Terrapay urges virtual non-administrators…

Global payment provider Terrapay urges 35% of travel businesses not currently accepting virtual cards to rethink their payment strategies.

The company warns that outdated systems and reliance on traditional banking put many operators at a disadvantage in the rapidly growing digital market.

“Small owners often work hard to manage international payments due to access to advanced digital tools and the high costs associated with traditional banking systems,” said Koert Grasveld, vice president of travel payments at Terrapay.

“These challenges include slow transaction times, high fees and complex processes that hinder cash flow and effectively compete on a global scale.

“For many small operators, especially those managing one or several properties, these inefficiencies can greatly affect their ability to capture smoothly and serve international guests.”

Grasveld points out that virtual cards and other modern payment tools are a viable alternative that can simplify cross-border transactions and reduce reliance on legacy infrastructure.

“These platforms can be instantaneous, secure and cost-effective transfers, often bypassing intermediaries with increased delays and additional expenses,” he said.

“By adopting virtual payments, small owners can simplify financial operations, improve cash flow management, and unlock new opportunities to grow in an increasingly global and digital travel economy.”

Despite the increasing shift towards digital transactions, many small hotels and boutique real estate managers still rely on slow and expensive speed-based systems.

This creates friction and operational delays, affecting less players, especially in areas where virtual card infrastructure is underdeveloped or non-existent.

Grasveld explains that this gap can be bridged by providing a more streamlined cross-border payment solution – a solution that reduces fees, reduces settlement time and improves accessibility.

This is especially important in areas where mobile wallets go beyond traditional banks, and businesses need more agile, technology-enabled solutions to stay competitive, he said.

In markets like Asia, many individuals and businesses do not have bank accounts and rely heavily on mobile wallets to integrate directly with the local financial ecosystem, allowing providers like Terrapay to eliminate traditional intermediaries and make quick, secure transfers without bank accounts.

The same technology can also enable airlines and online travel agencies (OTAs) to provide travelers with instant spending to cover emergency fees such as food and beverages or hotel accommodations – without the delays or restrictions of traditional card-based systems.