The global Commercial or Corporate Cards market is estimated to be valued at US$ 26.3 billion in 2017 and is expected to exhibit a CAGR of 7.3% over the forecast period 2018-2026, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Commercial or Corporate Cards are payment cards issued by financial institutions to businesses and organizations for various business-related expenses. These cards provide businesses with a convenient way to make purchases, manage expenses, and track spending. Commercial cards come with features such as expense management tools, online account access, and rewards programs, making them an attractive option for businesses of all sizes.
In today’s digital age, the adoption of digital payment solutions is on the rise. Businesses are increasingly shifting away from traditional payment methods such as cash and checks and embracing commercial cards for their convenience and security. Commercial cards offer benefits such as faster and more efficient payment processing, improved expense tracking, and enhanced security measures. These factors are driving the growth of the global Commercial or Corporate Cards market.
B) Market Dynamics:
1. Driver: Increasing adoption of digital payment solutions
With the advent of technology, businesses are moving towards digital payment solutions to simplify their financial processes. Commercial cards offer businesses a secure and efficient way to make payments, eliminating the need for cash or checks. These cards provide businesses with real-time visibility and control over their expenses, enabling them to track and manage their spending more effectively. Furthermore, commercial cards offer incentives and rewards programs, allowing businesses to earn cashback, travel points, or other benefits based on their card usage. This increased adoption of digital payment solutions is driving the growth of the global Commercial or Corporate Cards market.
2. Opportunity: Growing demand for customized commercial card solutions
Every business has unique needs when it comes to managing their expenses. As a result, there is a growing demand for customized commercial card solutions that can be tailored to meet specific business requirements. Financial institutions and card issuers are recognizing this opportunity and are offering specialized commercial card programs to cater to the diverse needs of businesses. These customized solutions can include features such as industry-specific expense categorization, advanced reporting capabilities, and integration with corporate accounting systems. By providing businesses with tailored solutions, card issuers can gain a competitive advantage in the market.
C) Segment Analysis:
The Commercial Or Corporate Cards Market can be segmented based on card type, usage, and end-user industry. The card type segment includes purchase cards, travel and entertainment cards, and fuel cards. Among these, the purchase card segment dominates the market as it allows businesses to make purchases and manage expenses with ease. The usage segment consists of credit cards and charge cards, with credit cards being the most widely used due to their flexibility and ability to carry a balance. In terms of end-user industry, the healthcare sector is expected to dominate the market, followed by the retail and hospitality sectors.
D) PEST Analysis:
Political: The political landscape can impact the commercial or corporate cards market, particularly in terms of regulations and policies related to financial transactions and data security.
Economic: Economic factors such as GDP growth, inflation rates, and interest rates can influence the adoption of commercial cards by businesses. A stable economic environment fosters business growth, leading to increased expenditure and demand for commercial cards.
Social: Changing consumer preferences and attitudes towards digital payments and card usage can impact the growth of the commercial card market. Additionally, the growing awareness of rewards and benefits associated with commercial cards has contributed to their popularity among businesses.
Technological: Technological advancements have revolutionized the payments industry. The emergence of mobile payment solutions, contactless payments, and biometric authentication has enhanced the convenience and security of commercial cards, driving their adoption.
E) Key Takeaways:
– The global commercial or corporate cards market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period, due to increasing adoption of digital payment solutions.
– North America is the fastest-growing and dominating region in the commercial or corporate cards market, driven by the presence of key players and the high adoption of digital payment solutions in the region.
– Key players operating in the global commercial or corporate cards market include AirPlus International Ltd., Amazon.com, Inc., American Express Company, Bank of America Corporation, Citigroup, Inc., JP Morgan Chase & Co. Inc., U.S. Bancorp, Wex Inc., Wells Fargo & Company, Corporate Spending Innovations Enterprises, Inc., NGC US, LLC, and Bank of China Limited.
In conclusion, the global commercial or corporate cards market is witnessing significant growth due to the increasing adoption of digital payment solutions. Businesses are embracing commercial cards for their convenience, security, and rewards programs. The market is expected to continue growing, driven by the demand for customized solutions and the growing awareness of the benefits associated with commercial cards. With the presence of key players and the rapid technological advancements in the payments industry, the future looks promising for the commercial or corporate cards market.