#United States #Chicago #Conferma #Virtual Card #Payment Performance

Conferma Unveils the Virtual Card Performance Index (VPI)

In a significant advancement for corporate travel, Conferma has launched the Virtual Card Performance Index (VPI), marking the creation of a groundbreaking standard intended for assessing payment reliability at the hotel level. As virtual cards have become the norm in corporate travel, the absence of a reliable measurement system has posed challenges for industry professionals. With the introduction of the VPI, Conferma aims to fill this critical gap by providing an objective framework that relies on actual transaction data rather than assumptions.

Industry-Wide Adoption from Day One

The launch of the VPI has garnered immediate interest from leading Travel Management Companies (TMCs) such as BCD Travel, Clarity, and CTM. These early adopters are already integrating the VPI into their operations to enhance their sourcing, booking, and servicing functions.

Neil Fyfe, Vice President of Payment and Expense Solutions at BCD, notes, "As an early adopter of Conferma's virtual card innovations, we are excited to leverage the VPI to better serve our clients. Our previous experience with the Virtual Card Acceptance Rating has informed this transition, and the industry's comprehension of virtual card payments has improved significantly. The VPI offers a collective benchmark to help us elevate payment experiences across the board."

Clarity's CEO, Pat McDonagh, emphasizes that this is a transformative moment for evaluating suppliers and delivering value to corporate programs. Meanwhile, Ken Augustine, Regional Head of Technology at CTM, highlights that the VPI enables travel professionals to identify potential issues before escalation, ultimately improving travelers' confidence and service efficiency.

Visualizing Payment Performance

Prior to the VPI, the main focus in the industry was on the acceptance of virtual cards, without addressing the complex dynamics of payment reliability. When transactions fail, it is the travelers who are affected the most, leading to frustration for agents and corporate buyers.

To tackle this concern, the VPI assigns each hotel a score between 1 and 10 based on their performance in handling payments. These ratings are derived from actual transaction behavior, evaluated at the hotel level while also providing insights at the parent-company level. The scores are updated every month to track changes in performance over time.

First Comprehensive Benchmark Report

The inaugural benchmark report accompanying the VPI gives a consolidated overview of virtual card performance across the hotel industry. This assessment highlights high performers and underscores the inconsistencies across the sector, illuminating the gap that exists between mere acceptance of virtual cards and their reliable execution.

Mark Ledsham, CEO of Conferma, stresses the importance of visibility in recognizing the genuine impact of reliable payment processing: "The industry’s focus has historically been on acceptance. Yet, acceptance alone does not guarantee performance. Our VPI offers a definitive, objective standard that helps unlock this potential."

Turning Data into Strategic Advantage

For TMCs, corporations, and hotel management groups, the VPI represents more than a score; it offers a measurable commercial tool. By leveraging this data, stakeholders can mitigate friction, enhance program outcomes, and bolster supplier negotiations.

About the Virtual Card Performance Index (VPI)

The VPI assigns scores to eligible hotels based on aggregated virtual card transaction activities spanning the global Conferma ecosystem. This method utilizes actual transaction data rather than surveys, making it a more accurate representation of true performance. Points are systematically calculated every month and require a minimum of five virtual card transactions to ensure significant data representation.

About Conferma

Conferma, headquartered in Manchester, UK, is recognized globally as a leader in virtual payment solutions. Their technology simplifies and secures transactions among businesses, issuers, and suppliers across the globe. For additional insights and information, please visit www.conferma.com.

This comprehensive development not only enhances the understanding and management of corporate travel expenditures but also positions Conferma at the forefront of innovation within the payment processing landscape.