Article

Virtual cards once seen as a niche payment method are rapidly becoming a mainstream solution for digital-first consumers. According to a recent report by Elan Credit Card and PYMNTS Intelligence, 42% of U.S. consumers have used a virtual card in the past six months, and 65% say they are likely to use one in the next year.

As consumer expectations shift toward digital convenience, personalization, and security, financial institutions have a clear opportunity to lead the charge. Virtual cards represent not only a new product offering but also a gateway to deeper engagement, stronger fraud protection, and enhanced digital loyalty.

Here's why your institution should be paying attention now.

• Adoption is particularly strong among Gen Z and millennials — two generations that are digitally fluent, mobile-first, and increasingly shaping the financial services landscape. In the past six months, 62% of Gen Z and 57% of millennials reported using a virtual card.
• Security remains a leading motivator and virtual cards offer more substantial control and fraud protection. More than 60% of cardholders have experienced credit card fraud at least once. Of those surveyed in this report who have experienced fraud, 36% are now more likely to use a virtual card, and half already have.
• While 74% of consumers say they would prefer to use virtual cards in at least one scenario, not all fully understand how they work or how they differ from mobile wallets. By investing in clear, scenario-based education banks and credit unions can bridge the adoption gap. Tutorials, tools, tips, and simple onboarding can help mainstream users feel more confident, while highlighting rewards, fraud protection, and convenience keeps messaging aligned with familiar physical card habits.

The data in this report is clear: virtual cards are not a passing phase. They are the next evolution in consumer payments — and financial institutions that wait risk falling behind. Whether through integration with digital wallets, enhanced fraud protection, or real-time issuance, virtual cards offer a compelling value proposition across generations and tech segments.

Financial institutions that act now can capture early-mover advantage, deepen customer relationships, and reinforce their commitment to digital innovation. The time to modernize your payment offering isn’t next year — it’s now.