Summary
A recent report reveals that more US consumers are turning to virtual cards as a response to increasing payment security concerns. With fears of fraud and data breaches, 42% of consumers had used a virtual card in the last six months, with 65% considering it in the next year. The surge in virtual card adoption is largely driven by those who’ve previously fallen victim to fraud.
Virtual cards offer unique one-time-use numbers tied to a consumer’s actual credit or debit account, significantly reducing the risk of fraud. Users have reported enhanced control and greater flexibility over their purchases, especially amongst younger demographics like Generation Z and millennials.
Key Points
- 42% of consumers used a virtual card in the past six months, with 65% open to using one soon.
- The shift to virtual cards is driven by a need for better security and control over spending.
- Virtual cards are primarily used for online purchases and subscriptions, allowing for one-time use to prevent fraud.
- Younger generations, especially 62% of Gen Z and 57% of millennials, lead the way in virtual card adoption.
- Financial institutions and merchants could benefit from this trend by enhancing customer trust and minimising fraudulent activities.
Why should I read this?
If you’re concerned about online payment security (and let’s face it, who isn’t?), this article shines a light on a crucial shift in how we handle our transactions. Virtual cards are not just the trendy option; they’re becoming a necessary safeguard against fraud. Don’t let yourself get caught out again—read this to understand why everyone is jumping on this bandwagon!
Source: Payment Security Concerns Are Pushing US Consumers to Use Virtual Cards Online
