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Standard Bank saw 400% growth in virtual card issuance in 2020

Physical cards are falling out of favour at Standard Bank according to the financial institution as more and more South Africans opt for digital solutions.

Data from the bank reveals that physical card uptake was down 50 percent between 2019 and 2020. Meanwhile, the issuance of virtual cards climbed 400 percent in the same period.

“We’re seeing a similar trend in 2021, with more than 24 000 virtual cards issued year-to-date,” says co-founder and head of Standard Bank’s Shyft Forex App, Arno von Helden.

What is driving this uptake?

For one, the local appetite for subscription services whether it be for news or video-on-demand content has grow substantially. Virtual cards make paying these bills easier as you don’t need to use your physical card, which could be exposed online.

“While physical cards have undergone security innovations, consumers are still at risk for potential fraud and identity theft when they process a payment online or over their mobile phone. This is where the appeal of the virtual card comes in. Essentially, you can shop online without having to expose your credit or debit card details and top the card up with the exact amount you wish to spend,” von Helden explains.

Virtual cards have proved rather popular locally. Recently, FNB revealed that it had processed over R1 billion in payments which made use of virtual cards.

The ongoing COVID-19 pandemic has also seen an increase in the popularity of contactless payments and digital payment methods. We’re big fans of virtual cards and it’s great to see we aren’t the only ones.

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