Mastercard (NYSE:MA) is initiating a new program to encourage more businesses to adopt virtual cards, aiming to make commercial payments quicker and more simplified. With a focus on embedding virtual card number (VCN) technology into existing digital platforms, the initiative targets enhanced integration with enterprise resource planning (ERP) systems, expense management tools, hotel booking platforms, and other B2B environments. The launch reflects Mastercard’s strategy to create a consumer-style payment experience for corporate users, reducing friction in traditional commercial payments. As digital adoption accelerates across financial services, Mastercard positions its new offering to align with current business needs for speed and automation in financial workflows.
In 2023, Mastercard emphasized digital-first services and began highlighting the potential of virtual cards in B2B transactions. However, adoption remained limited among North American growth companies, with only 3.3% reportedly using virtual cards. The current program signals a shift toward broader implementation, particularly through embedded payments. Earlier efforts focused on partnerships with large financial institutions, but the new approach expands collaboration with platform providers across multiple industries. This expansion aims to make virtual card adoption more accessible to a wider range of businesses and improve operational efficiency.
Why Is Mastercard Focusing on Embedded Payments?
The company is leveraging embedded payments to offer smoother integration across digital platforms. By embedding VCN technology into finance and procurement tools, Mastercard intends to enable real-time issuance and usage of virtual cards. This model reduces implementation barriers, allowing software platforms and banks to adopt the technology without significant development costs. The initiative helps banks access scalable payment solutions and gives B2B platforms a simpler way to deliver embedded payment features to their users.
What Are the Expected Benefits for Businesses?
Businesses using virtual cards through the program are expected to benefit from faster transaction processing and improved financial controls. According to Mastercard, the digital-first approach minimizes manual steps, offering an experience similar to consumer payment systems.
“Corporate users will experience an easier, consumer-like payment experience with fewer clicks,”
the company said. For middle-market companies, this setup could offer enhanced working capital management, particularly by reducing reconciliation time and increasing visibility into spending.
Starting April 1, participating banks will be able to integrate Mastercard’s VCN technology into their partner platforms through a simplified enrollment process.
“Banks will benefit from scalability and have access to more embedded payments opportunities,”
Mastercard stated. Platform partners will be able to offer these services with reduced time to market and limited customization effort. This structure is designed to encourage broader adoption by minimizing entry barriers for both financial institutions and end-users.
The move aligns with a broader industry trend where banks, fintechs, and payment technology providers seek to digitize procurement and accounts payable flows. As eCommerce ecosystems continue expanding, virtual credentials and digital card issuance are becoming key tools in modernizing business finance. Mastercard’s approach aims to meet this demand by embedding services directly into frequently used business platforms. The card network also sees potential in supporting Buy Now, Pay Later (BNPL) models and other flexible spending mechanisms through its platform strategy.
Despite the benefits, virtual card usage remains relatively low among mid-sized firms, highlighting a potential growth area for Mastercard and its partners. According to PYMNTS Intelligence, 56% of CFOs from firms generating $50 million to $1 billion in revenue cited improved working capital management as a clear advantage of using virtual cards.
“The market is virtually untapped, as the data shows that just 3.3% of North American Growth Corporates use virtual cards,”
the company noted. Targeting these segments through embedded technology may help close the adoption gap.
The push from Mastercard reflects an ongoing trend toward automation and digitization in commercial payments. While the technical foundation for virtual cards has existed for years, widespread use has been hindered by integration complexity and lack of awareness. By embedding VCNs directly into partner platforms, Mastercard reduces friction for users and accelerates time to value. For companies considering a shift to digital payment tools, adopting virtual cards through embedded experiences may offer a practical path to modernizing their financial operations. As providers streamline onboarding and usage, virtual cards could become a more common component of B2B payment ecosystems.
