Virtual Cards Are Gaining Ground. Here’s What Banks Must Do Next
By Liz Froment, Contributor at The Financial Brand
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Executive Summary
- 42% of U.S. consumers used a virtual card in the past six months, and 65% say they’re likely to use one in the next year.
- Many financial institutions still struggle to articulate the benefit from virtual cards, focusing marketing efforts on features or tech capabilities that don’t resonate with consumers
- To encourage adoption, bank marketers need to tell stories that match consumers’ real word needs. Personal, intuitive and timely messaging can help shift virtual cards from niche financial tools to an everyday habit.
Virtual card adoption is rising fast as digital wallets become a core part of how consumers shop and pay. According to PYMNTS/Elan, 42% of U.S. consumers used a virtual card in the past six months, and 65% say they’re likely to use one in the next year.
This shift highlights growing comfort with digital-first payments. But while usage is climbing, many banks and financial institutions still struggle to explain why virtual cards matter and how consumers can benefit from them. Instead of showcasing how they can simplify everyday tasks, marketing efforts often focus on features or technical capabilities that don’t resonate with most users.
To drive broader adoption, banks need to shift from product-focused messaging to consumer-centered storytelling that makes virtual cards feel useful, safe, and familiar.
Want more insights like this? Check out Elan’s content portal: Credit Card Issuance: Strategies & Solutions
The Growth of Virtual Cards Among Consumers
A virtual card works like a credit or debit card but only lives in digital form. Instead of using a static number, it can generate temporary or single-use numbers for specific purchases — offering added protection against fraud and tighter control over spending. Many can be instantly issued, added to a mobile wallet, and used right away.
What’s driving virtual card adoption? For many consumers, it comes down to control and convenience.
According to a PYMNTS/Elan study, nearly 75% of consumers say they prefer using virtual cards in at least one payment situation. About a quarter have used a one-time card number for a single purchase. Others rely on virtual cards to manage subscriptions, set up recurring payments, or issue store-specific cards — giving them more oversight and flexibility in how they spend.
Digital wallets play a big role in this shift. About 65% of adults say they’ve used a digital wallet in the last month. Among tech-savvy consumers, 27% say digital wallet integration was the main reason they used a virtual card in the last six months.
“As more customers adopt Apple Pay, Google Pay, and tap-to-pay, virtual cards feel familiar and not foreign,” says Sam Miller, CEO and co-founder of Kasheesh, a digital payment platform. “That growing comfort, combined with added security, instant access, and real-time control, is a key driver in customer adoption.”
Reusable virtual cards stored in digital wallets are becoming an option for everyday spending. “Instant access and seamless digital onboarding help customers start spending immediately, accelerating engagement and building long-term loyalty,” says Prashant Shah, VP of product management at Galileo Financial Technologies, a financial technology platform. “Galileo client data shows the impact of virtual cards — boosting activation rates by 15%, transaction volume by 23%, and revenue per account by nearly 20%.”
With virtual card use on the rise, so are expectations for ease, control, and convenience. Consumers want tools that feel easy, familiar, and useful in everyday situations, whether shopping online or protecting themselves from fraud.
How Banks Can Meet Rising Consumer Expectations
Virtual cards are no longer a novelty. So, banks and financial institutions face a new challenge: explaining the value clearly and quickly. Many still rely on technical descriptions or product specs, missing the opportunity to show how virtual cards solve real-life problems.
Dig Deeper
- What Comes After Tap to Pay? Why Bank Leaders Should Prioritize Virtual Cards
- Success in Digital Onboarding Requires More Than Just Speed and Convenience
- Yes, You Can Compete with the Major Card Issuers. But It Takes Creativity and Focus.
“Financial institutions are positioning virtual cards as a secure, fast, and flexible alternative to traditional physical cards,” says Richard Winston, global industry lead for financial services at Slalom, a global business and technology consulting company. “Because it’s often confusing to consumers — banks attempt to reduce adoption friction by framing virtual cards not as a new or novel product, but as a natural extension of digital banking.”
That subtle shift matters. Rather than overwhelming users with product features, banks are tying messaging to relatable use cases and behavioral nudges, like suggesting a virtual card when checking out a new website or promoting it as a safer way to manage free trials.
“Subscriptions are the most commonly highlighted use case,” says Winston. “Users are encouraged to use virtual cards to gain control — such as pausing a card to prevent unwanted renewals or preventing charges after free trials.”
This approach helps hesitant users build trust and turn a trial into a habit. “The messaging for adoption of virtual cards needs to be simple: smarter, safe, and digitally ready. This anchors the virtual card as an extension of something consumers already understand (a credit or debit card) but with digital-native advantages,” Rahul Chawda, Product Manager at Mastercard, tells The Financial Brand. “Getting users from initial interest to regular usage really comes down to building trust and making the experience feel effortless.”
Other tactics like instant issuance, automatic activation in a phone’s digital wallet, and automated usage reminders can also help keep virtual cards top of mind. The key is making the card feel ready, relevant, and rewarding at the exact moment a consumer needs it. Aligning messaging with behavior helps banks turn virtual card use from a feature to a familiar habit, something consumers can use as a natural part of their everyday financial lives.
Customizing Messaging by Audience
Virtual cards can appeal to consumers across broad spectrums. However, banks must adapt their messaging to connect with different user segments, from digital-first early adopters to more cautious, mainstream users.
Tech-savvy users want instant access and intuitive design, while mainstream users may want more guidance, reassurance, and education. The most effective strategies meet consumers where they are with messaging that fits their habits, preferences, and digital comfort level.
“For younger users, the message has to be fast, clear, and instantly relevant,” says Chawda. “They don’t want to read through long descriptions, they want to see how it works. So, in this case, short videos, app demos, and mobile push messages get straight to the point.”
Others respond better to approaches that focus more on building trust. “Mainstream or less digital audiences respond better to assurance-oriented messaging — emphasizing “peace of mind,” “fraud protection,” and “safer than your physical card” helps overcome hesitation,” says Winston. “These groups are often reached through email education campaigns, bank branch interactions, and customer service reps trained to introduce the feature during calls or troubleshooting sessions.”
Banks can also build stronger engagement by tying messaging to specific consumer behaviors. Shah notes that when virtual cards are presented as an easy way to manage everyday spending like subscriptions or rideshares and made instantly usable through mobile wallets, they’re more likely to become a part of users’ regular financial routines. Framing virtual cards around convenience and lifestyle fit can help consumers see their value.
“At the end of the day, the key is meeting people where they are,” notes Chawda. “Whether it’s through a tap on a phone screen or a conversation at a branch counter, the message should feel like it was made for them — not just for the product.”
Where Banks Go from Here
Virtual cards are gaining traction because they can make everyday payments feel easier, safer, and more in tune with how people already spend. But adoption isn’t automatic.
To build lasting engagement, banks need to move beyond technical features and tell stories that match real-world needs. When messaging feels personal, intuitive, and timely, virtual cards can shift from a niche financial tool to any everyday habit.
