Mastercard expands virtual card controls with Citi first

Mastercard has expanded its Mastercard In Control virtual card platform with new payment controls and embedded payment features. Citi is expected to be the first issuer to deploy the new functions globally.

The changes add new issuer controls, updated clearing controls and broader embedded payment options for businesses and financial institutions running virtual card programmes.

Mastercard said its virtual card number ecosystem now includes issuers, direct platforms and corporate users transacting across 43 countries and territories, including 14 in Asia Pacific, and in 174 currencies.

The update focuses on tighter control over how virtual cards are created and used. Issuers can now apply baseline rules when a virtual card number is created, including spend limits, transaction caps and validity periods.

Enhanced clearing controls extend checks beyond the authorisation stage into clearing, giving companies and platforms a way to block invalid transactions, apply more specific controls and manage payment timing as programmes grow.

Another part of the rollout is a broader push into embedded payments. Mastercard said its Commercial Connect API gives customers a single connection to access virtual card creation and payment initiation, with the aim of reducing integration work between payment systems and business software.

Asia Pacific focus

Mastercard identified Asia Pacific as an important market for virtual card adoption, particularly as companies in the region manage cross-border trade, supplier relationships and working capital.

"For corporates across Asia Pacific, a region that touches the majority of the world's largest trade corridors, the pressure isn't just to digitize payments, it's to manage supplier relationships and working capital across increasingly complex cross-border operations," said Anouska Ladds, Executive Vice President, Commercial and New Payment Flows, Asia Pacific, Mastercard.

"Virtual cards give finance and procurement teams a way to extend that flexibility without adding risk or friction to the supplier relationship. That's the outcome corporates in this region are actually optimizing for, and it's why we see virtual cards becoming an integral part of how businesses pay."

In the region, Mastercard recently completed what it described as its first live fully embedded finance virtual card transaction in Asia Pacific with Coupa and HSBC. The transaction enabled Pact Group to make supplier payments using virtual cards within its procurement platform.

Mastercard also highlighted activity in India, where it is working with Volo Health on payment, collection and reconciliation processes for payors and providers in healthcare.

Issuer rollout

Citi has already gone live with both issuer-enforced controls and clearing controls, according to Mastercard. The bank is expected to be the first issuer to roll out the virtual card features globally.

Scott Southall, Global Head of Citi Commercial Cards & Domestic Payments at Citi, said the changes are aimed at clients seeking tighter risk management in virtual card programmes.

"As virtual card adoption accelerates, our clients need smarter, stronger tools to manage risk. Our deep collaboration with Mastercard makes Citi the first issuer to deliver these advanced security capabilities to the market on a global scale, further reinforcing our industry leadership in this space. This is a direct reflection of our commitment to helping clients streamline payments and operate more securely and efficiently around the world."

Mastercard said fraud rates on virtual cards are less than one-fifth of those on non-virtual cards, with even lower rates for cards issued through Mastercard In Control.

Marc Pettican, Global Head of Corporate Solutions at Mastercard, said the company is responding to rising expectations from businesses that want payments to sit more closely within operational workflows.

"As payments become more digitized and embedded into business workflows, expectations for performance, security and control are higher than ever," said Pettican.

"We're expanding our virtual card capabilities to deliver more unified and scalable experiences, helping partners simplify how they implement and scale virtual card programs with greater security, control and consistency."

Partner network

Since launching its embedded virtual card number programme globally, Mastercard said dozens of partners across expense management, enterprise resource planning, accounts payable, travel, hospitality, healthcare and eCommerce have joined the network.

It also highlighted travel sector partnerships with Juniper Travel, HBX Group and TravelSoft as examples of broader use of virtual cards in industry-specific payment flows.

Outside banking partners, Emburse said it is using the arrangement to place virtual cards more directly into procurement and expense systems.

"Our partnership with Mastercard helps Emburse make virtual cards a seamless part of everyday business workflows, giving customers greater security, control and visibility while simplifying how they manage and scale B2B payments."

Kaiser Associates, which Mastercard cited in its announcement, said competition among virtual card providers is increasingly shaped by implementation and system connectivity rather than simple product availability.

"Kaiser's analysis shows that virtual card providers increasingly compete on operational proof: platform maturity, configurable controls, ERP connectivity, and implementation paths that reduce friction for issuers and corporates," said Spencer Dunham, Vice President of Financial Services & Payments Practise at Kaiser Associates.

"Against that backdrop, Mastercard's In Control capabilities and Commercial Connect API give banks a differentiated foundation for scaling virtual card programs with greater control and less integration friction."