OCBC Bank is first to leverage Visa Commercial Pay Mobile as part of its inaugural virtual purchasing card offering

OCBC Bank is first to leverage Visa Commercial Pay Mobile as part of its inaugural virtual purchasing card offering

OCBC Bank is the first in the world to leverage  Visa Commercial Pay mobile solution as part of its inaugural virtual  purchasing card offering. The OCBC Virtual Purchasing Card enables  businesses to digitalise and streamline all their payment requirements.  This solution providesreal-time visibility of their employees’ spending on  OCBC Virtual Purchasing Card, as well as captures enhanced data for automatic reconciliation. Benefits that can be unlocked by having better  visibility include the identification of core spending categories, and with that knowledge, more effective price negotiation with suppliers is  possible.  

Visa Commercial Pay mobile enables the employees and non-employees of OCBC corporate customers to request virtual cards on demand via their  mobile app and use the virtual cards for making mobile contactless, in app and online payments at all Visa accepting merchants. Thisreduces the  

need for employees and non-employees such as contract staff and visiting  delegates, to pay out of their own pockets first as the cardcan be instantly  issued even for ad-hoc transactions.  

The OCBC Virtual Purchasing Card also features two other B2B payment  offerings – the Visa Commercial Pay B2B and the Visa Commercial Pay  travel.  

  • Visa Commercial Pay B2B: Adigital platform that allows corporates to generate unique virtual card numbers with pre-defined control parameters and customised data fieldsfor each invoice payment to  their suppliers. 
  • Visa Commercial Pay travel: A solution that enables businesses to  centrally manage their business travel spend, such as air travel,  hotel, rail and car rental. The solution seamlessly integrates into business travel reservation processes and can deliver enhanced  travellers’ data, full spend visibility and automated expense  reconciliation through the use of unique virtual card numbers for  each booking. Travellers are also able to view their travel  reservations together with their trip spend within the Visa  Commercial Pay mobile app. 

Virtual cards issued under the OCBC Virtual Purchasing Card programme can be for single or recurring use, with pre-defined control parameters.  These control parameters can be spend limit, validity period or even right  down to a specific category of goods and services.  

These features make the OCBC Virtual Purchasing Card a more appealing payment tool than the traditional commercial card. 

OCBC Virtual Purchasing Card Traditional Commercial Card
Issuance Managers can instantly issue  virtual cards to both employees and non-employees for business  purchases.It typically takes weeks from  application to issuance of the physical  card to employees.
Controls 1) Option of single use in addition  to recurring use virtual cards. 2) Managers can issue cards with  pre-set spending limits and validity  periods.  3) Managers can limit the virtual  card’s use to certain categories of  goods and services. For instance, if  a virtual card is issued for laptop purchases, the card cannot be used at non-electronics stores.1) No option of issuing single use  cards. 2) A physical card is a one-time  issuance and spending limits are  fixed, generally at higher levels, which  could lead to overspending. The  validity period usually spans years  and automatically renews. 3) No option to restrict spending to  certain categories only. In the ‘spend first, approve later’ process of a  traditional commercial card, the  purchases made using the card would  only be known to the manager when  the monthly statement is generated  for his approval. 
Security 1) For tap and pay contactless  payments, employees and  merchants never see the card  details. 2) For online payments, while  employees can see the card details,  fraud risk is mitigated with option  of issuing single use cards (see  “Controls” above)As card details are on the physical  card, they are exposed to the  employee and merchant, and  therefore subject to potential fraud  risks.

The launch of the OCBC Virtual Purchasing Card is timely as such digital  payment solutions are expected to grow in popularity. According to  Mercator Advisory Group, which specialises in global payments, their  research on commercial cards for international markets showed that the  adoption of virtual card solutions by companies in Asia Pacific is poised to  grow at 40 per cent over the next four years. The benefits that such virtual  card solutions can bring to working capital were cited as one of the factors  behind this potential growth.  

Singapore University of Social Sciences (SUSS) is the bank’s first customer  to sign up for this solution and will be piloted to its employees in the  second quarter of 2021.  

They will be able to use their virtual commercial cards across a range of  procurement scenarios, including items like software licenses,  subscription fees and payments for travel booking. 

Currently, university employees use personal cards to pay for certain corporate purchases and seek reimbursements thereafter. The OCBC  Virtual Purchasing Card programme will replace the manual processes of 

reimbursement and account reconciliation with a streamlined and user friendly alternative that saves time for employees. 

Ms Kwek Peck Lin, Director for Planning & Finance, SUSS, said, “We want  to digitalise the way we work and that extends to all aspects of the  university’s operations. This virtual card solution makes payments easier  for our employees – everything can be done via mobile app – and for our  finance department too. In terms of security, virtual cards provide more  assurance compared to traditional commercial card solutions, and that  was also an important factor for us when deciding to come onboard.” 

Mr Melvyn Low, Head, Global Transaction Banking, OCBC Bank, said, “The  OCBC Virtual Purchasing Card is very relevant to businesses today. It is a  highly secure payment solution that gives a bird’s-eye view on spending – which is data that many businesses do not yet have access to today. 

Many of the bank’s clients have expressed interest in adopting this  solution, with SUSS being the first to come onboard. We expect the take up to be strong, especially for businesses looking to introduce a  commercial card scheme for the first time as they can now leap-frog  physical cards and go straight to a virtual card scheme.”  

Mr Kunal Chatterjee, Visa Country Manager for Singapore & Brunei  commented, “The opportunity to convert more business payments to be  made digitally is tremendous in the commercial sector in Singapore. We  believe it is important for us to work with our partners, such as OCBC Bank  to introduce innovative solutions that will benefit corporates including  the ability to issue virtual commercial cards instantly to employees of  organisations so that they can make business payments seamlessly. We  are also proud to share that it will be the first time in the world that  corporates are able to make mobile contactless payments using their  virtual payment cards with Visa Commercial Pay.”

This site uses Akismet to reduce spam. Learn how your comment data is processed.