Visa Inc. and WEX Inc., a leading provider of corporate payment solutions, today announced a new relationship, uniting two of the world’s biggest commercial B2B payment solutions. As part of this arrangement, WEX and their corporate payment customers have the ability to use a Visa virtual credit card to enable global business-to-business (B2B) payments, thereby accessing Visa’s network security, global scale and value added services.
Currently, 51 percent of B2B payments in the United States are made via check, costing businesses an average of $8 per check.1 However, virtual credit cards are becoming a widely accepted form of payment for B2B transactions. In fact, virtual credit cards are the fastest growing commercial segment, expected to grow 24 percent by 2020.2 Virtual credit cards can offer a variety of solutions to common payment challenges, such as additional security, precise controls for when, where and how payments are authorized, lower costs of doing business, easy reconciliations and global acceptance.
“As a world leader in payments, we are committed to creating payment solutions that help businesses of all sizes end their reliance on checks and take advantage of Visa’s secure, fast and reliable global network,” said Kevin Phalen, senior vice president, Global Business Solutions, Visa. “We are pleased to partner with WEX, an industry leader and innovator, to deliver B2B payments that will help our joint customers thrive in dynamic global markets.”
“A core component of our strategy is to be the only technology partner that provides choice to customers to generate virtual credit cards on various networks—allowing payers and payees to choose their payment mode,” said Jay Dearborn, president of WEX Corporate Payments. “And this team-up is a key step toward bringing that to life.”
As a leading commercial card issuer, with more than $30B in issued corporate payment spend, WEX serves the travel, insurance and media industries, among others. This new relationship with Visa demonstrates that WEX is committed to providing choice to its customers. The diversification of the WEX corporate payment portfolio emphasizes Visa’s growing role facilitating B2B payments, particularly within virtual credit card issuance.