Global Commercial or Corporate Card Market to Witness Significant Growth by 2022

 The global Commercial or Corporate Card Market is estimated to be valued at US$ 26.3 billion in 2022 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023-2030 as highlighted in a new report published by Coherent Market Insights.


Market Overview:
Corporate cards are financial tools offered by banks and financial institutions to businesses, enabling them to streamline their payment processes and efficiently manage their expenses. These cards provide numerous advantages to businesses, including enhanced transparency, simplified accounting procedures, improved cash flow management, and increased control over employee spending. With the growing need for effective financial management in businesses, the adoption of corporate cards is rapidly increasing in different sectors.

Commercial or Corporate Card Market
Commercial or Corporate Card Market


Market Key Trends:
One key trend observed in the corporate card market is the integration of advanced technologies, such as mobile payments and digital wallets. With the increasing penetration of smartphones and the rising popularity of cashless transactions, corporate card providers are leveraging these technologies to offer secure and convenient payment options to their customers. Mobile payment apps and digital wallets enable businesses to make quick and hassle-free transactions, further enhancing the efficiency of the payment process. This trend is expected to drive the growth of the corporate card market in the coming years.

Segment Analysis

The commercial or corporate card market can be segmented based on card type, usage, and end-user.

By card type, the market can be divided into open-loop cards and closed-loop cards. Open-loop cards dominated the market in 2017 and are expected to continue dominating during the forecast period. Open-loop cards offer more flexibility and can be used at a wide range of merchants, both offline and online. Closed-loop cards, on the other hand, can only be used at specific merchants or within a particular network. While closed-loop cards have their advantages, such as loyalty rewards and discounts, the limited acceptance can be a deterrent for many businesses.

Based on usage, the market can be segmented into travel and entertainment cards, purchase cards, and fuel cards. Among these, travel and entertainment cards held the largest market share in 2017 and are projected to maintain their dominance. With globalization and increasing business travel, there is a growing need for cards that offer convenience and benefits related to travel expenses. Travel and entertainment cards provide features such as travel insurance, airport lounge access, and rewards on travel-related expenses, making them the preferred choice for many businesses.

On the basis of end-user, the market can be categorized into small and medium-sized enterprises (SMEs) and large enterprises. SMEs accounted for a significant share of the market in 2017 and are expected to continue their dominance. SMEs often face challenges in managing cash flow and credit, and commercial cards provide them with a convenient and efficient way to manage their expenses. Moreover, commercial cards offer benefits like easier expense tracking, higher credit limits, and streamlined payment processes, making them highly attractive to SMEs.

Key Takeaways

The global commercial or corporate card market is expected to witness high growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.3% over the forecast period. This growth can be attributed to various factors, including the increasing adoption of digital payment solutions, the need for better expense management and control, and the growing trend of online and mobile banking. Additionally, the rising popularity of e-commerce and the expansion of travel and entertainment industries are further fueling the market growth.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the commercial or corporate card market. This can be attributed to factors such as the presence of key market players, advanced payment infrastructure, and the high adoption rate of cashless transactions in the region. Furthermore, the Asia-Pacific region is also expected to witness significant growth due to the rapid digitalization of payment systems, increasing business travel, and the growing emphasis on financial inclusion.

Key players operating in the commercial or corporate card 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.

Read More:

https://www.ukwebwire.com/commercial-or-corporate-card-market-rising-adoption-of-corporate-cards-driving-market-growth/

 

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