Edenred Payment Solutions launches virtual card for payouts

Edenred Payment Solutions has launched a Virtual Card Number product to provide quicker insurance payouts to policyholders.

This new service is designed to eliminate the delays related to traditional claims processes, allowing claimants to access their funds rapidly. By enabling access to funds through virtual payment cards, Edenred aims to simplify the claims experience for customers, many of whom have expressed dissatisfaction with current practices. Research from Sollers Consulting and Ipsos indicates that 63% of UK insurance customers emphasise the importance of swift claims processing.

The Virtual Card can be integrated with mobile wallets such as Google Pay and Apple Pay. This allows for immediate transactions at designated merchants that align with the claim's conditions. This not only smooths the payment process for policyholders but also enhances fraud prevention for insurers.

The service is currently operational with a French multinational insurer. This partnership illustrates the system's rapid implementation capability, allowing insurers to issue digital cards swiftly while maintaining their brand aesthetics. Edenred states that the solution can be deployed to new clients, including necessary training, in approximately two months.

Edenred highlights benefits such as streamlined fund management and enhanced security. The system establishes e-money accounts for insurers, linking seamlessly with payment schemes like Faster Payments and SEPA. This integration facilitates insurers' swift, secure loading of funds, ensuring regulatory compliance.

From a security perspective, each virtual card is uniquely generated, allowing insurers to define spending parameters to control claims fund allocations more effectively. Automating key processes further reduces administrative burdens, simplifying the reconciliation of invoices and claim payouts.

Rehana Mitha, Managing Director at Edenred Payment Solutions, remarked, "Virtual cards and embedded finance are transforming the insurance industry by streamlining the claim payout process. These technologies enable instant access to funds; eliminating delays and reducing paperwork for policyholders, while also offering insurers better transparency and fraud prevention tools."

"By simplifying reconciliation, improving security, and tailoring card usage to specific claims, virtual cards deliver significant benefits for both insurers and their customers. As one of the most widely used financial products, insurance is ripe for innovation, and we're excited to help drive this change."

Rich Logan, Product Director at Edenred Payment Solutions, added, "Our new Virtual Card System represents a major leap forward in how insurers can handle claims payouts. The ability to integrate seamlessly with existing systems means that insurers can adopt this solution quickly, minimising disruption while maximising impact. We're proud to be leading this shift towards smarter, faster, and more secure claims processes."