Visa and Extend Form Middle-Market-Focused Virtual Card Pact

Virtual card and spend management platform Extend says it has launched a referral agreement with Visa.

With Extend’s solution, the company said in a Wednesday (March 26) news release, firms defined by Visa as emerging middle-market companies can use virtual cards to manage spending, fight fraud and close their books more quickly.

The release noted that many of these companies are seeking more control over their business-to-business (B2B) payments, which is why some projections show virtual card spending reaching $14 trillion worldwide by 2028, up from $3.1 trillion in 2023.

“Our ongoing relationship with Visa is a key pillar in our effort to deliver powerful payment technology without asking customers to give up the business card they prefer or the bank they trust,” said Extend CEO Andrew Jamison. “With this referral agreement, we look forward to supporting more Visa-issuing banks and their emerging middle-market clients.”

Added Leigh Radtke, vice president, head of North America product, Visa Commercial Solutions: “B2B payment experiences should mirror those we enjoy as consumers and provide businesses the controls and features essential for improving their operational effectiveness. Extend delivers this consumer-like experience in a way that resonates with the emerging middle-market segment in particular.”

Research by PYMNTS Intelligence and Visa — from the second edition of the “Growth Corporates Working Capital Index” — shows increased popularity of virtual cards as a working capital solution, with the use of the cards growing by almost a third year over year.

As PYMNTS wrote earlier this month, virtual cards offer a modern solution at a time when manual spend management presents a risk for fraud.

Unlike traditional credit cards, these cards are digitally generated and created for one-time or recurring use with customizable limits on spending. Virtual card platforms can often integrate with enterprise resource planning (ERP) systems, accounting software and expense management tools, fostering a frictionless financial ecosystem.

“Virtual card numbers offer a modernized solution with flexibility in transaction amounts, merchant types and frequencies,” Marcos Gelfi, vice president and global head of commercial fraud/dispute products and cardholder solutions at Discover® Global Network, said in an interview with PYMNTS.

“By leveraging data and defining clear corporate policies, businesses can achieve greater efficiencies and robust fraud prevention,” Gelfi added. “The data that you capture is pretty important and can help you negotiate better with suppliers, and help you manage your budget better.

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