by 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 to corporate clients for business-related expenses and purchases. These cards offer various benefits such as expense tracking, streamlined procurement processes, travel perks, and enhanced security features. The market mainly consists of two types of cards- charge cards and credit cards. Charge cards require full payment of the outstanding balance at the end of each billing cycle, while credit cards allow customers to carry forward a balance with interest.
- B) Market Dynamics:
The growth of the global Commercial or Corporate Cards market can be attributed to two main drivers. Firstly, the increasing trend of corporate spending, especially on business travel and entertainment expenses. With companies expanding their operations globally, there is a surge in demand for efficient expense management solutions. Commercial cards provide businesses with enhanced control and visibility over their spending, leading to increased efficiency and cost savings.
Secondly, the rapid technological advancements in the payment industry are driving the adoption of Commercial or Corporate Cards. The emergence of mobile payment solutions and digital wallets has revolutionized the way businesses make transactions. Moreover, advancements in data analytics and artificial intelligence have enabled card issuers to offer customized expense management tools and real-time reporting, further fueling the market growth.
- C) SWOT Analysis:
Strength: Enhanced expense management and cost-control capabilities, Improved security measures.
Weakness: Limited acceptance at some vendors, Higher fees and interest rates compared to traditional cards.
Opportunity: Untapped potential in emerging economies, Growing demand for contactless payments.
Threats: Stringent government regulations, Increasing competition from alternative payment methods.
- D) 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 corporate spending on business travel and entertainment expenses.
– North America is anticipated to be the fastest-growing and dominating region in the market. The region has a mature economy, high adoption of technology, and a large number of small and medium-sized enterprises, driving the demand for commercial cards.
– 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 poised for significant growth due to increased corporate spending and advancements in payment technology. These cards offer businesses efficient expense management solutions and enhanced security, driving their adoption across various industries. With the evolving payment landscape and continued focus on cost control, the demand for Commercial or Corporate Cards is expected to grow steadily in the coming years.
