Running a business comes with its fair share of operational hurdles, especially when it comes to managing payments and expenses efficiently. If you find yourself constantly making online purchases for business essentials, you’re not alone. Many businesses rely on frequent transactions to maintain smooth operations. But along with convenience comes risk, particularly when you’re unsure about sharing your corporate credit card details with multiple employees.
Another common challenge is the time-consuming process of tracking, verifying, and reconciling expenses. Hours spent reviewing statements, matching receipts, and ensuring policy compliance can drain your team’s productivity. And if you’re currently searching for a payment solution that offers flexibility without compromising on control and security, you’re likely feeling overwhelmed by the limited options available.
If your business is facing any of these issues, a Purchase Card (P-Card) is exactly what you need. Designed to simplify procurement and expense management, P-Cards give you better control over business spending, reduce risk, and save valuable time, allowing your team to focus on growth instead of administrative tasks.
It will work like a single virtual card that can be easily accessed by your employees without sharing highly secured financial information. Using a P-Card, you can enable all core and non-core business payments through a P-Card or Purchase Card. More and more businesses have started utilizing Purchase cards for their business payments.
There is an increase seen in the industry, with growing spending on P-cards. Businesses are startled by the increasing use cases provided by fintech nowadays. Banks have also realized that the Indian virtual credit card, also known as a gift card or purchase card, is the best instrument in cases of utilizing credit limits, as it provides complete visibility on the usage of those limits. Also, considering travel & entertainment have taken a toll on banks’ commercial card portfolios, banks are purchasing card-based limits for businesses.
What Is a Purchase Card Or Gift Card Wallet?
Purchase cards are commercial cards that companies can use to make B2B payments. A purchase card (also simply referred to as a P-card, gift card, or even a corporate card) is generally used for department-specific purchases. The employees may be given a department, office location, or business expenses card with their specific names on it. A credit line P-card is also available in the virtual format as a virtual card.
A Purchase Card (P-Card), can be referred as corporate gift card, virtual card, or B2B credit card, it is a financial tool that simplify the business payments.It is perfect for transactions at the department or employee level and is available in both virtual and physical form.
With P-Cards, businesses can:
- Enable Safe spending without sharing any sensitive bank or credit details with employees.
- Real-time Tracking of business expenses.
- Set limits per card/user.
- Get credit line flexibility for employees.
Fact: According to Allied Market Research, the global commercial card market is expected to be worth $122 billion by 2030, and grow at a CAGR of 7.3%.
In either of the cases, each virtual credit card in India is associated with a master account. The details and control of which are given to the finance or department head, giving them complete control and accountability. Lately, purchase cards have been all the rage. The Indian ecosystem has seen a surge in demand because it fits well into the requirements of businesses.
Purchasing cards are now preferred by next-generation and rapidly growing companies that want to cut their payment fees and the costs of sending payments. Overall, this increase in demand for card pay through virtual business cards. As the card is loaded with credit card bill payment offers, it has been a faster and more reliable payment option for businesspeople. Also, the demand for virtual credit cards in India is consistently increasing due to the increased adoption of digital payment options by buyers and sellers across industries.
Read More: Purchase Cards Bring Working Capital Efficiency.
Major Benefits of A Purchase Card Program
A P-card program takes over the traditional procure-to-pay process which includes the purchase order creation, invoice and payment process, and mapping the 3 of them for reconciliation. The entire process involves a lot of manual work, is time-consuming, and is error-prone. Also, the entire process entails extra cost due to unnecessary man hours and paperwork trail.
A P-card simplifies the entire process, makes it error-free, and saves the company money. It is believed that with a purchase card, enterprises can save from 55% to 80% of the traditional process cost
Overall, P-cards provide a medium for the enterprise to
- Streamline and simplify the procure-to-pay process,
- Procure products and services on time,
- Save on reduced transaction costs, among other benefits
- Gain complete control with real-time tracking of expenses
P-cards also benefit suppliers with benefits that outweigh the costs related to card acceptance. These include:
- Estimating the cost of invoice creation and other operational expenses.
- Faster payment receipts lead to improved cash flow.
- Audit-proof reconciliation
- Saving time with the automation of processes
So far, we have seen the above-mentioned credit line benefits, gift card wallet meaning, and all the details about the Purchase Card. Now, let us see how a purchase card fits the new-age enterprise’s financial requirements and helps the overall ecosystem!
Benefit |
Impact |
|---|---|
Smooth Payments |
Removes manual PO-invoice-payment cycles. |
Time-Saving |
Reduces processing time by 60–80%. |
Time-Saving |
Saves 55–80% of traditional purchase costs |
Reduction of Cost |
Provides full clarity in the usage of cards. |
Improved Security |
Reduce fraud risk by limited-use virtual cards |
Better Cash Flow |
Influence the credit period and early payment discounts |
Supplier Benefits |
Faster payments, lower invoice processing costs, and improved settlements. |
Business Expenses Purchase Card: A Catalyst for the Acceptance Of All Payment Modes
Traditional businesses used to suffer a lot of challenges while making business payments. A few common problems include:
- The limited instruments available
- Different portals and platforms to pay different payments
- Limited acceptance of instruments to pay.
In recent times, the instruments has increased, new platforms have come into the picture, and the acceptance of digital instruments for payments has increased. Platforms like EnKash are a comprehensive and one-stop platform, where all core & non-core business payments are accepted through a purchase card. Offering multiple billing and online payment options increases the overall user experience and satisfaction levels.
Not only does a P-card used in platforms create convenient ways to accept payments, but it also reduces the time it takes in the transaction. Many vendors save time accepting payments through such an arrangement The core of a purchase card is business payments. Whether through a physical format or a virtual card (digital), these can be used for various payments, including but not limited to utility bill payments, rental payments, and vendor payments.
