Progressive changes in the embedded Virtual Card Number (VCN) technology by Mastercard will enable better financial interactions among banks, platforms, and corporates.
Mastercard introduced a new program for its VCN platform, to accelerate the use of embedded consumer-like experiences in commercial payments.
Starting today, banks and platform partners that leverage Mastercard’s VCN no longer need to engage directly with each other to enable virtual card payments. This removes a major bottleneck in onboarding and implementation and removes a lot of bureaucracy from the process.
This way, traditional onboarding processes, which could take months or years, are now dramatically shortened by removing complex contracting and technical vetting. The program makes it easier for ERP platforms, expense tools, travel booking systems, and working capital providers to embed VCN technology into corporate workflows. Therefore, corporate users can make VCN payments within the platforms they already use, reducing friction and improving efficiency.
The initiative is focused on facilitating the adoption of virtual card technology in the $80 trillion serviceable market by making corporate payments as effortless and scalable as consumer transactions. The update makes it easier for banks, platform partners, and corporate users to integrate and use virtual cards in their workflows. It gives banks more opportunities to scale embedded payments, while platform partners enjoy easier integration and reduced effort in offering such. Finally, corporate users will benefit from a smoother, faster, and more user-friendly payment experience with fewer steps.
The virtual card payment market is dynamic and fast-growing. The value of virtual card payments is expected to grow 235% by 2029, surging to $17.4 trillion from $5.2 trillion in 2025. The growth is particularly driven by more businesses and consumers using subscription models and recurring payments for their services. That accelerates demand for seamless, flexible and more secure virtual solutions.
Mastercard’s VCN solutions have significantly improved digital payment methods. The firm has been providing secure, flexible, and efficient alternatives to traditional payment cards for years. Over a decade ago, Mastercard integrated controlled payment number technology into its global processing platform. Since then, a suite of various VCN solutions has been available to businesses.
For instance, single-use VCNs are designed for one-time transactions and become inactive after a single authorization. These virtual cards enhance security by minimizing exposure to fraud and are particularly useful for single-use payments.
Multi-use VCNs, on the other hand, are suitable for recurring payments or transactions with a specific vendor. These cards maintain all the benefits of virtual card offerings while accommodating ongoing business relationships. They can also be configured with dynamic Card Validation Codes (CVC2) and specific usage parameters, offering flexibility for ongoing payment needs.
In Control for Commercial Payments (ICCP) solution enables businesses to create virtual cards with customised controls, such as spending limits, merchant category restrictions, and time-based usage windows. It also reduces the risk of unauthorised corporate spending, providing detailed transaction data.
Mastercard Track Instant Pay streamlines B2B transactions, using machine learning to analyse invoice data and authorise immediate payments. By generating VCNs for approved invoices, the solution accelerates cash flow for suppliers and offers buyers potential rebates, improving overall working capital management.
Mastercard’s VCN tools have facilitated a range of innovative use cases. For instance, in late 2024, Mastercard and NatWest joined forces to launch a mobile virtual card payment tool Approval2Buy – the first service in Europe to use the Mastercard app for mobile virtual cards at points of sale.
By embedding VCN technology into platforms like ERPs and expense management systems, Mastercard enables businesses in different industries to automate payment processes, improve reconciliation, and gain better control over spending. The firm’s continuous innovation in this realm reflects its commitment to meeting the evolving technological and financial needs of businesses and consumers.
