Not only do Gen Z and millennials in the U.S. embrace virtual cards, but also older age cohorts resort to this innovative payment method if providers manage to raise proper awareness.
A consumer survey published by PYMNTS Intelligence and Elan revealed that more than 40% of U.S. shoppers used a virtual card in the past six months, with 65% saying they’re likely to use this payment method in the year ahead.
The two firms surveyed 2,516 U.S. buyers between Feb. 12, 2025, and Feb. 28, 2025. Among interesting findings, the research discovered that people who have experienced fraud earlier tended to use virtual cards 19% more than average. Unsurprisingly, the payment method was most popular among tech-savvy consumers who prefer digital finance in general. Out of this cohort, 70% of respondents use virtual cards. Most frequently, buyers choose the given method for online purchases.
As for the age groups, Gen Z and millennials lead the adoption rates. However, other generations also show interest in virtual bank cards once they clearly understand how they work and what benefits they gain. This education must be a prerogative for payment providers who aim to promote their virtual product use.
As we know, card networks actively push virtual card solutions to the market. For instance, Mastercard has recently accelerated its virtual card promotion efforts by introducing embedded Virtual Card Number (VCN) technology. This technology significantly reduces bureaucratic processes, complex contracting and technical vetting required for virtual card issuing. The payment provider also launched a mobile virtual card app with tokenised virtual cards for commercial use.
Due to similar innovations, the value of virtual card payments is expected to grow 235% by 2029, surging to $17.4 trillion from $5.2 trillion in 2025. However, the growth may be even more distinctive if payment companies focus on customer awareness, bringing virtual cards further into the mainstream.
Virtual bank cards are digital versions of physical credit or debit cards. They are typically linked to an existing bank account or credit card and function in the same way for online transactions. Unlike traditional cards, virtual cards are generated instantly and can be used for payments before the plastic is shipped.
Besides, virtual cards offer a greater level of security. These card details are not fixed, as it happens with a physical card. Some virtual cards are generated for a single use (like a one-time online purchase) or are time-limited. After the transaction or a set period of time is complete, that card number is no longer valid, but one’s account stays in place. When it comes to subscriptions, virtual cards are a perfect choice for the trial period if you want to avoid auto-billing but may forget to cancel the service until the due date.
Even if virtual card details are exposed or compromised, bank clients don’t need to cancel their actual bank account or give up on their physical card. Instead, they can simply and almost instantly generate a new virtual card with different details all within a banking app.
