Visa has introduced a way for customers to tap the multitrillion-dollar commercial payments market.
The Visa Commercial Solutions (VCS) Hub, announced Thursday (Oct. 3), is designed to help financial institutions and businesses efficiently access a range of commercial payment solutions, “complementary capabilities and integrations into a range of FinTech services,” Visa said in a news release.
“Commercial payments represent a $145 trillion market opportunity globally, but existing platforms tend to be targeted to, or specialized across, a specific use case or segment,” the release said.
“So, users often have to go to disparate environments to access the range of solutions they need. Leveraging Visa’s global network, solutions and partnerships with key FinTech providers, the Visa Commercial Solutions Hub will deliver a unified experience at a large scale.”
Gloria Colgan, head of product for VCS, said the company routinely hears from its customers — and their customers — that they want a seamless way to access and manage commercial payment solutions.
“The Visa Commercial Solutions Hub will enable better visibility and faster decision-making for our customers, all within a sleek new interface designed with them in mind,” Colgan added.
The company said the VCS Hub is moving into an initial pilot phase this month, with a focus on “an enhanced and expanded B2B payables experience.”
Also this week, Visa teamed with the Danish FinTech Cardlay to improve spend management for commercial card issuers, in a collaboration that marries Cardlay’s spend management platform with Visa’s market position, payment network and data capabilities to give clients “fully embedded” commercial cards and expense management solutions.
“The commercial card landscape is rapidly evolving, driven by growing demand for digital solutions, contactless payments, digital wallet integration, and embedded finance,” the companies said in a news release.
“Virtual credit card payments are at the forefront of this transformation, redefining how businesses interact with payment cards and managing spend. Paving the way for a more seamless inclusive financial ecosystem.”
Research by PYMNTS Intelligence shows that the global value of virtual card transactions could grow from about $2 trillion to $6.8 trillion by 2026, signaling an increasing recognition of their simplicity and security when compared to outmoded methods like paper checks.
And virtual card adoption, as covered in a separate PYMNTS report, can bolster financial results, while businesses that aren’t using these cards suffer average revenue losses of 4.6% due to payment uncertainties.
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Read More: Visa Debuts Commercial Payments Hub for FinTech Integration