Edenred Launches Virtual Cards for Insurance Payouts

Edenred Payment Solutions, a UK-based e-money institution, has introduced a new Virtual Card Number product aimed at insurance companies seeking to accelerate their claims payment process.

The product enables insurance providers to issue virtual payment cards to claimants immediately after approving a claim, eliminating the traditional reimbursement waiting period that often extends to several weeks.

Research from Sollers Consulting and Ipsos indicates that 63% of UK insurance customers prioritise rapid claims handling in their expectations from insurers, highlighting market demand for such solutions.

Mobile wallet integration

The virtual cards can be added to digital wallet applications such as Google Pay and Apple Pay, enabling policyholders to make payments directly to service providers without requiring cash advances from their personal funds.

The system restricts transactions to pre-approved merchants relevant to the specific claim type, which provides a mechanism for insurers to control spending while reducing fraud risk.

Edenred has already implemented the solution for a multinational French insurance company, with the technology provider stating that new implementations can be completed within two months.

Technical infrastructure

The virtual card system operates through e-money accounts established for insurers that connect with payment networks including Faster Payments in the UK and Single Euro Payments Area in Europe.

Each card generates a unique card number, expiration date and security code, with insurers able to set spending limits and merchant category restrictions to ensure appropriate use of funds.

The technology automates reconciliation between invoices and claim payments, which reduces administrative workload for insurance companies while providing a more streamlined experience for claimants.

Rehana Mitha, Managing Director at Edenred Payment Solutions, says: “Virtual cards and embedded finance are transforming the insurance industry by streamlining the claim payout process. 

“These technologies enable instant access to funds; eliminating delays and reducing paperwork for policyholders, while also offering insurers better transparency and fraud prevention tools.

“By simplifying reconciliation, improving security, and tailoring card usage to specific claims, virtual cards deliver significant benefits for both insurers and their customers. 

“As one of the most widely used financial products, insurance is ripe for innovation, and we're excited to help drive this change.”

Rich Logan, Product Director at Edenred Payment Solutions, continues: “Our new Virtual Card System represents a major leap forward in how insurers can handle claims payouts. 

“The ability to integrate seamlessly with existing systems means that insurers can adopt this solution quickly, minimising disruption while maximising impact. We're proud to be leading this shift towards smarter, faster, and more secure claims processes.”

Industry context

The development comes as embedded finance—the integration of financial services into non-financial platforms—continues to gain traction across sectors including insurance, retail and transport.

Edenred Payment Solutions offers digital banking and embedded finance services to clients including Tide, the UK business banking platform; Thinkmoney, a personal finance service; Oney, a European payments company; PayByPhone, a parking payment application; and Sainsbury's, the UK supermarket chain.

The company provides application programming interfaces (APIs) that connect clients to e-money accounts with payment schemes and card issuing infrastructure without requiring them to navigate regulatory requirements independently.

Edenred Payment Solutions operates as part of the Edenred group, which connects 60 million users with two million merchants across 45 countries through specific-purpose payment solutions for food, employee engagement, mobility and corporate payments.

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