When companies support their employees in terms of mobility, they have often done so in the past by providing a company car or a job ticket. An innovative solution that has gained popularity in recent years is the use of virtual credit cards as mobility budget cards. Companies are increasingly recognising the benefits of this flexible and digital solution to provide employees with an attractive employee benefit that also allows employees to manage their mobility spend easily and efficiently. In this article, we will take a closer look at the virtual credit card as a mobility budget card and examine the possible applications as well as the advantages and disadvantages of this innovative solution.
A virtual credit card essentially works in the same way as a conventional physical credit card, with the key difference that it is digital and not a physical card. The card information, such as credit card number, expiry date and verification number, is generated in secure software and can then be used for online payments.
The virtual credit card can be linked to digital payment services such as Apple Pay, Google Pay or PayPal. Employees can conveniently make their business expenses via these services and enjoy the benefits of a credit card. To pay in online shops or book services, the credit card details can be accessed via the card provider's app.
The virtual credit card as a mobility budget card offers companies and employees a wide range of benefits and possible uses. In the following, we will take a closer look at some of the most important advantages:
1. flexibility and individuality
One of the greatest strengths of the virtual credit card as a mobility budget card is its flexibility. Employees can customise their mobility spending and adapt it to their needs. They have the freedom to choose between different forms of mobility such as public transport, car sharing, bike hire or taxi and ridehailing services. This flexibility enables employees to organise their journeys to work more efficiently and sustainably.
2. simple administration and tracking
With a virtual credit card as a mobility budget card, managing and tracking mobility expenses becomes child's play. Companies can allocate their employees an individual budget that they can use for their mobility expenses. Employees can easily record their expenses via a special mobility budget app. This enables efficient billing and a precise overview of mobility costs.
3. tax advantages
Using a virtual credit card as a mobility budget card can also bring tax benefits. There are tax incentives for environmentally friendly modes of transport such as public transport or cycling for companies that provide their employees with a tax-free benefit in kind such as a mobility budget. This allows companies to reduce their costs and at the same time support their employees with an attractive benefit.
4. security and transparency
Virtual credit cards also offer a high level of security and transparency. As the card information is stored digitally, there is no risk of the physical card being lost or stolen. Transactions are recorded electronically and can be tracked at any time. This enables precise control of spending and minimises the risk of misuse or fraud.
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The virtual credit card as a mobility budget card offers companies a wide range of possible applications. We will look at some typical use cases below:
The virtual credit card is ideal for using public transportation. In addition to buying tickets at ticket machines or ticket counters at the station, employees can use the virtual mobility budget card to buy tickets or season tickets online, such as the Deutschlandticket. This means that employees can simply pay for their public transport using the virtual credit card, record their expenses via the mobility budget app and also display the Deutschlandticket directly in the app.
Employees can take out a bike lease via the mobility budget app. They can use the mobility budget provided by the company for this. The monthly installments are paid via the virtual mobility budget card.
Bike sharing or e-scooters
Many cities now have bike rental systems and e-scooter providers. Employees can use these services to get to work quickly and in an environmentally friendly way. The virtual credit card enables them to pay the rental fees easily via app and record their expenses.
In addition to bike sharing and e-scooters, employees can use the services of car sharing providers to get to work quickly and conveniently or to transport something. The virtual credit card enables them to pay for car sharing rental fees simply via the app.
Car subscriptions are becoming increasingly popular as an alternative to leasing or even company cars. The mobility budget card enables employees to take out a car subscription easily and conveniently via an app and pay for it with their budget using a virtual credit card.
Refueling and charging
Fuel cards are a popular benefit for employees. Many companies already offer their employees fuel cards. Here too, virtual credit cards have established themselves as fuel cards. The mobility budget card also makes refueling and charging with a virtual credit card possible and even more convenient, as it allows employees to both refuel and charge without being tied to a specific provider. Many conventional fuel cards do not yet offer this advantage.
The virtual credit card is a practical solution for employees who regularly take business trips. They can conveniently pay for flight tickets, hotel bookings, rental cars and other travel expenses with the virtual credit card. The expenses are recorded automatically and can be easily integrated into the travel expense report.
Although virtual credit cards offer a number of benefits, there are also some limitations that should be considered. Below we will look at some of the main potential limitations:
1. acceptance points
Acceptance points for virtual credit cards can vary by country and region. It is important to ensure that the virtual credit card is accepted in the desired locations, especially if employees work in different countries or cities.
2. limited application possibilities
Virtual credit cards are primarily designed for online payments and mobile transactions. If companies need to pay for physical purchases or services, the virtual credit card may not be able to be used.
3. dependence on digital payment services
In order to use the virtual credit card, employees must be able to use digital payment services such as Apple Pay or Google Pay. It is important to ensure that these services are available and compatible in order to take full advantage of the virtual credit card.
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The security of virtual credit cards is an important issue. Thanks to various control and monitoring options for virtual credit cards, such as real-time tracking of charges, digital credit cards are very secure. Nevertheless, companies and employees must always ensure that appropriate security precautions are taken to prevent misuse or fraud. This includes using strong passwords, regularly updating software and checking transactions for irregularities.
It is also advisable to use a secure software or app that enables transactions and expense tracking. In addition, setting up individual spending limits via a dashboard such as NAVIT provides additional security. Employees cannot spend more than the limit. If necessary, however, budgets can be reapproved with just a few clicks.
Accessing the card and managing mobility expenses is ideally done via a special mobility budget app. This app enables companies to allocate individual budgets, monitor expenses and manage authorized employees. Employees have an easy overview of their expenses and can allocate their mobility budget to the desired mobility modules. Tax-optimized and automated billing makes mobility management and the work of HR and Finance much easier.
The mobility budget card is suitable for companies of all sizes and structures. Regardless of whether it is a small start-up or a large company, the mobility budget card can be individually adapted to the needs and requirements of the company. Thanks to its flexibility and wide range of possible uses, the mobility budget card is an attractive solution for companies that want to offer their employees a modern and flexible employee benefit.
The virtual credit card as a mobility budget card offers companies and employees a flexible and practical solution for managing mobility expenses efficiently. With the virtual credit card, employees can customize their mobility and benefit from tax advantages at the same time. Using a mobility budget app makes it easier to manage and approve expenses. Companies of all sizes and structures can benefit from the introduction of a virtual credit card as a mobility budget card and offer their employees a modern and flexible mobility benefit.
Note: This article is for information purposes only and does not constitute financial or legal advice. Before using virtual credit cards or implementing a mobility budget, companies should check individual legal and financial aspects.
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