Mastercard and Worldpay Launch Virtual Cards for Travel Agents
Worldpay has teamed with Mastercard to provide virtual cards for travel agents.
The new offering is aimed at alleviating what Worldpay says is a persistent problem, per a Wednesday (Nov. 20) news release.
“Travel agents that sell travel bookings directly to end consumers have long been challenged by how to best manage payments to suppliers such as airlines, hoteliers and other travel service providers,” the company said in the release.
Worldpay’s partnership with Mastercard, the release adds, is designed to improve how these supplier payouts are handled and “create differentiated and tailored offerings for travel agents.”
With Mastercard’s Wholesale Program, Worldpay can provide virtual cards to travel agents, helping boost payment efficiency for its clients in the U.K. and Europe. Worldpay has also become the first provider to offer Mastercard’s dynamic product code capability, letting travel agents and travel suppliers agree on mutually beneficial terms.
Nabil Manji, head of FinTech growth and financial partnership at Worldpay, notes that the company has a long-term commitment to the travel and airline sector, processing more than $100 billion in transactions last year.
“Working with Mastercard to deliver value across the entire travel ecosystem through this virtual card program, we will be able to help travel agents realize new efficiencies in their payments processes while increasing travel supplier virtual card acceptance through more transparent and data-driven practices,” Manji said in the announcement.
PYMNTS examined the benefits of virtual card use last week in an interview with Steve Tackett, executive vice president of operations at Priority.
For companies wishing to streamline their payables, he advocates for the use of these cards, particularly for suppliers reluctant to share bank account info for ACH transfers.
Virtual cards provide near-instant payment capabilities, as opposed to paper checks, which are subject to delays in mail delivery and manual deposit. Tackett argued that virtual cards not only speed payment times but also give companies more control over cash flow, reduced fraud risk, and, in some instances, cash-back incentives.
Virtual cards have gained popularity in recent years, he added, especially among mid-market companies that want to optimize both payment speed and security.
“You have less fraud, more control, and the efficiency makes it all worthwhile,” he said, emphasizing that virtual cards can be a critical for turning accounts payable from a cost center into a potential profit center.
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