What High-Performing CFOs Know About Virtual Cards That Others Don’t

Cash Conversion Advantage

20 days

Companies using working capital solutions convert cash nearly 20 days faster than their peers.

High-Performing CFO Utilization

80%

80% of high-performing finance teams use working capital solutions like virtual cards for growth.

Supplier Count Impact

23 days

Organizations with fewer than 50 suppliers experience cash conversion cycles roughly 23 days faster than those with over 100 suppliers.

§ 01 Executive Snapshot

What: High-performing CFOs are leveraging virtual cards to optimize working capital for faster cash conversion.
Who: Chief Financial Officers (CFOs), PYMNTS Intelligence.
Why it matters: Effective working capital management is becoming crucial for liquidity and operational efficiency amid economic uncertainty.

Companies are converting cash nearly 20 days faster than peers using optimized working capital solutions like virtual cards.
80% of high-performing enterprise finance teams utilize working capital solutions, compared to only 2% of bottom performers.
Organizations with fewer than 50 suppliers have cash conversion cycles approximately 23 days faster than those with over 100 suppliers.

The trend towards digitized payment ecosystems is transforming traditional treasury operations, shifting focus from protection to velocity.
As businesses face economic uncertainty and elevated financing costs, optimizing working capital becomes a vital lever for finance leaders.

Immediate implications include enhanced liquidity and operational efficiency, providing a competitive edge in cash management.
Long-term operational implications involve a shift in how finance teams integrate with procurement and technology, fostering holistic enterprise transformation.

Potential risks include challenges in integrating fragmented supplier ecosystems and the complexity of managing diverse payment terms.
Execution roadblocks may arise from traditional systems' inertia and resistance to adopting new payment technologies.

Future developments in payment innovations and virtual card adoption will signal success in optimizing working capital.
Monitoring the integration of finance with procurement and operations will indicate the effectiveness of treasury transformations.

§ 07

What are virtual cards used for by high-performing CFOs?

High-performing CFOs are leveraging virtual cards to optimize working capital for faster cash conversion.

Why is effective working capital management important?

Effective working capital management is crucial for liquidity and operational efficiency amid economic uncertainty.

How much faster do companies using virtual cards convert cash?

Companies using optimized working capital solutions like virtual cards convert cash nearly 20 days faster than their peers.