Corporate prepaid cards are easy-to-use managed payment alternative that allows companies to
-
Implement a tight expense policy
-
Track spends across the company
-
Restrict invalid transactions
- Extract insights through easy reporting
With corporate prepaid cards becoming a go-to option for many businesses, it is seeing an uptick in activity across the board.
Below we explored some of the key trends and innovations around prepaid cards that will help you better strategize its use as we head into 2024.
Trends in Corporate Prepaid Cards
Contactless payments are becoming the first choice
With the launch of UPI, contactless payments have soared to unprecedented levels. The convenience of making payments without the hassle of managing a POS system has come as a refreshing approach. All that the user needs to do is aim at a QR code and make the payment from the mobile device. Also, you can avoid punching in your security code in a machine, thereby improving security.
Between January and June of 2023, India recorded 51.91 BN UPI transactions. Of these 29.15 BN transactions were P2M (peer to merchant). Even without the QR code, cardholders can make contactless payments through PoS machines through tap-and-go mode. It is gaining significant traction in the US, Canada, Australia, and China with nearly 79% of global transactions happening through the contactless option.
XPNS offers contactless payment as an option with its corporate prepaid cards for quick and easy payments.
Virtual cards make maintenance easy
The accelerated adoption of contactless payments has given rise to a new innovative trend – virtual cards. Although it has been around for some time now as a concept, virtual cards were offered as a mainstream option by very few corporate card providers.
Virtual cards offer better security and comfort as compared to managing a physical card. Even if physical cards are damaged, stolen, or lost, it allows users to still make payments using virtual replication of the card. With the virtual card option, users can make business transactions just like using a UPI-based app or mobile wallet.
Millennials choose the convenience of prepaid cards
One thing that millennials are most aware of is ‘debt’. Given the inflation and ever-increasing interest rates, owing money to banks is something that this new generation is refraining from.
Millennials want the assurance of having the money in the account before spending it. The same extends to business expenses. Corporate prepaid cards are a preferred method since the payment option is tailored for them. Since millennials opt for convenience over benefits, companies are transforming their traditional corporate prepaid cards to offer better features. These include enhanced payment transparency with spend reports, streamlined and hassle-free payment options with contactless payments, and added security options with virtual cards.
Corporate prepaid cards are the future
Business expenses are assuming newer forms and faces. Earlier a corporate transaction would be only in the physical world and with reality. It slowly moved to plastic money with credit and debit cards. However, the security threat, legacy process, and prevalence of fraud made payments a task. Corporate prepaid cards emerged as a better alternative for business transactions. Going into 2024, this option will see new innovations with the payment ecosystem shifting to the digital world. We listed some of the trends that the upcoming year has in store for us.
XPNS has been offering these futuristic capabilities through its integrated prepaid cards for businesses. It offers:
-
Seamless, contactless payments
-
PIN-protected transactions
-
Virtual card & app to manage expenses
-
Quick and easy balance management
