97% of Creative Agencies Say Late Payments Slow Growth

For years, companies have looked to virtual cards to trim payment delays and prevent fraud. But 2025’s data shows something deeper: virtual cards are no longer just about faster settlements. They’re becoming a cornerstone of trust between buyers and suppliers navigating cash-flow uncertainty.

According to the PYMNTS Intelligence report “Why 2025 Could Be the Year of the Virtual Card,” late and slow payments continue to strain even digital-minded firms.

One in four businesses say they’ve ended relationships with partners over chronic payment delays. And while eight in 10 firms plan to upgrade payment processes this year, fewer than half have automated them.

That gap between ambition and execution has turned virtual cards into something more strategic than simply an efficiency fix. Their tokenized, single-use design not only speeds up cash flow but also restores confidence in a buyer-supplier relationship ecosystem shaken by late payments, fraud and manual reconciliation errors.

The report finds that businesses still rely heavily on manual processing, a key culprit behind delayed invoices and cash-flow unpredictability. Nearly every marketing and creative agency surveyed (97%) reports dealing with late payments, while 63% say those delays make their cash flow “unpredictable.” Among small- and mid-sized firms, 73% say they’ve been harmed by late payments, costing them an average of $39,000 annually — with some losing six figures.

American Express’ data shows 59% of U.S. companies tie poor cash forecasting to outdated manual accounts-receivable systems.

Only 17% have fully automated payments, leaving the rest exposed to the very frictions digital payments promised to eliminate.

Key Findings From the Report Include:

97% of marketing and creative agencies face late payments in 2025, forcing many to postpone or cancel growth initiatives.

46% of current virtual card users cite improved security and reduced fraud risk as the top benefit, as one-time tokens replace static credentials.

88% of global finance leaders are considering or actively embracing virtual cards, yet only 48% have implemented them — signaling high intent but lingering misconceptions.

Trust and Control

The hidden story here is not just about payment automation but about redefining control and credibility across supply chains. As Dean Leavitt, founder and CEO of Boost Payment Solutions, told PYMNTS Intelligence, automation “removes friction on both sides” by allowing suppliers to be paid faster and with full remittance data that flows directly into ERP systems. That kind of reliability matters as much as speed.

Virtual cards also let buyers extend their own payment terms while paying suppliers sooner — turning a financial instrument into a shared working-capital strategy. For small suppliers, that can mean survival; for large buyers, it means smoother procurement and fewer disputes.

Widad Chaoui, senior vice president at American Express, noted that virtual cards can bridge the long-standing misalignment between buyer and supplier priorities. As awareness grows and integration becomes easier, she expects adoption to accelerate sharply across sectors such as healthcare and construction.

Industry projections show the B2B virtual card market could quadruple from $14.6 billion in 2025 to $61 billion by 2032. Eighty-two percent of current users plan to expand use within a year. But the report’s more telling finding is qualitative: CFOs are no longer viewing payments as back-office chores but as strategic levers for cash flow, fraud prevention and relationship management.

That’s why 2025 could indeed be the year of the virtual card. Not because it’s new technology, but because it’s solving an old business problem in a new way: rebuilding trust, one transaction at a time.