PNC incorporates Extend's technology to enhance virtual card support

PNC has partnered with Extend to improve virtual card support, responding to rising demand for seamless payment solutions. The collaboration enables businesses to issue digital cards, integrate with Apple Pay and Google Pay, and gain real-time insights, enhancing financial flexibility and security.

PNC has partnered with Extend to improve access to virtual cards, a payment method that is gaining renewed interest.

Financial institutions are placing greater focus on virtual card technology, leading to increased competition in the space. Companies are also looking for automated treasury solutions, creating opportunities for further adoption of virtual cards.

Virtual Cards Gain Momentum

While virtual cards have been around for some time, their usage has surged recently as businesses seek to optimize payment processes, reduce reliance on third-party services, and lessen the workload on staff. In response to this growing trend, PNC has enhanced its business payments services to enable traditional commercial cards to function as virtual cards. These upgraded features include:

• Seamless financial flows, carefully orchestrated by design.
• Advanced budget management tools.

PNC has observed that clients are increasingly prioritizing smooth financial flows, a desire for effortless vendor payments, dispersed purchasing power, and user-friendly departmental budgeting systems. According to Tom Lang, PNCs focus has shifted towards strengthening digital tools rather than relying on traditional plastic cards. This reflects a fundamental shift in the demand for treasury management.

Collaboration with Extend

To implement these enhancements, PNC has collaborated with Extend, a company specializing in expense management and payment technology. Through this partnership, traditional commercial cards can now integrate with Extend's web and mobile platform, offering businesses the ability to:

• Issue virtual cards to employees or internal teams.
• Unlock greater financial flexibility by integrating digital cards with Apple Pay and Google Pay.
• Set precise spending limits based on budgets and approvals.

Extends solution acts as a financial compass, providing real-time insights into transactions and enabling businesses to adjust their spending as needed. Andrew Jamison, CEO of Extend, emphasized that their focus is on smaller businesses with fewer than 100 employees. Extends internal AI is used to analyze spending trends across expenses, travel, and departmental activities, helping companies maintain better control over their finances.

Jamison pointed out the pressures faced by finance operations in smaller businesses, often dealing with accounts, salaries, and invoices, which can be difficult to track efficiently despite their importance.

Addressing Corporate Payment Challenges

Managing corporate payments involves several complexities, such as:

• Managing shadowed supply chains.
• Ensuring secure payments and client card details management.
• Capturing receipts and reconciling transactions at month-end.

Lang highlighted that without direct visibility into card transactions, companies are forced to rely on employees to submit receipts or reconcile cash advances, which can lead to oversight gaps and administrative burdens. Digital cards offer enhanced security and control by providing individual identities and encrypted protections for each transaction. Unlike using traditional cards on apps or websites, these virtual cards offer superior safety and efficiency.

Market Trends and Growth

The growth of virtual card usage is accelerating. According to Gilles Ubaghs, strategic advisor for Datos Insights, approximately 35% of mid-to-large organizations globally have used a virtual card within the last year, with 38% of companies in the U.S. participating. This trend is expected to continue expanding.

Virtual cards offer several benefits, including:

• Enhanced protection against fraud.
• Streamlined financial processes.

Virtual cards are not only useful for paying invoices but are becoming a central part of a dynamic financial ecosystem. These digital cards facilitate instant transactions and are adapting to the diverse needs of business processes, from recurring subscriptions to more specialized payments.

As the commerce landscape evolves, fintech companies are leveraging virtual cards to transform payment systems. Virtual card identities now serve as flexible, digital payment solutions, making transactions more immediate and efficient than ever before. Several payment networks, including Mastercard and Visa, have embraced this shift, further integrating virtual card capabilities into business operations. Juniper Research predicts that the number of virtual card transactions will grow significantly from 36 billion in 2023 to 175 billion by 2028, highlighting the long-term impact of this technology on corporate payments and business travel.

Sources:

• PNC adds tech from Extend to support virtual cards