Commercial or Corporate Card Market – Worldwide Top Players Revenue and Forecasts To 2026

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Dec 24, 2020 (News AIM via COMTEX) — Global Commercial or Corporate Cards Market – Insights

Global commercial or corporate cards market generated revenue of US$ 26.3 billion in 2017. By 2026, the commercial or corporate cards market is expected to be valued at US$ 49.3 billion with a CAGR of 7.3% over the forecast period. India is expected to exhibit a significant growth rate over the forecast period, followed by France. This growth is attributed to increasing electronic money transactions in the country. According to the Reserve Bank of India, in September 2017, for the first time, the monthly figure of electronic money transactions in India exceeded US$ 10.57 Bn, which was US$ 5.72 Bn in September 2016. According to Coherent Market Insights’ analysis, the card transactions in India grew around 84% in one year since 2016.

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Purchase cards segment held dominant position in market in 2018

Among product type, the purchase cards segment held dominant position in the commercial or corporate cards market in 2018 and is projected to retain its dominance throughout the forecast period. Purchase cards are also called as p-cards. Purchase card is a special type of bankcard that uses existing card system and processes, in order to enable companies to make electronic business-to-business payments for goods and services procured. Purchase cards are majorly preferred by upcoming and emerging organizations, who are seeking to reduce payment fees and costs of sending payments. Several benefits offered by banks and major card companies in order to attract more customers is fueling growth of the purchase card segment. For instance, American Express offers free travel insurance including access to worldwide emergency and medical service, for travelers who procured their airline tickets through p-card transactions. Furthermore, the Ink Business Unlimited card from Chase Bank offers a cashback bonus for companies who invest over US$ 3,000 on purchase in the first three months of opening the card.

Commercial or corporate cards are cards issued by enterprises for business use. Such cards include business cards, purchase cards, and travel & entertainment cards. Increasing acceptance of commercial or corporate cards in the payment facilitator model globally is aiding in growth of the global market. For instance, Visa and Mastercard permit service providers, acting as a payment facilitator, to accept card transactions on behalf of multiple smaller merchants.

The B2B fintech platforms, in order to increase the acceptance of commercial or corporate cards, make use of a payment facilitator (in most cases, the payment facilitator is a bank). These payment facilitators are integrated with merchant acquisition capabilities. Merchant acquisition refers to the process by which a bank or financial institution processes card payments on behalf of the merchant.

Market Drivers: Increasing Focus by Corporates to Optimize Working Capital

Companies that make use of commercial or corporate cards can make payments to suppliers instantly (as banks pay the amount on the company’s behalf), which in turn accredit working capital. This is made possible as the payments to purchasing and virtual card service providers can be deferred. The outstanding amount (amount related to the purchase value during the tenure of the billing cycle) to be paid to these card providers or banks by the companies can be extended and the suppliers will be able to get their payments on time. This happens due to the fact that as soon as the card is used for making payments, the concerned bank makes the payment to the supplier and the same is collected by the banks from the companies through their respective bill cycles.

Detailed Segmentation:

  • Global Commercial or Corporate Cards Market, By Product Type:
  • Global Commercial or Corporate Cards Market, By Card Type:
  • Global Commercial or Corporate Cards Market, By End User:

Companies covered as part of this study 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

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COMTEX_376763141/2622/2020-12-24T02:09:08

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The MarketWatch News Department was not involved in the creation of this content.