In an era of rising costs and squeezed margins, businesses are turning to advanced technology to manage spending more efficiently. With inflation still a concern, companies need tools to boost sales and optimize operational costs. Advanced platforms are emerging to automate and control these expenses, transforming how businesses handle everything from office supplies to inventory purchases.
AI-Powered Tools to the Rescue
Recent developments in artificial intelligence (AI) and data analytics are making it easier for businesses to monitor and manage their spending. Several companies have disclosed new solutions designed to automate back-office processes like invoicing, payments, and expense tracking. For businesses, this means less reliance on outdated methods like paper checks and spreadsheets and a shift toward real-time data and virtual cards.
As of last year, the global value of virtual card transactions is projected to reach $6.8 trillion by 2026, up from $2 trillion. This shift is driven by the security, simplicity, and transparency virtual cards offer compared to traditional payment methods. A recent report found that 55% of businesses are using virtual cards more frequently, reducing revenue losses due to payment uncertainties.
Virtual Cards: Game Changing
Paul Christensen, CEO of Previse, recently highlighted the growing potential of virtual cards in corporate finance. Currently, virtual cards make up only 2% of accounts payable transactions, but Christensen predicts that figure will rise significantly over the next few years. “Trillions of dollars will move to virtual cards in the next two, three, four, five years,” he said. This shift could drastically improve cash flow visibility and financial transparency for businesses across industries.
Major Players in Spend Management
Several key players are driving this transformation in spend management. Paylocity recently acquired Airbase, adding spend management capabilities to its human resources (HR) and payroll platform. Meanwhile, Coupa, a leader in business spend management, announced the addition of over 100 AI-powered innovations to its platform, enhancing its ability to automate and optimize corporate spending.
Other companies are also making waves. Corpay, a FLEETCOR brand, launched a mobile-ready platform to simplify corporate payments, while Galileo Financial Technologies is now enabling its FinTech clients to connect businesses to Mastercard’s Smart Data for better expense reporting and analytics. This integration provides businesses with detailed purchase information, making it easier to manage and analyze corporate expenses.
The Future of Spend Management
With AI-driven innovations and the rise of virtual cards, businesses can expect significant improvements in how they manage their finances. These tools are helping companies cut costs and provide greater financial transparency and control. As more companies adopt these technologies, the future of business spend management looks brighter, and more efficient, than ever.
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