Virtual card technology provider Conferma has signed more
partnerships in Brazil, continuing its expansion
into Latin America, business development director of the Americas Andres Rojas
told BTN during the Global Business
Travel Association conference.
Conferma has partnered with travel industry information
systems provider TX Group. Rojas said about 80 percent of hotels in Brazil are
paid by invoice because many corporations are reluctant to issue corporate
cards, and companies like TX Group help corporations track the government-required
invoice. “We signed a partnership to exchange data so we can enrich each
other’s data for the benefit of the customer and the TMC,” Rojas said.
Conferma also arranged a partnership to enable clients of Envision
Tecnologia, a point-of-sale app developer, to generate virtual cards with a
single click, Rojas explained. “It’s in the early stages, as we just signed the
contract, so we still have a lot of integration processes [to complete].”
Conferma and Sabre
also signed partnerships with three TMCs—bringing the total in Brazil to seven—following
Conferma’s partnership with Argo IT, one of Brazil’s largest online booking
tools.
And Conferma is closer than ever to entering the Mexican
market, according to Rojas. The country has a need for virtual cards for both
air and hotel transactions, he said, but its situation is distinct. “The air
content in Mexico is not as fragmented as Brazil’s, but some key players like
low-cost carriers Interjet and Volaris still don’t participate in the [global
distribution system]. There is an appetite and TMCs are looking to have the
solution available on a global basis, so it just makes sense that Mexico is our
next country, as it’s the second largest economy in Latin America.”
Sizzling Sector
The virtual card sector has been heating up for the past
four months. Card issuer BMO
released its own virtual card product, and U.S.
Bank clients can request and receive virtual cards on their smartphones. American
Express Global Business Travel’s new chief marketing officer, Cindy
Allen, and Kathy Burns plan to launch a
beta customer for their virtual card solution, PayForTrip, in August.
Despite the competition, Conferma does not anticipate market
saturation. “It’s a validation of what we’re doing," Rojas said. "We’re
just seeing the tip of the iceberg for the demand for virtual cards.”
Among suppliers, Choice
Hotels International has announced its “enhanced support of virtual card”
solution to end virtual cards’ biggest hindrance, faxing authorizations, which
has left some travelers
stranded. Choice’s solution was “a step in the right direction to make
virtual cards more mainstream,” according to Rojas.
Choice's move followed the release of global trade association
Hotel Technology Next Generation’s Virtual Payment Cards Specification, which
also aims to help hotels identify virtual cards in order to process them
efficiently and end the need to fax reservation authorizations.
Rojas said making virtual card use more seamless requires a
joint effort of TMCs, card providers, banks and virtual card providers to ensure
hotels understand the product. “A virtual card is just like a regular card. … It’s
a matter of getting hotels familiar with the process,” he added.
Rojas said a need for virtual cards for rental cars is sprouting,
though that sector is the trickiest. “The technology is there to work with
cards. It’s just a matter of getting those specific requirements for the car
industry so they can fully adopt a virtual card,” Rojas added.
More travel managers are aware of single-use virtual cards,
and usage has increased, according to a recent GBTA and U.S. Bank study.
“That’s what I’ve seen at GBTA, and that’s the direction
that we’re heading,” Rojas said. "Virtual cards are becoming the norm, not
only for hotels but for air and car. People are more and more aware of … the
benefits they bring at all levels.”