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Visa has entered into a referral agreement with virtual card and spend management platform Extend, aiming to enhance digital payment solutions for emerging middle-market companies.
Announced on March 26, the partnership will enable businesses within this segment to leverage virtual cards for spend management, fraud prevention, and financial reconciliation, streamlining their overall payment processes.
Strengthening Digital Payment Capabilities
Many middle-market enterprises are seeking greater control over business-to-business (B2B) payments, a trend driving the rapid expansion of virtual card transactions. Industry projections estimate that global virtual card spending will reach $14 trillion by 2028, a significant rise from $3.1 trillion in 2023.
According to Extend CEO Andrew Jamison, the company’s collaboration with Visa ensures businesses can access cutting-edge payment technology while maintaining their preferred corporate cards and banking relationships.
“Our ongoing relationship with Visa is a key pillar in our effort to deliver powerful payment technology without asking customers to give up the business card they prefer or the bank they trust. With this referral agreement, we look forward to supporting more Visa-issuing banks and their emerging middle-market clients,” Jamison said.
Enhancing B2B Payment Efficiency
Visa’s Vice President and Head of North America Product for Commercial Solutions, Leigh Radtke, emphasized the need for B2B payment experiences to mirror consumer transactions, with enhanced control and efficiency for businesses.
“B2B payment experiences should mirror those we enjoy as consumers and provide businesses the controls and features essential for improving their operational effectiveness. Extend delivers this consumer-like experience in a way that resonates with the emerging middle-market segment in particular,” Radtke stated.
Virtual Cards Driving Digital Transformation
Recent research from Visa’s Growth Corporates Working Capital Index highlights the increasing adoption of virtual cards as a working capital tool, with year-over-year usage rising by nearly 30%.
Virtual cards offer a modernized alternative to traditional corporate cards, reducing the risks associated with manual spend management. Unlike physical credit cards, digitally generated virtual cards allow businesses to set customizable spending limits for one-time or recurring transactions, improving budget control and fraud prevention.
These digital payment tools also integrate seamlessly with enterprise resource planning (ERP) systems, accounting platforms, and expense management solutions, fostering a frictionless financial ecosystem.
Leveraging Data for Efficiency and Fraud Prevention
According to Marcos Gelfi, Vice President and Global Head of Commercial Fraud/Dispute Products at Discover® Global Network, virtual card technology empowers businesses with better data insights and enhanced financial security.
“By leveraging data and defining clear corporate policies, businesses can achieve greater efficiencies and robust fraud prevention,” Gelfi explained.
“The data that you capture is pretty important and can help you negotiate better with suppliers, and help you manage your budget better.”
As digital payment solutions continue evolving, Visa and Extend’s partnership is set to accelerate the adoption of virtual cards, offering greater financial flexibility and risk mitigation for middle-market enterprises.
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