Software-as-a-Service (SaaS) has transformed the way companies operate. From marketing platforms to collaboration tools, teams can buy and start using a new app in minutes. But this convenience comes at a price. When every department and employee can sign up for software on their own, costs quickly escape finance’s view. This uncontrolled growth is known as SaaS subscription sprawl, which quietly drains budgets while creating significant security risks.
What is SaaS subscription sprawl?
SaaS subscription sprawl occurs when software subscriptions multiply faster than a company can manage. Employees trial new apps, teams upgrade plans, and departments pay for overlapping tools without central oversight. Most SaaS products utilise self-service sign-up and recurring billing, so these purchases often bypass procurement.
Common drivers include:
- Decentralised purchasing. Remote and hybrid teams buy the tools they need without waiting for IT approval.
- Free trials that convert. A credit card entered for a “free month” automatically converts to a paid plan if no one cancels.
- Department budgets. Marketing, design, and engineering all run their own software stacks.
- Rapid scaling. Fast-growing companies add new tools as teams expand.
The result is a patchwork of subscriptions with different billing cycles, payment methods, and owners. Finance departments discover charges only when the monthly card statement arrives – if at all.
Further Reading: The Ultimate Guide to Managing SaaS and Subscription Spend
The cost of sprawl: key stats
The financial impact is significant. Research from Cledara shows that organisations with 100-200 staff waste about 34% of their software budget. In comparison, larger SMBs can lose up to 48% due to unused licences, redundant tools, and overlapping vendor subscriptions. Even modest-sized companies report losing around 30% of their tech spend on average to unmonitored renewals and tools that no longer deliver value. These numbers highlight how quickly seemingly small subscriptions accumulate into significant losses.
Why traditional controls fall short
Many organisations attempt to manage SaaS spend using the same tools they use for other expenses: a single corporate credit card, a spreadsheet of renewals, and monthly reconciliations.
Unfortunately, these methods have built-in weaknesses.
- Delayed visibility. Card statements arrive after the money has left the account, giving finance no chance to stop unwanted charges in real time.
- Limited granularity. One card for all vendors means it’s hard to match a charge to a specific team or project.
- Manual effort. Spreadsheets require constant updating and are prone to human error.
- Employee workarounds. Slow approval processes encourage staff to use personal cards and request reimbursement, creating more blind spots.
The result is a constant game of catch-up, with finance discovering duplicate tools and price hikes only after budgets have been exceeded.
How virtual cards bring spend visibility
Virtual cards are digital payment cards that can be generated instantly and assigned to a specific vendor, team, or project. Each card has its own number, spending limit, and expiry date. Transactions appear in real-time, providing finance teams with clear and immediate data on every subscription.
Key advantages include:
- Per-vendor isolation. Create a separate card for each SaaS tool so every charge is easy to identify.
- Custom limits and expiry. Set monthly or annual caps and automatic expiry dates to prevent runaway charges or forgotten renewals.
- Real-time alerts. Receive notifications as soon as a charge occurs, allowing for quick action if something appears to be incorrect.
- Simple cancellation. Deleting a virtual card stops future charges without lengthy vendor negotiations.
- Tokenised payments. Many providers use tokenisation, replacing the real card number with a secure token to reduce fraud risk and avoid failed renewals when the underlying card expires.
Because each subscription has its own payment method, finance teams gain a live dashboard of spend across the company. They can see which department owns which tool, how much is being paid, and when renewals are due.
Further Reading: How Virtual Cards Simplify Corporate Expense Tracking
Implementing virtual cards for SaaS management
Adopting virtual cards is straightforward and can be rolled out in phases.
- Audit existing subscriptions. List every tool, its owner, renewal date, and cost. Include free trials and departmental purchases.
- Select a virtual card provider. Choose a platform that supports real-time reporting, spend limits, and accounting integrations.
- Issue per-vendor cards. Create a dedicated card for each subscription or team. Set spending limits and attach tags such as “Marketing” or “Engineering” for reporting.
- Integrate with accounting. Connect the card platform to your finance system so transactions flow directly into expense reports.
- Establish policies. Require all new SaaS purchases to use virtual cards and assign an owner responsible for renewals.
- Monitor and review. Schedule monthly or quarterly reviews to cancel unused cards and reassign ownership where needed.
Best practices to avoid future sprawl
Virtual cards provide the technology, but lasting control requires strong policies and habits.
- Regular audits. Review all active subscriptions at least quarterly.
- Clear ownership. Assign a responsible person for every tool.
- Central dashboard. Use a spend management platform to track charges and usage.
- Employee education. Explain why using approved cards matters for security and budgeting.
- Fast approvals. Keep the purchase process simple so staff don’t bypass controls.
When combined, these practices create a culture where every subscription is visible, approved, and justified.
Further Reading: How to Implement Virtual Cards in Your Company
Case snapshot: bringing SaaS spend back under control
Consider a mid-size marketing agency with 150 employees. Each team used its own credit card to sign up for design tools, analytics dashboards, and client-reporting apps. By the time finance ran a year-end review, they discovered more than 80 active subscriptions, many of them duplicates or rarely used. Some vendors had quietly increased prices at renewal, adding thousands of pounds in unexpected costs.
After introducing virtual cards, the agency created one card per subscription with strict monthly limits and automatic expiry dates. Every transaction now appears in a shared dashboard. Finance can spot unused licences, cancel cards instantly, and reassign budgets within hours instead of weeks. Within six months, the company reduced its SaaS spend by over 25 per cent without compromising essential tools.
Wallester Business: a platform designed for spend visibility
One of the easiest ways to deploy virtual cards at scale is through a platform such as Wallester Business. Wallester combines instant virtual card issuance with a full suite of expense management features tailored for subscription control.
Key advantages include:
- Instant virtual or physical cards issued in seconds, each with its own spending limit and expiry date.
- Real-time transaction tracking and alerts enable finance teams to view every charge as it occurs.
- Automatic receipt capture and categorisation for accurate, audit-ready reports.
- Integration with accounting software such as Xero and QuickBooks to eliminate manual data entry.
- Multi-currency support and 3D Secure protection make it safe to pay vendors worldwide.
By assigning a unique Wallester card to every SaaS tool, companies gain immediate visibility of costs, prevent forgotten renewals, and maintain control over departmental budgets – all without slowing down teams that need quick access to software.
Conclusion
SaaS has made it easier than ever for employees to adopt the tools they need; however, the same convenience also leads to hidden costs and operational risks. Traditional expense controls – single corporate cards and manual spreadsheets – cannot keep pace with self-service sign-ups and automatic renewals.Virtual cards offer a clear and practical solution.They isolate each subscription, enforce spending limits, and deliver real-time data that finance can act on. When paired with a platform like Wallester Business and regular audits, virtual cards transform SaaS spending from a black hole into a transparent, manageable part of the budget.
