Summary
A recent report highlights a significant shift among U.S. consumers towards using virtual cards as a response to growing payment security concerns. With the rise of cybercrime, more shoppers are opting for one-time-use virtual cards that help shield their financial information from digital thieves. The PYMNTS Intelligence report reveals that 42% of U.S. consumers have used virtual cards in the past six months, driven largely by fraud experiences.
Virtual cards, existing solely in digital form, provide unique numbers for transactions, reducing fraud risk and enhancing security. Their usage is skewed towards younger and more affluent demographics, but they’re becoming more popular even among “Mainstream Tech” users. This growing trend underscores the potential for virtual cards to transform how consumers manage online transactions.
Key Points
- 42% of U.S. consumers have used virtual cards recently, with 65% likely to use them in the next year.
- 36% of those who have experienced fraud are now more inclined to use virtual payment methods.
- Virtual cards reduce fraud risk through unique, single-use numbers for transactions.
- Usage is particularly high among younger demographics, with 62% of Generation Z and 57% of millennials opting for virtual cards.
- The trend could lead to virtual cards becoming the default choice for online transactions and subscriptions.
Why should I read this?
If you’re concerned about payment security—who isn’t?—this article is a must-read! With more consumers turning to virtual cards to stay safe from fraud, understanding this shift can help you adapt your spending habits and protect your financial information. You’ll get the scoop on current trends and why virtual cards might just be the future of online payments. We’ve done the heavy lifting for you, so don’t miss out!
