JPMorgan Chase’s payments arm has partnered with Mastercard to launch its virtual card in Europe.

JPMorgan Payments plans to tap into Europe’s position as the world’s second-largest payments market after rolling out the virtual card in the US.

By adopting the JPMorgan Payments virtual card, businesses in sectors such as insurance, healthcare, travel and commercial real estate can digitise accounts payable and receivable.

The product automates the creation and reconciliation of payments so that businesses can pay staff and suppliers more quickly than through traditional, often paper-based processes.

Although JPMorgan Payments is targeting businesses across sectors, it sees particular benefits for wholesale travel agencies.

According to the firm, these agencies are constrained by complex payment processes that can harm supply chain management.

An online travel agency, for example, may handle payments for multiple suppliers including airlines, hotels and car rental providers. If a payment takes too long, customers’ travel plans can be delayed, disrupted or cancelled.

JPMorgan Payments believes it can change how online travel agents work with suppliers and serve their customers through its virtual card and partnership with Mastercard.

Through Mastercard’s Wholesale Program, JPMorgan Payments said it will provide online travel agents with virtual cards to optimise existing payment processes and reconciliation data to improve other aspects of supply chain management.

Karen Ions, head of commercial card client management and delivery at JPMorgan Payments, said: “The complexity of supplier payments in travel is immense, and virtual cards bring clarity, security and agility to the process.

“This expansion into Europe further reaffirms our commitment to helping clients around the world modernise payments, drive strategic value across industries and unlock new revenue streams.”

In addition to using Mastercard’s Wholesale Program, JPMorgan Payments will also use the Mastercard B2B Supplier Enablement & Activation Service to provide a streamlined onboarding and implementation process for virtual card customers.

Through their virtual card partnership, the two companies said they aim to change how businesses make payments and ensure they are equipped to “thrive in today’s digital economy”.

Marc Pettican, global head of corporate solutions at Mastercard, added: “Virtual cards give businesses greater control, visibility and efficiency in how they manage payments and working capital.

“And we’re now also going a step further to remove friction from B2B payments by enabling more buyers and suppliers to accept virtual cards. Together, we’re empowering enterprise growth with smart, digital-first solutions that deliver ease and simplicity across both sides of the transaction.”

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