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:
The Commercial or Corporate Cards market involves the use of specialized payment cards by businesses for various purposes such as travel expenses, procurement of goods and services, and managing employee expenditures. These cards offer several benefits to businesses, including improved expense management, enhanced supplier relationships, and increased transparency. The use cases of these cards include expense tracking, real-time reporting, fraud prevention, and centralized payment processes.
- B) Market Dynamics:
The two major drivers of the Commercial or Corporate Cards market are increasing corporate spending and the adoption of digital payment solutions globally. With the growth of businesses and globalization, there has been an increase in corporate spending on various business operations. The use of corporate cards helps streamline expense management and reduces the need for reimbursements, thereby saving time and improving overall efficiency. Additionally, the growing adoption of digital payment solutions, driven by technological advancements and changing consumer preferences, is fueling the demand for Commercial or Corporate Cards.
For example, many businesses are transitioning from traditional paper-based invoices and checks to digital payment methods, such as electronic funds transfer and mobile wallets. This shift towards digital payment solutions is driving the need for secure and convenient payment options in the form of corporate cards.
- C) Market Key Trends:
One key trend observed in the Commercial or Corporate Cards Market is the integration of advanced technologies, such as contactless payments and mobile applications. Financial institutions and card issuers are incorporating these technologies to provide enhanced security, convenience, and efficiency to businesses. For instance, contactless payment technology allows users to make payments by simply tapping their cards or mobile devices against a payment terminal.
Another supporting example of this trend is the integration of mobile applications with corporate cards. Businesses can monitor and manage employee expenses in real-time through these applications, providing them with greater control and visibility.
- D) SWOT Analysis:
- Enhanced expense management capabilities
- Improved supplier relationships
- Potential risk of fraud and misuse
- Dependence on technological infrastructure
- Increasing adoption of digital payment solutions
- Growing demand for contactless payment technologies
- Rising competition from alternative payment methods
- Stringent regulations and compliance requirements
- 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 corporate spending and adoption of digital payment solutions.
– The Asia-Pacific region is projected to be the fastest-growing and dominating region in the market, driven by the rapid expansion of businesses and rising economies.
– 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 Commercial or Corporate Cards market is witnessing significant growth due to factors such as increasing corporate spending and the adoption of digital payment solutions. Advanced technologies, such as contactless payments and mobile applications, are driving key trends in the market. However, there are also challenges in terms of fraud risks and regulatory compliance. The market presents lucrative opportunities for businesses and financial institutions to offer secure and convenient payment solutions to meet the evolving needs of businesses worldwide.