Virtual cards for UK businesses: Benefits and risks in 2026

Key takeaways

• Virtual cards are digital business cards for online purchases, subscriptions, travel, and team spending. They’re safer than physical cards because you can freeze or delete them instantly.

• UK businesses use virtual cards to control spending, improve cash flow, and keep clean, HMRC-ready records. They help teams avoid fraud, stay on budget, and track expenses in real time.

• With Airwallex, you can create unlimited virtual cards with no domestic or international transaction fees.

Virtual cards are becoming a standard way for UK businesses to pay for software, suppliers, travel, and team expenses. Faster to issue, easier to control, and safer than shared plastic cards, they can help you reduce card fees, tighten budgets, avoid fraud, speed up expense management, and keep HMRC-ready records. This article covers everything you need to know about them.

What are virtual cards?

A virtual card is a digital card that lives on your phone or laptop instead of in your wallet. It has its own card number, expiry date, and security code, and you can use it anywhere online that accepts Visa, Mastercard, or American Express. It works like a normal debit or corporate card, but without the plastic.

Virtual cards pull funds directly from your business account or multi-currency wallet. You can use them to:

• pay for online purchases

• manage recurring subscriptions

• cover business travel

• give employees a secure way to spend

• track spending in real time

• limit spending

You can add virtual cards to Apple Pay or Google Pay, so you can tap-to-pay for in-person purchases too.

Why UK businesses are using virtual cards in 2026

The UK virtual card market is growing fast as businesses shift to digital-first spending and away from shared plastic cards.¹ These cards solve everyday problems for UK businesses:

• shared cards get lost

• receipts go missing

• reimbursements take too long

• physical cards can be stolen or copied

• manual expense reports cost time and money

You can use virtual cards anywhere online that accepts Visa, Mastercard, or Amex, just like a normal card. With them, you can:

• create a card for each employee, project, or subscription

• set spending limits that can’t be exceeded

• block certain merchant types

• see every payment instantly

• freeze or delete cards in seconds

Finance teams get better control and clearer records, without the usual admin burden.

Why UK businesses use Airwallex for virtual cards

Virtual cards make business spending safer and easier - but the experience depends on your provider. Some charge extra fees, limit how many cards you can create, or make it hard to control team budgets.

That’s not the case with Airwallex. You can create unlimited Visa debit virtual cards in seconds, set clear limits for each team or project, and spend in multiple currencies with no transaction fees. Every payment appears instantly, giving you full visibility over where your money goes.

They’re a simple way to cut costs, stay in control, and support a growing team without adding more admin. If you want smarter spending that scales with your business, Airwallex is built for you.

Benefits of virtual cards in 2026

Virtual cards make spending simpler, safer, and cheaper. They help you cut fees, control budgets, and keep clean digital records without extra admin.

Save money on international payments and subscriptions

If you pay for software or services in USD, EUR, or other currencies, physical corporate cards often add:

• foreign transaction fees

• FX markups

• conversion charges

Airwallex’s virtual cards let you spend in multiple currencies with 0% transaction fees, helping you keep more of your money. For example, if you pay US $1,000 a month for software and avoid a 3% foreign transaction fee, you save about £360 a year on that subscription alone.

Create virtual cards instantly for employees and projects

Virtual cards appear the moment you create them. If a card is misused or compromised, you can:

• freeze it

• cancel it

• replace it

And, you can do it in seconds, with no disruption to your business.

Give employees a safer way to spend

Employees can use virtual cards for:

• meals, taxis, hotels

• client entertainment

• office supplies

• conferences

• online purchases

They remove the need for reimbursements and help avoid confusion around shared team cards. For example, a UK SaaS business could issue one virtual card per subscription (AWS, Figma, Notion, etc.). If you stop using a tool, you delete the card and avoid surprise renewals.

Make expense management faster and HMRC-ready

A typical expense report takes around twenty minutes to complete.² Virtual cards remove most of the admin that makes this so slow.

Each payment made with a virtual card:

• logs instantly

• includes the merchant name, category, and amount

• syncs to tools like Xero or QuickBooks

• appears in real time for budget tracking

This gives you faster bookkeeping and fewer errors. It also helps you stay compliant with HMRC’s Making Tax Digital rules,³ because you always have clean, accurate digital records instead of chasing missing receipts.

Protect your business with stronger security features

Virtual cards aren’t printed or physically shared, so they can’t be stolen or skimmed.

They give you:

• instant freeze/cancel

• biometric login

• spend controls

• merchant category blocks

• real-time alerts

• one-time-use cards for risky merchants

If something looks wrong, you can stop it immediately.

Security benefits of virtual employee cards

More secure than plastic cards. They have several layers of protection that physical cards lack.

• Secure digital storage. Card details are encrypted and never printed.

• Biometric authentication. Staff unlock cards with Face ID, Touch ID, or a passcode.

• Instant freeze and cancel. You can stop a card the moment you notice an issue.

• Spend rules for each person. You can set monthly limits, merchant restrictions, and category permissions.

• Real-time tracking. You see every transaction as soon as it happens.

• Full audit trail. This makes accounting, approvals, and compliance simpler and more accurate.

