The Evolution of Virtual Payments: Virtual Cards and the Decline of Checks

In today's rapidly evolving financial landscape, businesses are continually seeking efficient, secure, and cost-effective payment solutions. Two significant trends have emerged over the past five years: the widespread adoption of virtual card technology and the notable decline in the use of traditional checks.

Adoption and Growth of Virtual Cards

Virtual cards have witnessed significant growth recently:

• Global Market Growth: The global virtual card market was valued at approximately $415.1 billion in 2023 and is projected to reach around $2,403.3 billion by 2032, representing a compound annual growth rate (CAGR) of 21.5%.

• U.S. Market: In the U.S., the virtual card market size was $41.3 billion in 2024 and is expected to grow to $112.7 billion by 2032, at a CAGR of 13.4%.

Decline of Checks

Simultaneously, businesses have significantly reduced their reliance on checks:

• Check Usage Decline: The Federal Reserve reports a significant decrease in check processing, with the number of checks processed declining by over 32%, from approximately 4,389 million in 2019 to roughly 2,978 million in 2024.

Factors Driving Change

Key factors contributing to these trends include:

• Enhanced Security: Virtual cards significantly reduce fraud risks compared to traditional checks.

• Operational Efficiency: Digital payments simplify and streamline financial operations.

• Technological Adoption: Increased familiarity and comfort with digital technologies have accelerated adoption rates.

• Cost Reduction: Virtual cards offer operational cost advantages by reducing reliance on manual processes associated with traditional checks.

Conclusion

Businesses that adapt and adopt virtual payment solutions are positioned to thrive in a digital-first economy, benefiting from enhanced security, efficiency, and reduced operational costs. The continuing shift away from traditional checks toward digital solutions underscores the importance of embracing technological advancements in business operations.

Sources:

• Verified Market Research. U.S. Virtual Cards Market.https://www.verifiedmarketresearch.com/product/us-virtual-cards-market

• Allied Market Research. Global Virtual Cards Market (2024-2032).https://www.alliedmarketresearch.com/virtual-cards-market

• Federal Reserve. Commercial Check Collection.https://www.federalreserve.gov/paymentsystems/check_commcheckcolannual.htm

• PYMNTS. Virtual Cards in B2B Payments.https://www.pymnts.com/news/b2b-payments

Note: All statistics and projections are based on data available up to March 2025.