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Virtual Card Market on Track to Triple by 2030: Here’s What It Means for Global Travel Commerce – Image Credit DerbySoft
A new wave of digital payment innovation is making transactions faster, safer, and more efficient for travel and hotels, virtual credit cards are leading the charge.
The financial systems that underpin travel and hospitality have always been intricate. Multiple layers of intermediaries, a global network of suppliers, and variable settlement terms create a payment environment where speed, security, and accuracy are difficult to achieve at the same time.
Over the past few years, digital payment innovations have emerged to address these challenges, and one in particular is now gaining critical momentum: the virtual credit card (VCC).Market forecasts point to significant growth. Vantage Market Research estimates the global virtual card market will triple by 2030. For an industry like travel—where payments move across borders, pass through multiple systems, and often involve fragmented reconciliation—this technology has the potential to reshape both operational workflows and financial strategies.
Defining Virtual Credit Cards in a B2B Travel Context
At their core, virtual credit cards work much like traditional corporate credit cards, with one defining difference: they exist only in digital form. A VCC is typically issued for a single transaction or for use within a limited time window. Each is assigned a unique number and can be configured with precise parameters such as a fixed spending limit, an expiration date, or merchant category restrictions.
This design offers two important advantages. First, it sharply limits the potential for fraud. If a number is compromised, it becomes useless after the specified transaction or timeframe. Second, it enables transaction-level control, allowing businesses to tie payments directly to specific invoices or bookings.
Traditional corporate cards, by comparison, usually have fixed credit limits, are reused for multiple purchases, and often circulate among multiple departments. This structure can make it more difficult to track individual transactions and increases exposure if card details are misused.
Why This Matters in Travel and Hospitality
Travel payments are particularly complex because they frequently involve:
- Cross-border transactions with currency conversions.
- Multiple intermediaries between the booking source and the hotel or travel provider.
- Variable settlement timelines depending on market, contract, and channel.
- Operational silos between reservation systems, payment platforms, and accounting tools.
This complexity increases the likelihood of delayed settlements, mismatched records, and exposure to fraud.
VCCs address these pain points by:
- Enhancing security – Limiting a card to a single booking or a short validity period sharply reduces the window for fraudulent activity.
- Providing transaction-level controls – Spending caps and usage rules can be tied to a specific reservation, reducing the risk of overpayment or misuse.
- Automating reconciliation – Linking a VCC to a booking at the time of reservation creates a direct, verifiable connection between payment and service.
- Aligning cash flow with bookings – Payments can be issued in real time as bookings are confirmed, rather than in batch cycles or after lengthy invoice processes.
The Adoption Curve and the Emerging Challenges
VCCs are increasingly being adopted across the hospitality sector as both distributors and hotels seek faster, more secure transactions. However, adoption is not without challenges.
Some hotels are experiencing high processing fees, with certain properties reporting charges of up to 4% for VCC transactions. Over time, these fees can significantly impact profit margins, particularly for high-volume properties.
Operational challenges are also common. Front desk teams are not always familiar with VCC procedures, leading to confusion during guest check-in. Inconsistent training and unclear processes can create inefficiencies, slow down service, and result in avoidable friction for guests.
These issues highlight the fact that while VCCs solve certain security and reconciliation problems, the benefits can be undermined without careful implementation and cost management.
Addressing the Operational and Cost Barriers
Industry providers are beginning to address these pain points with more integrated and cost-conscious solutions. DerbySoft, for example, has developed its Payment Connector to help distributors and hotels process VCCs with some of the lowest rates available in the market.
The platform also embeds VCC handling directly into the booking workflow, so payment details arrive pre-configured and easy for hotel staff to access, reducing front desk confusion and streamlining reconciliation. This kind of integration aims to balance the security and efficiency benefits of VCCs with the operational realities of running a hotel.
However, no single company can modernize the travel payment ecosystem alone. The value of VCCs is maximized when booking platforms, hotel property management systems, payment processors, and card issuers work together to create a unified data and payment flow.
DerbySoft’s approach reflects this reality, partnering with established payment technology providers like Conferma and Voxel Group to integrate VCC processing across multiple distribution channels. These collaborations help hotels and distributors operate with greater speed and accuracy, while also reducing disputes and fraud risk.
Moving Use to Standard Practice
Virtual credit cards have been present in the travel industry for years, often used by corporate travel agencies or OTAs for select bookings. Historically, their use was more common in high-risk or high-value transactions.
That’s changing. A combination of heightened fraud concerns, increasing cross-border transactions, and better integration capabilities has moved VCCs from being a specialized tool to becoming a routine part of supplier payments. The operational efficiencies and security gains are driving broader adoption across leisure, corporate, and wholesale segments.
The Strategic Implication for the Industry
The shift toward virtual credit cards is part of a wider push to modernize the financial infrastructure of travel. By embedding secure, automated payments into the booking lifecycle, the industry can reduce risk, accelerate cash flow, and strengthen trust between partners.
For many organizations, the decision is no longer whether to adopt VCCs, but how to integrate them into existing workflows without disrupting established processes. As adoption widens, the ability to issue and process VCCs seamlessly through platforms like DerbySoft’s Payment Connector will become an operational expectation rather than a competitive differentiator.
In a sector where margins are tight and transaction volumes are high, virtual credit cards are poised to become a baseline requirement for efficient, secure, and scalable travel commerce.
About the Author
Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation. Duane has held various leadership positions at renowned companies such as Sabre Corporation, Wyndham International, and Hilton Hotels & Resorts, where he has demonstrated expertise in hotel management and marketing strategy. He is known for his strong team-building and competitive analysis skills. Duane is currently based in the Dallas area of the United States.