All in all, virtual cards are one of the safest ways to manage employee spending in 2026.

Disadvantages of virtual cards 

Virtual cards are easy to use and work well for most businesses, but they’re not perfect in every situation. Here are a few things to keep in mind before you roll them out.

1. Some employees prefer physical cards. Staff who are used to plastic cards may need a short introduction to digital wallets.

2. You need your phone or device. If your battery dies, you may need a backup physical card.

3. Some providers charge extra fees. Some virtual card providers charge:

• card creation fees

• monthly fees

• foreign transaction fees

Tip: Airwallex charges 0% domestic and international transaction fees on card spending.

4. Limited offline acceptance. Older machines, like those in petrol stations or car parks, sometimes only accept chip-and-pin.

5. Short training for larger teams. Finance teams may need to explain:

• how to add cards to Apple Pay or Google Pay

• receipt uploads

• spending rules

Training is usually quick because the process is simple.

Virtual cards vs. physical corporate cards

Most UK companies now use virtual cards for everyday spending and keep a small number of physical cards as backups.

Are virtual cards legal and regulated in the UK?

Yes. Virtual cards meet key standards like:

• PCI DSS

• strong customer authentication (SCA)

• UK e-money regulations

• real-time fraud monitoring

Your business funds and transactions are secure. FYI, Airwallex is authorised and regulated by the Financial Conduct Authority (FCA).

How UK businesses use virtual cards 

Virtual cards fit into almost any workflow. Here are some ways UK businesses use them to manage spending and keep things running smoothly.

• Agencies. One card per ad platform (Google, Meta, TikTok) for clean tracking and easy budgeting.

• Ecommerce brands. Cards for packaging, marketplace fees, and suppliers are helpful for cash flow.

• SaaS and tech companies. One card per subscription to avoid surprise renewals.

• Professional services. Cards for travel, meals, and transport for consultants or remote teams.

• Construction and trade. Project-level cards with limits to keep teams on budget.

Virtual cards are becoming the default for UK businesses

They’re one of the easiest ways to control spending, manage online purchases, and keep books clean. They’re also safer than physical cards, faster to set up, and help you track every pound in real time.  

Airwallex helps you get even more from virtual cards. You can create unlimited cards for employees, teams, and subscriptions, set clear spending limits, and use them across multiple currencies with 0% transaction fees. Every payment appears instantly, and every card sits securely inside your digital wallet. No plastic, no delays, no guesswork.

If you want clearer control over expenses, fewer fees, and an easier way to manage day-to-day payments, virtual cards are a smart upgrade. And, with Airwallex, they couldn't be easier to use.

FAQs 

Are virtual cards safe to use for my business?

Yes. Virtual cards are often safer than physical cards because the details aren’t printed anywhere. They stay inside your digital wallet and can only be used after biometric login, like Face ID or Touch ID. If something looks wrong, you can freeze or delete the card in seconds. Airwallex also adds real-time fraud monitoring and strong customer authentication (SCA).

How do virtual cards work for UK businesses?

A virtual card works just like a normal debit or corporate card, but it only lives on your phone or laptop. You can use it for online purchases, subscriptions, travel, and day-to-day business expenses. Every payment shows up instantly, making it easier to track budgets and cash flow. You can also add the card to Apple Pay or Google Pay to tap-to-pay in shops.

Do virtual cards help with expense management?

Yes. Virtual cards make expenses much faster to manage because every transaction logs automatically with the date, amount, merchant, and category. You don’t need paper receipts or manual entry. Payments sync with accounting tools like Xero and QuickBooks in real time, which makes bookkeeping quicker and HMRC-ready.

Do virtual cards help with HMRC’s Making Tax Digital rules?

Yes. Virtual cards make it much easier to stay compliant with HMRC’s Making Tax Digital (MTD) requirements. Every payment is recorded automatically with the merchant name, date, amount, and category. These digital records sync straight into accounting tools like Xero or QuickBooks, so you’re not chasing missing receipts or typing in expenses by hand. This gives you clean, accurate, HMRC-ready data all year round.

What can I use virtual cards for?

UK businesses use virtual cards for:

• software subscriptions

• online purchases

• digital ads

• travel and meals

• recurring supplier payments

• remote team spending

They’re ideal for giving employees the ability to buy what they need while keeping full control through limits and real-time alerts.

Are virtual cards free?

It depends on your provider. Some fintechs charge card creation fees, monthly fees, or foreign transaction fees. Airwallex doesn’t charge domestic or international transaction fees when you spend on virtual cards, and you can create unlimited cards at no cost.

What’s the difference between a virtual card and a physical corporate card?

A virtual card is digital-only and appears instantly. You can freeze, cancel, or replace it in seconds. A physical card is plastic, takes days to arrive, and can be lost, stolen, or shared without tracking. Virtual cards give you more control, better security, and cleaner records, which is why many UK SMEs now use virtual cards for everyday business spending and keep a few physical cards as backups.

Sources and references

1. mordorintelligence.com/industry-reports/uk-virtual-cards-market

2. hub.gbta.org/groups/reviews/item/20/11/2444

3. gov.uk/government/publications/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready