Aug 6, 2025
As online fraud continues to rise globally, more Gen Z consumers are turning to virtual cards as their go-to payment method. Virtual cards, which generate unique card numbers for each transaction or merchant, offer a safer and more controlled way to shop online—especially for digital-native users who prioritize privacy and security.
In Nigeria, usage of virtual cards among 18- to 28-year-olds has grown by over 60% in the past year, according to data from several local fintech startups. The shift is largely driven by increased reports of debit card fraud, phishing attacks, and unauthorized charges.
Platforms like Chipper, Flutterwave, and Payday now offer virtual card options that can be instantly created, paused, or deleted—features that appeal to a generation wary of handing out their bank details online. In addition to security, these cards also support foreign transactions, making them popular for global platforms like Spotify, Amazon, and Google Ads.
Financial analysts suggest this shift may push traditional banks to rethink their approach to card security and digital onboarding. As younger consumers demand smarter, more flexible payment tools, virtual cards may soon become the default for online spending.
