has partnered with invoicing and payment service company Viewpost to develop better technology to ensure B2B virtual card technology replaces traditional sluggish accounting globally.
According to Investor Place, Visa said the "Visa virtual commercial cards" developed in partnership with Viewpost would allow small and medium businesses to use Viewpost's electronic payment capabilities. As described earlier, by using a "secure, one-time Visa virtual account number that includes payment date and amount," the supplier can receive their payments almost immediately.
Visa adds that Viewpost's technology allows both business and supplier to review invoices that were paid and have yet to be paid. Viewpost CEO Max Eliscu believes the technology is available and could be in service this year for the travel industry and other international businesses. Visa said it values its partnership with Viewpost because it presents a "tremendous opportunity for continued market growth in B2B."