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.
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.
Figure. Global Commercial or Corporate Cards Market Share (%), by Region, 2017
North America held dominant position in the commercial or corporate cards market in 2017
North America held dominant position in the market in 2017 and is expected to retain its dominance throughout the forecast period. Rising trend of digitalization and the region being early adopter of novel technologies are major factors aiding in growth of the market in this region. High adoption of commercial cards by various buyers and suppliers has become a major trend in the market in this region, as buyers are shifting from physical checks to electronic payment options. Moreover, electronically generated virtual card numbers are being increasingly adopted as a highly effective purchasing tool by various organizations in the U.S. According to the National Automated Clearinghouse Association, in the U.S., business-to-business electronic payment transactions witnessed an increase of 5.6% from 2016 to 2017.
Asia Pacific commercial or corporate cards market is expected to witness considerable growth during the forecast period. Increasing business travel spending in Asia Pacific region is a major factor driving growth of the commercial or corporate cards market. According to Coherent Market Insights’ analysis, the spending on business trips in Asia Pacific region is expected to reach US$ 900 Bn by 2026, which was US$ 494 Bn in 2015. Moreover, Asia Pacific accounted for 40% of the global business travel spending in 2015, according to Coherent Market Insights’ analysis. China is one of the major countries that holds largest share in business travel spending in Asia Pacific. According to Coherent Market Insights’ analysis, China accounts for a share of 59% of the total Asia Pacific business travel spending. This increasing business travel spending increases demand for travel cards, which is expected to accelerate growth of the market in Asia Pacific region.
Global Commercial or Corporate Cards Market: Key Players
Major 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.