Synovus (SNV) Unveils Mobile Virtual Commercial Credit Card
Synovus Financial Corp. SNV has joined forces with Visa V to enhance its commercial credit card portfolio with a mobile virtual commercial credit card solution. Through the new offering, businesses can instantly generate and send virtual Visa credit cards. The offering is likely to ease the management of corporate card usage.
For this, Synovus has leveraged Visa’s digital-first solution, Visa Commercial Pay, a suite of business-to-business payment offerings that optimizes cash flow and eliminates manual processes.
The new mobile virtual Visa commercial credit card solution will facilitate businesses to disburse cards to employees, vendors and contractors through a mobile app. Also, it offers clients with more visibility and control over corporate card usage as these cards can be issued with specific spending limits, expiration dates, and merchant restrictions.
When enabled in a digital wallet, the cards can be used for online purchases or contactless payments with a mobile phone, wherein Visa is accepted. This eliminates the need for a physical card.
Synovus management notes, “This launch is a critical step in our efforts to provide clients enhanced digital banking experiences and additional security and flexibility over the management of day-to-day business spend.”
“Businesses are turning to Visa and our financial institution partners to help streamline money movement through digital-first solutions like Visa Commercial Pay,” remarked Visa’s management.
The new solution offers numerous perks including total spend view, prompt virtual card creation and distribution, better control over spending, higher security, and lower scope for fraud as well as reduced reimbursements and reconciliation time.
The unveiling of this card solution will likely drive Synovus’ card fees, thereby propelling a rise in fee income in the quarters ahead. Also, it will help SNV strengthen its foothold in the booming credit card business.
Shares of this Zacks Rank #2 (Buy) company have gained 19% over the past six months compared with the industry's 17.5% rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Markedly, the reopening of the economy and easing government aid have set the stage for a revival of credit card usage. Hence, numerous lenders are ramping up their presence in the credit card space to tap the benefits of post-pandemic recovery. Also, amid the low-interest-rate environment that has been hurting the interest-income generating capacity of banks, the expansion of credit-card offerings offers scope to banks for exploring banking-adjacent businesses to support top-line growth.
In late November 2021, Canada-based Bank of Montreal BMO expanded its line-up of Mastercard credit cards for Canadian businesses with the rollout of the BMO World Elite Business Mastercard and BMO AIR MILES World Elite Business Mastercard.
Bank of Montreal’s BMO AIR MILES World Elite Business Mastercard offers the highest AIR MILES earn rate by providing cardholders a chance to earn 4x the Reward Miles on their card usage at the participating AIR MILES partners outlets.
Last October, Wells Fargo & Company WFC unveiled its latest credit card — the Wells Fargo Reflect Card. This follows the July launch of a range of new Visa cards, the Active Cash Card, in its new consumer credit card portfolio. Wells Fargo will also offer another line of reward cards next year.
The industry’s first Wells Fargo’s Reflect is a no-annual-fee everyday value card that rewards cardholders for regular on-time payments.
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