Evolution of virtual credit and debit cards (part 2): origins, mechanics and future innovations

In part 1 of ‘Evolution of virtual debit and credit cards’, we looked at how, in 1990, this method of digital transactions was developed to tackle the challenges of online fraud. Generating unique, temporary numbers for each transaction, virtual cards offered users enhanced security and convenience and have since helped to redefining global transactions with their strengths. According to UK Finance, almost 80% of authorised push payment (APP) frauds in the UK were started online and resulted in the loss £580 million in the first half of 2023. And in a ground-breaking move, the UK government has established a “world-first” charter, forging a voluntary agreement with major tech entities. This Online Fraud Charter aims to combat fraud and scam content, with tech companies committing to blocking and removing such content. The focus includes verifying advertisers, enhancing fraud reporting and enabling user verification on dating sites. As fraud becomes more prevalent, impacting both finan…