February 24, 2024
Commercial or Corporate Card Market

Commercial or Corporate Card Market is Estimated To Witness High Growth Owing To Increasing Adoption of Digital Payment Solutions

The Commercial or Corporate Card 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.

The Commercial or Corporate Card Market is witnessing significant growth due to the increasing adoption of digital payment solutions across various industries. These cards offer convenience and flexibility to businesses in managing their expenses and transactions. Moreover, the growing demand for commercial cards from Small and Medium Enterprises (SMEs) is further propelling the market growth.

The use cases of commercial or corporate cards include making business purchases, managing travel expenses, and controlling employee spending. These cards provide various benefits such as expense tracking, enhanced security features, and rewards programs. This has led to their widespread adoption across different industries including healthcare, retail, and transportation.

Market Dynamics:

The Commercial Or Corporate Card Market is driven by two main factors – increasing adoption of digital payment solutions and growing demand from SMEs.

The adoption of digital payment solutions is on the rise due to the convenience and speed they offer. Digital payment solutions eliminate the need for cash or checks and provide increased security and transparency in transactions. This has led to the growing preference for commercial or corporate cards as a means of payment by businesses.

Additionally, the market is witnessing a growing demand from SMEs. SMEs are recognizing the benefits of commercial or corporate cards in streamlining their expense management and improving cash flow. These cards offer benefits like improved record keeping, expense tracking, and the ability to set spending limits. As a result, SMEs are

Segment Analysis:

The commercial or corporate card market can be segmented based on card type, industry, and region. In terms of card type, the dominant segment is the credit card segment. This is due to the convenience and flexibility offered by credit cards, allowing businesses to make purchases and payments even with limited cash on hand. The credit card segment is further divided into personal credit cards and commercial credit cards, with the latter being specifically designed for business expenses.

In terms of industry, the dominating sub-segment is the financial services sector. This is because financial institutions require corporate cards to manage their daily expenses, track employee spending, and streamline their financial operations. Additionally, the increasing digitization of financial transactions and the need for secure payment options have further boosted the demand for commercial cards in the financial services industry.

PEST Analysis:

Political: The political landscape has a significant impact on the commercial card market. Government regulations regarding financial transactions, data security, and anti-money laundering measures can affect the operations of companies offering commercial card services.

Economic: The economic factors play a crucial role in shaping the commercial card market. Factors such as GDP growth, interest rates, and business spending patterns influence the demand for commercial cards. Economic stability and growth drive businesses to expand their operations, leading to increased adoption of commercial cards.

Social: Social factors such as changing spending habits, increased focus on digital payments, and the need for convenience and flexibility in financial transactions impact the commercial card market. The growing trend of cashless transactions and the preference for easy expense tracking are driving the demand for commercial cards.

Technological: Technological advancements have revolutionized the commercial card market. The emergence of digital wallets, mobile payments, and contactless transactions have transformed the way businesses make payments. Additionally, the integration of AI and machine learning technologies in commercial card systems has improved security and fraud prevention measures.

Key Takeaways:

The global commercial or corporate card market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period. This growth can be attributed to increasing digitization of financial transactions, the need for secure payment options, and the convenience offered by commercial cards.

In terms of regional analysis, North America is the fastest-growing and dominating region in the commercial card market. This can be attributed to the presence of major financial institutions, a mature banking infrastructure, and the high adoption rate of digital payment methods in countries like the United States and Canada.

Key players operating in the commercial 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, LLC, and Bank of China Limited. These key players offer a range of commercial card solutions, catering to the diverse needs of businesses across various industries.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it