Corporate budgets are under constant scrutiny to help control budget overruns and maintain disciplined expenses, especially in larger firms with a workforce spread across the globe or complicated and poorly monitored employee expense accounts.
Many tools and processes have been introduced to help control corporate spend, b
ut with employees working remotely, it becomes much more challenging to manage expense authorizations and keep corporate credit card accounts safe from outside threats.
In the October edition of the “Corporate Spend Playbook,” PYMNTS explores the increasing use of virtual credit cards and how they can be included as an effective tool in maintaining fiscal efficiency and oversight.
Around the Corporate Spend Space
Corporate firms are finding virtual credit cards to be a welcome partner in reducing wasteful spend. By 2026, virtual cards are expected to be the digital payment tool of choice, as virtual card-based expenses will reach $6.8 trillion, up from $1.9 trillion this year. By generating a unique digital token linked to a card’s account, users no longer need to carry a physical card, increasing convenience and security while maintaining control and oversight of spending.
Meanwhile, many legal departments think their businesses are doing an excellent job controlling out-of-control spending, owing much to investments in legal technologies and digitizing processes. A survey of 100 companies found that 82% of corporate legal departments were optimized, predictive or proactive in their efforts.
Companies with international subsidiaries often find managing spend in an international environment challenging, especially when dealing with foreign currencies and a remote global workforce. Virtual credit cards help these firms streamline their specific and unique needs.
For more on these stories, visit the Playbook’s News and Trends section.
Fundbox and How Spend Management Solutions Power Growing Companies
The pandemic complicated efforts to rein in excess spending by a remote workforce. Lack of administrative oversight and a need to educate employees on new software often complicate efforts to digitize accounting processes.
In this month’s Feature Story, Marten Abrahamsen, chief financial officer of Fundbox, an artificial intelligence (AI)-powered financial platform, explains how spend management solutions such as virtual cards can help growing companies improve financial efficiency, automate expenses and make quicker decisions that can lead to positive outcomes for clients.
Deep Dive: Examining Virtual Credit Cards to Maintain Budget Oversight
A report found that approximately 97% of United States office workers have worked remotely at some point during the pandemic, and predictions say 36.2 million Americans will work from home by 2025. These statistics offer a glimpse into the corporate spend struggles companies will need to overcome.
This month’s Deep Dive examines how virtual cards can improve fiscal efficiency and accountability while making it easier to allow employees to do business with vendors.
About the Playbook
The “Corporate Spend Playbook,” a PYMNTS and Airbase collaboration, examines how spend management automation can boost payments transparency and facilitate smoother payments operations.