Overview • By Rob Gill


the benefits of the product, called Virtual Cards: Accepted, emphasising the ef- ficiency, security and richer data provided by virtual cards. Yael Klein, chief mar- keting officer at Airplus, adds: “We hope above all to get business travel service providers interested in the benefits of payment without a physical card. By ac- cepting virtual payment solutions, the service providers can position themselves as a competent partner in the digital business environment and differentiate themselves from the competition.” Bank of America Merrill Lynch is similarly bullish about the increasing demand for virtual payments. David Voss, head of commercial cards, global transaction services EMEA, says: “The virtual card is a key trend in centralised travel payment technology. By using customised virtual card accounts for each transaction, integrated with a TMC, clients have expanded spending controls and improved data capture, which saves time, improves spending control and reduces reconciliation issues.”


The bank also expects the use of mobile


wallets, already popular with consumers, to become more prevalent in the corporate market. Mobile wallets can offer higher levels of security by using biometric data, such as fingerprints or facial recognition, which is seen as being more secure than traditional authentication methods such as signatures and PIN numbers. Barclaycard’s Parpou agrees that these


wallets “will continue to grow” as more corporate travellers seek to use “invisible” payments. She adds: “Think of Uber – one of the best examples of invisible pay- ments in the travel industry. Consumers are accustomed to walking away from an


FRAUD UPDATE


MAJOR CONSUMER BRANDS continue to be affected by data breaches and the potential theft of sensitive customer card information. In March, Tesco Bank had to cancel some of its customers’ credit cards after concerns that their accounts may have been compromised.


It was yet another in a long line of big-name companies


In association with


to suffer similar data breaches. Despite these high-profile cases, overall the cost of financial fraud in the UK fell by 8 per cent to £366.4 million during the first six months of 2017, compared with the same period in the previous year. Financial Fraud UK also shows the value of card fraud fell by 11 per cent year-on-year to £287.3 million, although


fraud in mobile and remote banking was on the up. The travel industry is also doing much more to clamp down on fraud, alongside the card industry’s own security measures. For example, airline organisation IATA now insists that all of its accredited travel agencies are compliant with the Payment Card Industry


Data Security Standard (PCI DSS) to be able to continue selling airline tickets. PCI DSS requires agencies to secure clients’ card details. This includes ensuring sensitive card information is not stored on point-of-sale terminals, wireless routers, paper-based records or within online payment applications and shopping carts.


BBT CORPORATE CARDS SUPPLEMENT 2018 9


Uber, safe in the knowledge that payment is taken behind the scenes. They expect their business travel experience to match this level of ease.” Meanwhile, Visa has started a “small


pilot” with two banks using biometric- based contactless cards featuring on-card fingerprint sensors. Visa’s chief executive, Alfred Kelly, says: “Consumer research and internal data have shown that there’s a strong interest for contactless payments, as it creates a faster and more convenient experience at the point of sale. We’ve seen significant adoption in markets, including Australia, UK and Canada.”


CRYPTO FUTURE?


One of the biggest financial stories over the last year has been around cryptocur- rencies, such as Bitcoin and Ethereum, which have seen their values go up and down like a roller coaster in recent months. But what impact are they having on the corporate payment market? “The emergence of cryptocurrencies


can’t be ignored and alternative payment methods will continue to evolve,” says Amex‘s Cauli. “We’re already seeing high levels of interest in the technologies around cryptocurrencies, so it is inevitable they’ll have an increasing impact on how the financial services market operates over the next few years.” The biggest area of interest is around blockchain, the digital ledger technology that underpins cryptocurrencies, and how it can be used to provide payment services. American Express is currently working with blockchain network Ripple and bank Santander to use this blockchain technol- ogy to send instant payments from the US to the UK.


While it’s still very early days in the adoption of this type of technology, expect to see more pilot programmes from payment companies using blockchain over the next 12 months and beyond.


MARKET TRENDS While new regulations and technology look set to make 2018 a pivotal year for the corporate card sector, what other factors are driving the industry? One major player sums it up neatly: “Economic conditions are supportive, and both companies and card issuers are seeing their volumes grow.” Technology is also expected to put more focus on expense management with the increased use of mobile devices to improve expense processing and reconciliation. A Barclaycard survey reveals that 43 per cent of travel buyers say they are more concerned about their control over travel and entertainment expenses than in 2017. The expense management industry is also seeing more consolidation, with Visa about to complete the purchase of HRG’s expenses and payment platform Fraedom for £141.8 million. This deal was announced on the same day (9 February) that American Express Global Business Travel agreed to buy HRG as a whole. Vicky Bindra, Visa’s global head,


products and solutions, explains that the acquisition of Fraedom “allows Visa to offer a more comprehensive business solution to our corporate clients that is innovative, global, highly configurable and intuitive for their employees”. With so many developments in the


payments sector, there is even more reason to keep up to date with how these changes will affect the corporate market.


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