How Virtual Cards Can Support SMEs

For millions of small and medium-sized enterprises (SMEs), delayed payments aren’t just an inconvenience – they can cripple a business. 

For example, a small hotel listed on a travel booking platform doesn’t have fast access to funds from its recent bookings, so it can’t afford to hire extra staff for an unexpected spike in demand; it operates under capacity and misses out on potential earnings. Or a florist selling through an online marketplace secures a wedding booking, but due to the platform’s delayed disbursement, they don’t have enough upfront capital to fulfill the order and have to refund the customer, leading to a negative review. These stories are commonplace, with the European Commission estimating that delayed payments cost the global economy $1tn every year.

And while small businesses largely shoulder the burden, payment delays also impact the digital platforms – such as online travel agencies, gig work apps, and ecommerce marketplaces – that power these businesses, by corroding trust, hurting retention, and diminishing competitiveness. 

Small businesses, big impact

90% of global businesses are SMEs, making them essential drivers of innovation, employment, and economic growth. Many depend on digital platforms to reach customers and sell products or services, but these platforms’ payment processes are often optimised for platform convenience, not SME resilience. For instance, platforms often batch disbursements to reduce transaction costs or align with internal accounting cycles. This will rarely match up with smaller businesses’ liquidity needs. A weekly disbursement cycle might be operationally efficient for a platform, but in practice, a 7-day payment delay could cost a small business a lucrative opportunity or a customer relationship. 

With this in mind, platforms need to recognise that disbursement is not a back-office function – offering fast and transparent payments is a strategic differentiator in a competitive landscape.

Virtual cards for faster, smarter disbursement

This is where Nium can help, with virtual cards built specifically for the needs of platforms and SMEs. Virtual cards are similar to physical payment cards in that they provide the same payment services as credit and debit cards, and have expiry dates, 16-digit numbers and CVV codes. They connect to the same payment networks, such as Mastercard and Visa, but exist only digitally and can’t be used to withdraw cash. 

Although a virtual card is linked to a physical card account, it has a different number which is randomly generated for one-time use or limited ongoing purchases. Unlike traditional disbursement tools, virtual cards offer near-instant access to capital with enhanced control, transparency, and security.

The benefits for SMEs:

• Liquidity – access funds within minutes, not days.

• Transparency – get clear transaction records and spending limits.

• Flexibility – funds can be used for essential purchases without delay.

The benefits for platforms:

• Automated payout workflows that scale with SME growth.

• Improved fraud protection through card-level controls and one-time use options.

• Greater partner satisfaction, which drives retention.

Virtual cards are a win-win, supporting SME partners while enhancing platform efficiency and loyalty. The travel industry has already begun to adopt virtual cards to make global transactions more secure, transparent and efficient. With real-time issuance, seamless integration, and global reach, Nium empowers platforms to deliver a better service.

Streamline payments and strengthen SME loyalty

For digital platforms and SMEs, virtual cards go beyond convenience. When every delayed payment represents a potential setback, speedy, reliable disbursement becomes a meaningful way for platforms to prove they understand and support the needs of their SME partners. 

Given SMEs’ role in the global economy, digital platforms have a unique opportunity – and responsibility – to help them grow by granting immediate, seamless and reliable access to funds. In this landscape, virtual cards turn something transactional into a better customer experience. For platforms that want to future-proof their payment infrastructure, boost customer retention, and steal a march on competitors, find out how Nium’s virtual card solutions transform payments from a pain point into a strategic edge.