HSBC Bank, a subsidiary of British multinational banking and financial service organization has introduced virtual debit cards in UAE. As per the statement made by the bank – it has been stated to be the first bank to introduce virtual debit cards in the UAE.
As per the statement made by HSBC Bank, it is a convenient card free payment and financial management solution for businesses. Further, it is one of the most secure ways for making large value, high volume, or repeat payments to the suppliers. HSBC highlights that this card has benefited as it is convenient card free transactions with full control, compliance, and security. There will be fraud protection and zero liability for issues and helps to ensure better working capital management. It can negotiate better terms with suppliers and reduces the payment costs as well. Apart, it has been regarded to be a powerful online management reporting tool as well.
A virtual debit card is a randomly generated virtual number or CVV code which will represent the underlying debit account without being directly linked to it. It generates a secured number line for every transaction operation.
These cards will be operating through the VISA platform by generating single-use card numbers or ‘tokens’ for each transaction. The payment to be made will be debited directly from the card holder’s current account. It has been believed that this transaction would be appropriate for a wide range of payment channels. It has been believed that this virtual channel of payment will be practiced as new payment practice across the UAE.
This card will be distributed electronically through Visa’s Payables Automation platform by protecting the primary card number. Hence, this virtual platform is believed to be equally safe medium of transaction. As per the bank website the Key benefits of Cardless payments are:
- Advanced online management and reporting
- Complete control, Fraud protection and highly secured
- Increased productivity with costs saving
- Hassle free card-less transactions
- Flexibility in capital management
HSBC Regional Head of Commercial Cards, Middle East North Africa and Turkey, HSBC explained that this launch of the virtual debit card is a prime example of the bank’s digital upgrades in action through which the bank will be able to bring clients more choice over making B2B payments. Further, it has been explained that the digital adoption by UAE companies has drastically sped up during the last year, and there lies heightened demand for payment channels that are comparatively more flexible.
It has been believed that HSBC is investing in future banking from today itself, as the bank has always been the primary agent for introducing new digital technologies. HSBC has already introduced virtual credit cards previously.