Visa and Conferma recently announced the launch of a new range of payment solutions based on a virtual card. Which is the most innovative?
Nicole Flory - The originality of Visa Commercial Pay is in fact based on the use of a virtual cardwhich comes in three forms. Among the three pillars of our new offering, the main innovation is the ability to push a virtual card on a mobile phone. This means issuing a single-use card that can be used as a payment via smartphone. This means that companies, which are used to distributing corporate cards to their frequent travellers, can also offer a means of payment to their employees who travel on a very occasional basis, or to external parties such as consultants. Expenses are set up in advance for a specific period or a specific amount, and then debited directly to the company's account. This centralised payment method gives companies security and visibility, while avoiding the need for employees to advance expenses.
Will this digital means of payment replace the plastic card?
N. F. - Eventually, we can imagine this solution replacing or at least complementing the corporate card. The current situation, best-in-class payment solutions Companies often combine a corporate card to pay for all expenses in advance of a trip, such as plane tickets, with an individual corporate card that allows employees to pay for all other expenses during their travels. This gives good visibility of all these expenses. But what was still missing was this traceability and visibility of expenses incurred during one-off trips, when employees pay for their expenses with their personal cards.
This development is also part of a major trend, namely the dematerialisation of payments?
N. F. - Exactly. And you're touching on another pillar of our offering, which comes in response to the accelerated digitalisation of B2B purchasing. Employees today expect to have the same user experience in their professional sphere as they do in their personal sphere. Our virtual card developments were already in the pipeline before the start of the pandemic, but this one has accelerated that trend. the need for digital payment solutions within companies. With the increased use of teleworking during confinement, employees have had to make occasional purchases of equipment and supplies to equip themselves at home. But the systems currently in place are limited. With our solution, giving a means of payment to an employee away from the company becomes extremely simple. The virtual card offers such flexibility that the company can set it up in advance for a very specific category of purchases.
How does it work in practice?
N. F. - For example, an employee needs to buy a printer for 150 euros. His employer can send him a virtual card for that amount to make the purchase online. Or, if the card is pushed onto a mobile phone, they can go to an office equipment supplier and pay at the checkout with their smartphone. This is the big innovation that Visa is bringing to the market. the only one today to offer The virtual card becomes a genuine paperless means of payment.
This is also useful when travelling on business.
N. F. - The solution we offer on mobile phones can be used to pay hotel bills, for example. The virtual card was introduced a few years ago as a complement to the hotel card, to provide a solution for accommodation expenses. The hotel industry, with its thousands of independent establishments and myriad service providers, made payment by credit card almost impossible. However, current solutions have a limit. While the virtual card makes it possible to guarantee a reservation in advance of a trip, the following limitations apply everything becomes more complicated at check-out timeIn many cases, the establishment will ask to see proof of payment. Until now, the only solution on the market has been to push the image of the card used for payment into the mobile phone so that the employee can show it to the receptionist. But this is only an image, it is not a dematerialised means of payment.
While our virtual card developments were already in the pipeline before the pandemic broke out, the pandemic has accelerated the need for digital payment solutions within businesses.
However, isn't your new range of Visa Commercial Pay solutions primarily a centralised payment solution for travel expenses?
N. F. - In fact, it's the first pillar of our offer. In the manner of a lodged card, our virtual map can be used by travel suppliers. The strength of the embedded card is that it is fully integrated into the corporate travel purchasing chain by being plugged into the travel agency back office. This solution allows the data closest to the invoice, known as level III data, to be transmitted. This is its great advantage. Its limitation is that it cannot be used everywhere, unlike the offer proposed by Visa. On the other hand, our solution can also, like the debit card, convey precise information about employee spending. Our partnership with Confermaa recognised specialist in virtual card management, is part of this approach.
Does this herald the advent of the virtual card as a central solution in the payment architecture, replacing the embedded card?
N. F. - Eventually, the embedded card could be replaced by the virtual card, since it can provide the same functions. But it will start to complement existing solutions. After that, the move to a paperless solution depends above all on the size and maturity of the company. SMEs will find it easier to switch to innovative payment methods. For large companies, integrating these innovative solutions requires a little more time, which is linked to the complexity of their systems.
When will this new offering be rolled out?
N. F. - We are currently in discussions with our issuing customers. The announcement - which was made globally for a service that will be available worldwide - is still recent. Since the unveiling of this new offer, we have received a very positive response, as well as many requestsThese include major banks, but also fintechs. After that, everything will depend on the pace of development among our customers. But all this should not out soonThis is because our Visa Commercial Pay range is in line with current practices, such as the digitalisation of purchasing, the rise of teleworking and changes in business travel.
