Virtual payments ■ Digital payments – A buyer’s guide


■ There is a lot of new functionality in the virtual payment market from key players. It is continually evolving and, as a buyer it is worth keeping abreast of each suppliers’ innovations.


■ When implementing any new payment tech, communication is crucial with


all stakeholders, certainly executive travellers need to understand why and how to use a new system.


■ Work out where it is best to implement virtual payments such as outside contractors, millennials without credit cards, overseas workers and infrequent travellers.


■ If you have concerns about fraud or data loss with your current payment systems it is worth looking into digital payment solutions.


■ Virtual payments are a good way of managing the maverick traveller since these types of solutions can drive compliance. You can now


restrict the use of unofficial channels and create price caps. Digital payments are often compliant by nature.


■ Digital payment can also be taken from a central account. Executive travellers do not need to go through a post- trip expense management process for approval.


Nick Easen


What has the potential to drive virtual


payments is the control it gives travel buyers. Virtual cards can be capped in terms of value and restricted in terms of use. Expenses can also be consolidated in a centrally managed account. They are the ultimate compliance tool. “Previously, there was no cost control


process for companies, as consultants billed back expenses and received reimbursement, even if they were out of policy. Now virtual payments give companies control,” says Boyce. They can also be used by younger


travellers who do not have a personal credit card, or external consultants who don’t have corporate plastic. Bookings once completed outside of a company’s travel programme can now be con- ducted through a travel management company using virtually generated cards. “When it comes to payments, control is king,” says Hynes.


MOBILE, THE NEXT FRONTIER If you think virtual payments still have a long way to go, mobile payments are also disjointed and in a nascent phase, even though in Europe we are near smartphone saturation point – nine years after they were introduced. The exception is the strength of contactless payment in the UK. “While such terminals are commonplace in Great Britain, the adoption of these terminals has been slower in countries


In association with


“Whatever is adopted in consumer markets also takes a while


before it’s embraced by corporate travellers”


such as Germany and outside larger cities in France,” says Gargagliano. Take Mastercard’s QKr! app: this digital wallet is only available to use in a handful of restaurant chains. Compare this to the developing world, including where the likes of M-Pesa process billions of payments each year. “Mobile payments are quite a new technology and although there is awareness among buyers, they are yet to implement it,” says Amex’s Larocque. “This may be due to a lack of knowledge around the benefits of mobile payment in travel. Yet there is a growing proportion of millennials in the workforce that will drive change.” The introduction of Apple, Samsung


and Android Pay to the UK market last year has heightened interest. This is driving payments in the consumer space, which will eventually trickle down into corporate travel. “People may be purchasing coffee through mobile payments, but items


such as flight tickets will not be purchased with contactless payments just yet. A cultural shift is needed to use these for larger payments, which simply has not occurred yet,” says Concur’s Scolaris. However, app solutions on smart- phones are increasingly incorporating a secure embedded payment element. Once this is done, the payment process becomes invisible to the user. This is already a boon for the traveller. “A good example of this is Uber, where there is no need to actively make a payment, as this is all done for you,” says Fox. “There are more examples of this appearing across different apps.” Truly invisible payments are about automating the process so that travellers do not have to take any action to com- plete a payment. Fintech companies are now exploring virtual account numbers and specific-use payments, which make the most of mobile technologies. The fact is that those travelling on busi- ness will increasingly expect seamless payment and secure experiences. Let’s remember, however, that chip- and-pin was rolled out 11 years ago, and the first contactless cards in the UK came into being in 2007. And whatever is adopted in consumer markets also takes a while before it is embraced by corporate travellers and by managed travel buyers. Virtual payments is a slow-burn industry.●


BBT CORPORATE CARDS SUPPLEMENT 2017 17


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