Payments

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-7-11.webp" alt="M2P Fintech" title="" id="avpoofk1v" width="100%" height="661">Today’s consumers use mobile apps and ecommerce sites for their shopping needs. Right from festive shopping to weekly grocery needs, online is the place to go.In fact, the first online marketplace evolved in the 1990s to buy and sell used goods. And now it has become a necessity, given the current situation. Nevertheless, it paves the way for online fraud as well.Given the right code, anyone can hack and gain access to your card information and relieve you of your funds. So, the question remains: How to make online transactions&nbsp;much safer?Well, fret not! We have got you covered through Virtual Cards.What is a Virtual Card?Virtual cards are <a class="link" href="https://m2pfintech.com/blog/payment-cards-design-made-simple-heres-what-you-need-to-know/">payment cards</a> available only in the digital format. The 16-digit electronic cards come with a custom spending limit and can be instantly issued. They are usually valid for a short period.<blockquote class="block-node" id="qoe6auwbb">The specialty of virtual cards is that your debit or <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit card</a> number or primary account information is not shared with the merchant, thereby shielding you further.</blockquote>In India, virtual cards are limited to eCommerce transactions and can be used only once. However, globally, they are used for online and offline transactions and are available as single-use or multi-use cards.<img src="https://miro.medium.com/max/1400/1*oMH4iJh7mu7R7FfW25U1nw.png" alt="M2P Fintech" title="" width="100%" height="317">Available as a one-time use or as a recurring card<h2 class="heading-node" id="73a2" style="text-align: justify">How do virtual cards work?</h2>In addition to physical cards, banks also issue virtual cards, usually when the customer requests them.A customer who holds a primary account with a bank can apply for any number of virtual cards.To create a virtual card, you need to provide your name, existing debit or credit card number, and card limit. Upon successful OTP verification, you would be shown the cardholder name, virtual card number, expiry date, CVV, and card limit.When you purchase online using the virtual card, PIN and password are sent to your registered email or mobile number. The card will expire as soon as you complete the transaction, and the unused amount will be transferred back to your account.Suppose you haven’t purchased anything within the valid date, the entire amount will be refunded to your account.An extra layer of security and privacy<blockquote class="block-node" id="d0brlx9pn">For every online transaction, a new virtual card number is generated and provided to merchants.</blockquote><img src="https://miro.medium.com/max/1400/1*Kyo4Ll49opChIvJtk7eMRQ.png" alt="M2P Fintech" title="" width="100%" height="317">Even when the fraudsters access the temporary virtual card info, the primary card or the underlying account is not exposed.So, you need not worry about unauthorized charges or a hacker gaining access to your account. Moreover, you can freeze or cancel the virtual card and get your money back.How corporates achieve smarter ops with virtual cards?Melon is a consumer product company that sells trek cycles for adventurers. Meera heads the marketing team, and Krish leads the sales team. It’s no surprise that both the teams use a ton of SaaS subscriptions.It was month-end, and Meera was busy analyzing the marketing budget spends. She suddenly got a call from Rintu, reminding her to reimburse the travel expenses during their H.Q. visit.Another colleague pinged her to pay off the subscription fees. As Meera was quite busy, she shared her card info to them for reimbursement and renewal payment.<img src="https://miro.medium.com/max/1400/1*TeLOCkiZATW4mgqeS6Bq_g.jpeg" alt="M2P Fintech" title="" width="100%" height="317">Offer dynamic spend control and expense categorizationMeanwhile, she noticed that Krish’s teammates were paying their expenses using individual cards. She later learned from Krish that his team has partnered with its bank and a Fintech firm and initiated a virtual card program.<blockquote class="block-node" id="ol4xf6yj5">All team members had their own Digi cards, and Krish controlled the card’s spending limits. From trips to subscriptions, they had cards for each category.</blockquote>Meera thought virtual card as an excellent solution since it gave a 360° understanding of expenses. She discussed it with her team and implemented a new program.What makes virtual cards preferable?These programmable virtual cards offer intact visibility on spending, authorize transactions in real-time, and comes with increased security.Powered by <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">open APIs</a> platforms, they have many defining features that give them an edge over traditional cards.<img src="https://miro.medium.com/max/1400/1*PslqLLEkZHT4K6liBJZo9A.png" alt="M2P Fintech" title="" width="100%" height="317">Virtual card featuresWhat does the future of virtual cards hold?In India, several banks have already collaborated with many fintech partners and have launched many invaluable programs. Globally, virtual cards have also experienced tremendous growth in the past five years and will continue to boom.P.S. For those keen on how virtual cards began, here’s a fun fact —&nbsp;The travel industry was the first to pick up this splendid product. It needed a safe international fund transfer and excellent expense management solution back then.To know more about virtual cards, write to us at business@m2pfintech.com.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

