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.
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| 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.
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