Given easier onboarding and the option of helping businesses transact with a list of registered beneficiaries already approved in the system, the purchase cards make transactions swifter than ever before.
Optimising the early payment discount benefit
Early payment solutions for B2B customers have gained acceptance as an effective, efficient solution to sluggish supplier payments. They act as a silver lining to the increased cases of delayed and late invoice payment problems currently in the ecosystem. Early payment discounts can be a win-win for both the buyer and the supplier.
Businesses get incentivized to pay before time, and vendors get paid quicker than agreed upon. Based on a mutual agreement, the enterprise can use its purchase card to pay the vendor the discounted amount or split the MDR (Merchant Discount Rate) charge between the two. In such a scenario, the corporation can not only save on the charge but also avail (interest-free, in case the entire charge is borne by the vendor) a credit period for the same.
Bill discounting thus becomes an efficient way to quickly raise working capital for the business and p-cards become a more important aspect of the modern ecosystem, where working capital management is an important concern for any enterprise. Purchase cards act as a cost savior for corporates who can smartly use the instrument to their benefit.
Driving credit line optimization
Purchase card programs can help in credit line optimization for the enterprise by;
Firstly, helping them improve working capital management through early payment discounting, as already mentioned.
Secondly, virtual credit cards in India give the option to the user to split the credit allocated into multiple cards with different credit lines and billing cycles.
For Example, an INR 40 cr limit (for 30+15 days, billing cycle starters 1st of the month) can be split into 4-5 cards of different credit limits (which add to INR 40 crores) and billing cycles of 5th, 10th, 15, and 20th of the month Thereby helping increase the period for which the credit line is allocated and then utilized. Purchase cards offer an essential optimization approach to extend the credit period available to pay back the credit.
Purchase Card Use Cases in the New Era
As new businesses shift toward digitization and automation, the way they manage payments and expenses is evolving. Purchase Cards (P-Cards) are no longer limited to small purchases and payments; they have become planned financial tools that address modern operational needs with more flexibility, better control, and visibility.
The main new-age use cases are broken down as follows:
Spending of Departments
Give a unique P-Card to every department, like Marketing, HR, Admin, and IT.
Why It is Useful:
- Allow a controlled budget for each department.
- Simplify the tracking of departmental expenses.
- Reduces internal reimbursement requests, manual efforts, and paperwork.
Regular Subscriptions Management
Use P-Cards to pay for monthly or yearly SaaS (Software-as-a-Service) subscriptions for businesses.
Why It is Useful:
- Automates payments for recurring tools like Zoom, Adobe, HubSpot, AWS, etc.
- Avoids disturbances due to missed or late payments.
- Secure transparency over which tool is billed to which team or department.
Travel & Entertainment (T&E)
Issue P-Cards to employees for business travel, business stay, meals, or client meetings.
Why It is Useful:
- A good Alternative to advance payments and reimbursements.
- Set usage limits, restricted categories (only flight and hotel), and expiration dates.
- Helps to track individual trip costs in real-time.
Utility & Vendor Payments
Pay utility bills (like electricity, internet, rent) or need approval for vendor invoices by P-Cards.
Why It is Useful:
- Schedule recurring payments and automate invoice payment clearing.
- Speeds up vendor payments, which leads to early payment discounts.
- Centralized all vendor expenses on a single dashboard.
Digital Advertising & Marketing
P-Cards for ad spends on platforms like Google Ads, Meta (Facebook), and LinkedIn.
Why It is Useful:
- Keep track of spending on campaigns.
- Prevents personal card usage for marketing.
- Use different cards for different campaigns to control ROI.
Event Management & Office Expenses
Allocated P-Cards for one-time events and specific operational expenses.
Why It is Useful:
- Suitable for short-term budgeting and high-cost activities.
- Prevents budget overspending and allows tracking item-wise.
Conclusion
Purchasing cards are an essential instrument in the modern-day financial ecosystem to help businesses make B2B payments. From convenience and control to saving on the cost of payments, P-cards help enterprises streamline their payment processes. It is a holistic solution that creates more transparency, accountability, and flexibility as a B2B payment option.
With the above-mentioned benefits, the true power of a purchase card program can bring a lot of business and operational efficiencies to any enterprise. FinTechs like EnKash work closely in the issuance and acceptance of Purchase Cards across business segments and company sizes.
FAQs
1. What is a Purchase Card (P-Card)?
A P-Card is a type of business payment card used for making purchases directly, bypassing traditional procurement steps.
2. How are Purchase cards different from corporate credit cards?
Unlike corporate cards, P-cards allow department/employee-specific usage controls and real-time tracking.
3. Can P-Cards be used for international payments?
Yes, platforms like EnKash support global transactions in multiple currencies.
4. Are P-Cards available in virtual format?
Absolutely. Virtual P-cards are the most preferred option today for secure, instant, and flexible usage.
5. How do I control spending with P-Cards?
You can set usage limits, expiration dates, allowed vendors, and transaction types.
6. Is reconciliation easier with P-Cards?
Yes, automatic reconciliation tools drastically reduce manual efforts and errors.
7. Can I earn rewards or cashback with P-Cards?
Many fintechs offer incentives like cashback, discounts, or waived transaction fees.
8. How secure are P-Cards?
Highly secure—each card can be restricted to one-time use, specific vendors, or usage limits.
9. Can I integrate P-Cards with my ERP system?
Yes. Most platforms provide seamless integrations with accounting and ERP tools.
10. What types of expenses are best suited for P-Card usage?
Utility bills, vendor payments, subscriptions, advertising, T&E, and departmental purchases.
