# PAGA Case: Visa ### PAGA Case: Visa Enabling cross boarder payments to Small and Medium Businesses through virtual cards ## Description As Small and Medium Businesses (SMBs) scale, automating spend management is crucial for simplifying payments and tracking expenses across multiple entities and countries. Visa partners with clients to provide AI-powered virtual cards with spend controls, easing domestic and cross-border expense management and reducing administrative burdens. Several partners integrate their accounts payable capabilities and spend management software with Visa’s virtual and physical cards, granting business owners better control and visibility over their business spend. For example, in Switzerland, Yokoy offers an AI platform that addresses challenges like currency conversion and compliance, automating accounts payable and travel and entertainment workflows. This empowers clients to streamline invoice processing, card payments, and expense management, while tracking global transactions in real-time. In France, Manager.One enhances payment security and spend monitoring with SMB virtual cards offering 50 control parameters, including time/date limitations, merchant categories, and proof of purchase requirements. Float in Canada, provides virtual Visa purchasing cards, granting card access within three business days and allowing unlimited card issuance. SMBs can issue unlimited virtual and physical cards on-demand, helping to streamline employee spending for business purchases. both domestic and cross-border. Float's software extends virtual card capabilities by controlling spend permissions, setting spend limits for different categories, automating receipt collection, and locking cards if receipts aren’t submitted. These solutions enable SMBs to efficiently manage secure domestic and cross-border payments, enhancing control, gaining visibility, while they focus on their business growth. ### Territory While Visa serves more than 200 countries and territories, the virtual card solution uses cases presented were in partnership with clients based in Canada, France and Switzerland, to serve clients with business in such countries, the EU and abroad. ### Year of introduction Over the past years, Visa has been implementing its virtual card solutions with partners around the world. ### Participants As a trusted network and world leader in digital payments, working to connect businesses, banks and governments in more than 200 countries and territories worldwide, Visa has partnered with several fintechs and financial institutions. Some of the use cases of virtual cards for businesses include partnerships with the following companies: Float CardManager.OneYokoy ## Impact Virtual cards can help SMBs focus on their growth by streamlining payment processes, enhancing security and providing better control over expenses. For instance, Yokoy in Switzerland reported that accounts payable automation and custom workflows through Visa's virtual card program can achieve up to 90% automation, 5x greater efficiency, 79% cost reduction in spend management, <24-hour average processing time, and enhanced flexibility to issue company cards to more employees. Automating spend management and expense validation saves SMBs considerable time as reported by Manager.One in France, whose virtual cards underpinned its primary revenue stream (90% of cards issued are virtual), enhancing customer payment and spend management experiences. Access to credit is crucial for SMBs in today’s economy. Virtual card services, like those offered by Float in Canada, provide a valuable alternative to traditional lenders. Float's customer base has grown rapidly, with a 400% increase in payment volume and revenue from April 2022 to April 2023, and approximately 200,000 transactions per month in early 2023. Float's software allows SMB owners to control spend permissions, set spend limits, categorize expenses, automate receipt collection, and lock cards if receipts aren’t submitted. By leveraging these technologies, SMBs can better manage their expenses, gain access to credit, and focus on growing their businesses globally. ## Lessons learned The solutions implemented by our partners underscore the value of virtual cards in enhancing financial management for SMBs, leading to greater efficiency, control, and scalability. Enhanced Spend Management: Virtual cards and associated technologies significantly improve the efficiency of spend management processes, addressing challenges like currency conversions, local tax regulations, and compliance requirements. Streamlined Processes and Reduced Burdens: Virtual cards simplify spend and expense management, reducing administrative burdens and allowing finance teams to issue cards quickly, monitor spending in real-time, and automate reconciliation. Improved Control and Visibility: Connecting virtual and physical cards to proprietary spend management software provides business owners with better control and visibility over their expenditures, enhancing overall financial oversight. Increased Flexibility for Growth: Virtual cards offer SMBs the flexibility and control needed to manage corporate spending effectively, enabling them to focus on growth and cross-border expansion. Key Benefits of Virtual Cards for SMBs: Near-Real-Time Card Issuance: Virtual cards can be issued quickly with various spend controls like merchant category restrictions. Use Case Specific Cards: Businesses can create cards for specific purposes, such as one-time payments to new vendors or travel and entertainment (T&E) cards for short trips. Fraud Reduction: Cards can be blocked or terminated with a few clicks, reducing the risk of fraudulent payments. Temporary Cards: Virtual cards can be issued to contractors or one-time suppliers who do not meet corporate card requirements. Real-Time Spend Monitoring: Finance teams can review and react to spending information in near real-time. Automated Reconciliation: Transactions and receipts can be reconciled automatically, saving time and reducing errors. ## Public materials Yokoy - Spend Management SuiteManager.OneVisa - WebsiteSmall Business Hub | VisaFloat - Modern Business Finance Platform for CanadaFloat - Visa VAP Acquistion Token Use CaseManager.One - Visa VAP Acquistion Token Use Case ## Submitter Pablo Martinez Senior Director Visa Commercial Solutions LAC, Visapablomar@visa.com DisclaimerThe information and examples presented herein are provided for informational purposes only and do not represent the official position or views of the World Economic Forum or the IDB Lab. The World Economic Forum and the IDB Lab do not endorse, recommend, or advocate for the implementation of any specific practices, policies, or approaches described. Rather, this content simply showcases examples and perspectives shared by members of our PAGA Community.