All You Need to Know About Virtual Cards

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8-16.webp" alt="M2P Fintech" title="" width="100%" height="383"><blockquote class="block-node" id="taxe2h50t">UPI transactions clock 1.61 billion transactions worth Rs 2.98 trillion in AugustDigital payments up by 23% with transactions valuing at a record high of $113.4 Trillion</blockquote>Source- Business Standard<blockquote class="block-node" id="osu78ucl8">India will provide approx. 2.2% of the world’s digital payment by 2023 — Pwc &amp; PCI</blockquote>Amazing right! In the race between digital payments vs. cash, the former is definitely taking the lead. Right from a cash-dependent economy to cashless transactions, we slowly see the shift. This trend is now fueled by the pandemic, COVID-19. Starting right from cards to UPI, digital payments have taken over in both online and offline methods. Nevertheless, UPI payments are setting up a record high as 1.61 billion transactions.But this is not the first time that digital payments have seen a spike in our country. The history-defining move of Demonetization brought digital payments to the fore. Many opened bank accounts or started using their bank accounts for depositing their cash reserves. Incidentally, it also prompted many to dust their debit cards.Soon, several incentives and schemes were introduced to encourage this transition. Also, the year 2016 saw a significant milestone with the introduction of UPI in August. Coupled with the availability of the internet, digital payments had the right boost. Starting from grocery stores to street vendors, UPI, and other modes of digital payments had taken root.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-10.webp" alt="M2P Fintech" title="" id="ah9a6k969" width="100%" height="383">It was a great learning curve, with many technology players coming to the forefront. Innovating payments and user experience became a priority. But after a while, the spike plummeted as currency notes and coins rose in circulation.Now, the onset of the pandemic and nation-wide lockdown has made people embrace digital payments. The pandemic has also brought forth a two-pronged result where businesses are going digital, and some are losing their footing. But, the retail section seems to have stayed afloat by going digital. So, what took four years to adopt is now the norm within months of lockdown. With new customers on the rise, merchants are currently searching for tailored and localized payment solutions.COVID has pushed people to adopt online shopping where digital payments rule and cash on delivery is frowned upon. Even those who are tactile by nature are now supporters of online shopping. Online grocery shopping is now on an all-time high with e-commerce spearheading the cause.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-9.webp" alt="M2P Fintech" title="" id="s6b81zced" width="100%" height="383">So, it puts forth the question of how digital payments got back their spotlight?COVID has made people wary of physical contact, so digital payments were the only solution. Also, here are a few more points that answer the above question:<ol class="list-node" id="erdc35dw2"><li>It requires minimal or zero contact. Minimal contact if it is cards and zero contact if paying through UPI or mobile wallets.</li><li>You don’t need to carry a loaded wallet as right from cab drivers to popular stores, digital payments are available.</li><li>Forget rummaging around for change; your card or wallet will let you pay the exact amount.</li><li>It is there 24/7, and you don’t need to spend long hours outside the ATM standing in those social distancing circles patiently waiting for your turn.</li></ol>Recently, a study conducted by The Red Seer Consulting deduced that India’s digital payment will reach Rs.7,092 trillion by 2025. And that is not all; Digital payments are now the favored choice of the millennials. They have gone through a shift of reluctant usage to a must-have tool for every day.To know more digital payments write to us at <a class="link au mg" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a>.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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