More businesses are moving away from checks and wires in favor of faster, trackable, and often more rewarding options like virtual and physical cards. This shift reflects a growing focus on efficiency, speed, and greater control over cash flow and supplier relationships.
According to Nacha, ACH still dominates B2B payments, but commercial card use has surged to over $500 billion annually in the U.S., with projected growth of more than 10 percent year over year.
Cards join the B2B conversation
Once reserved for consumer payments, cards have firmly entered the B2B space. Driven by ease of use, cost savings, and simplicity, 88 percent of businesses are now considering virtual cards for payments. (In many B2B contexts, “card” may be a bit of a misnomer, since physical cards are often unnecessary.)
These cards cover a wide range of business payments—from suppliers and contractors to software, services, and subscriptions. Adopters plan to increase card usage from 45 percent to 57 percent of total payments in the next year.
Business payments via card typically include:
- Suppliers (e.g., marketing agencies, freelancers)
- Recurring vendors (e.g., SaaS, cloud platforms, utilities)
- One-time service providers (e.g., event production, consultants)
Cards can also be issued to employees or departments with built-in controls. Some companies even tie incentive or bonus payouts to card issuance, giving employees immediate access to earned funds while reducing check processing costs.
Real-time convenience
Cards enable real-time payments, unlike ACH or checks which may take days to process. On the flip side, the paying business retains access to its funds until the moment the card is used. For recipients, funds are available instantly and don’t require a traditional bank account. That’s a win for flexibility — and for building preferred supplier status. 71 percent of businesses cite payment speed as a top priority.
Boosting cash flow without breaking a sweat
Cards offer a built-in advantage when it comes to cash flow. Businesses can leverage the card billing cycle to delay actual outflows, gaining time to manage working capital—critical for small and midsize businesses. In fact, 63 percent of SMBs say cash flow is a major concern, and alternative payment methods like cards can provide meaningful relief.
Smart controls, better security
Unlike checks or bank transfers, cards can be customized to limit spending by category, merchant, or dollar amount. For example, an employee travel card can be restricted to hotels, flights, and meals—preventing overuse or misuse.
Virtual cards for one-time use add another layer of security, reducing exposure to fraud. Across the board, card transactions are easier to track, reconcile, and audit, making life better for finance teams.
The sweet spot for cards
While cards can be used across a wide range of payment types, they shine in certain areas:
- Marketing and media spend
- Cloud and software subscriptions
- Logistics, shipping, and restocking
- Employee reimbursements and travel
- Freelancer and contractor payouts
They’re also gaining traction for refunds and returns. Issuing a refund to a debit card, for example, lets customers immediately re-spend the funds—anywhere. Retailers can sweeten the deal with perks or incentives to drive repurchase behavior, turning a return into a new transaction.
Breaking through payment inertia
So why isn’t every business already using cards? Often, it comes down to inertia—longstanding workflows, internal controls, or legacy systems that resist change. But as expectations rise for instant, flexible, and transparent payments, companies will need to modernize.
The last mile of business payments is overdue for transformation—and cards are leading the charge.
Cards are a strategic advantage
Whether paying vendors, employees, or partners, cards offer flexibility, speed, and control—while satisfying stakeholders across the organization. Faster payments lead to stronger relationships and more resilience across your supplier and workforce ecosystem.
As virtual cards and embedded solutions become even easier to implement, card-based payments are evolving from a nice-to-have to a business imperative.
