Travel buyers' use of single-use virtual cards rose 7
percentage points year over year to 20 percent, according to a survey released by
the Global Business Travel Association on Tuesday. Familiarity with the
solution also increased, as 39 percent of travel buyers who do not use them
indicated they were “familiar” or “very familiar” with the product, up from
only 23 percent the year prior.
The report, sponsored by U.S. Bank, surveyed 148 travel
buyers, 69 suppliers and 12 other respondents between February 19 and 27.
Those travel buyers who do use single-use virtual cards “tend
to be satisfied” with the product, the survey showed. They report supplier
acceptance as a big challenge, however. Only about half (53 percent) of
suppliers indicated they accept single-use virtual accounts.
Companies that want to implement single-use virtual cards may
have to convince suppliers to accept the new payment type, according to the
report. “Poor communication and management of the change with suppliers can be
big stumbling blocks in launching and maintaining a successful virtual payment
program.”
Corporate cards remain the most common solution, as 90 percent
of buyers use them and 90 percent of suppliers accept them.
Additional Findings
Three-quarters of travel buyers were “satisfied” or “very
satisfied” with their corporate card programs. While only half of respondents
were “satisfied” with the ability of those programs to cut internal costs, that
concern was not their highest payment-program priority. They reported greater desire
to increase security, protection from fraud and misuse, and controls and to improve
compliance.
Central travel accounts were the second most frequently used
form of payment for travel buyers (64 percent), and 75 percent of those
respondents were “satisfied” with the product.
Of the travel buyers surveyed, 82 percent use two or more
forms of payment. Two-thirds use virtual payment in addition corporate cards, and
69 percent of these respondents preferred CTAs.
“The fact that so many travel buyers use
multiple payment solutions suggests that no single payment solution is ideally
suited to meet companies’ business travel expense needs entirely,” according to
the report.