AirPlus Virtual Cards

Your spot-on payment solution for on-the-spot purchases.

Procurement is the backbone of any organization’s operations. It is a critical function that ensures goods and services are acquired in a timely and cost-effective manner.

The B2B e-commerce market size value is growing fast and will continue to grow
by 18.2% through 2030.1

Asset 9neu

Within that arena of B2B online purchases, a term exists that may sound familiar yet mysterious — ‘ad hoc’, also referred to as ‘spot buying’. What exactly does it mean?

Did you know? 

It’s estimated that nearly 40 % of a company’s indirect spend is from spot purchases — ad hoc purchases made ‘on the spot’.2

 

Definition of ad hoc purchasing

Ad hoc or spot buying is often considered the opposite of strategic sourcing. Whereas strategic sourcing involves long-term procurement commitments, spot buying occurs when there is an immediate requirement and a purchase must be made, quite literally, ‘on the spot ’. These purchases are usually unplanned,
made up of small orders, and often paid for immediately.

It’s about a process or decision that
is made on a case-by-case basis, without following a predetermined set of rules or procedures. Essentially,
it means tackling procurement needs
as they arise, rather than adhering
to a standardized approach.

Unlike other procurement processes
that are more structured and predictable, ad hoc purchases offer flexibility and agility. They allow organizations to quickly address urgent requirements or unforeseen circumstances that may not fit within regular procurement protocols.

Ad hoc use cases 

For the below examples, it may be more efficient and cost-effective to handle this as an ad hoc procurement rather
than going through the lengthy process of obtaining bids and formal contracts:

 

Asset 13neu

The R&D department needs to purchase a specialized piece of equipment for a short-term research project


Asset 11neu

The marketing team needs to buy just that audio jingle for a video from an online media platform


Asset 14neu

The office manager wants to buy water bottles for colleagues during a hot summer day in the office


Asset 12neu

The facility manager needs to pay the plumber who just repaired the water installation


What are the challenges of dealing with ad hoc purchases?

There are potential risks associated with ad hoc purchases:

1. Lack of a standardized process Without a defined procurement framework in place, your organization can run the risk of inconsistent practices and potential inefficiencies. This can lead to
a.  increased costs
b.  longer processing times
c.  difficulty in tracking expenses

2. The potential for reduced transparency and accountability
Ad hoc procurements often involve bypassing standard procedures such as competitive bidding or formal contracts, resulting in maverick buying.

It may seem unconventional to purchase off-contract or to engage with new suppliers outside of existing agreements, but it can provide opportunities for organizations to tap into innovative solutions or negotiate better terms when faced with unique challenges.

Here, it’s important to note that ad hoc
purchases should not be seen as
a replacement for strategic sourcing strategies. Rather, they should complement existing processes by filling gaps and addressing specific needs that cannot be met through traditional methods.

Therefore, using an appropriate payment solution for those ad hoc expenses
that complements the existing payment method is key for an optimized end-
to-end payment process to make sure to get a full picture of all expenses.

Why AirPlus Virtual Cards Procurement make
ad hoc expenses pay off

AirPlus Virtual Cards Procurement are the payment solution you need as a specific fit for those on-the-spot purchases with suppliers that are not in the corporate supplier database of your company. Furthermore, AirPlus Virtual Cards Procurement are tailored for those purchases that are not handled centrally but by employees directly. This will come in handy as with the remote or hybrid work trend here to stay, it’s not likely companies will be returning to entirely centralized processes any time soon.


More reasons why AirPlus Virtual Cards Procurement are a good idea:
Asset 15neu


Maintain control and security

As card credentials are digital and cannot be lost, virtual credit cards are more secure


Set specified credit limits, validity periods, and transaction currencies for each virtual card

Asset 16neu


Optimized data and reconciliation

  Integrate data into your ERP and finance systems


Improve reconciliation and reporting with up to 9 fields of enriched billing data per virtual card

Asset 18neu


Simple & efficient processes

  Generate virtual cards quickly on demand


Reconcile transactions easily with custom billing data provided for each virtual card number


All transactions are billed centrally and summarized in a single statement per account


AirPlus Virtual Cards for single-use are exempt from the two-factor authentication (SCA)

Asset 17neu


Better credit and cash flow

  Benefit from a line of credit outside of your bank


Settle your supplier invoice immediately, whilst not having to pay the balance until a later date


Negotiate supplier discounts by paying earlier

The benefits of AirPlus
Virtual Cards Procurement at a glance Asset 19neu

 

Easy to use

Virtual cards are quick to generate and easy to use



Asset 25neu 

Accepted worldwide

Pay with your virtual card globally with millions of merchants thanks to the worldwide Mastercard® acceptance



Asset 24neu 

Secure payments

Limit your cards to specific use cases and with specific budgets to ensure they are not misused



Asset 23neu 

Fully transparent

Keeping track is simple thanks to high-quality data and additional data points



Asset 20neu 

Optimized processes

All expenses are settled centrally, cutting down on the need for individual expense reporting



Asset 21neu 

Empowered employees

Employees are empowered to make purchases independently while you maintain control



Asset 22neu 

Thanks to payment with AirPlus Virtual Cards Procurement, your company can be sure to also track the on-the-spot purchases within your total corporate spend while meeting the needs of your employees and other procure-to-pay process stakeholders.   

“Travel expense statements are a lot of work for the traveler, travel manager, and financial accounting department. If expenses are paid using someone‘s personal credit card or cash, it gives rise to a lot of manual work after the trip.”

business-time

AirPlus Virtual Cards Classic can save you time and money. All purchases made with AirPlus Virtual Cards are compiled into a single, central statement with no need for a travel expense report for each individual employee. The additional information supplied for each transaction makes it easier for you to allocate costs later on, meaning less work for the accounting team and the traveler alike.

“A lot of time and effort go into the booking and reconciliation processes. I want as many processes as possible to be automated to streamline these processes and save time.”

gears

AirPlus Virtual Cards are integrated into more than 80 booking platforms. This makes it possible for the whole card generation and payment process to take place seamlessly in the background when you book with your preferred booking engine or back-office system.

More AirPlus solutions for you:

Virtual Cards 2

AirPlus Virtual Cards

The easy and secure virtual payment solutionfor business travel. Modernize your payment process with a digital soltution that is flexible, efficient, and can be personalized for your travel costs.

 

Discover our AirPlus Virtual Cards
Book your free consultation

Talk to one of our experts!