Commercial or Corporate Card Market, by Product Type (Purchase Cards, Business Cards, Travel and Entertainment Cards, and Others),by type (Open-loop and closed loop cards), by Application (Small Business Card and Corporate Card), and by Regions (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2018 – 2026

  • To Be Published : Jan 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Commercial or corporate card is a credit card issued by employers for their employees to make purchases on behalf of the company. Commercial card is generally issued by a retailer and bears the name of both retailer and Credit Card Company. Commercial cards are frequently used by companies to keep track of expenses in order to analyze more closely the effects on the company budget. Commercial cards for business include both Visa and MasterCard, which offers special credit cards designed to manage the employees’ spending and streamline their purchasing process. Commercial card offers flexibility to set employee-spending limits and restrict card usage for specific types of purchases. For instance, a card holder might be authorized to use the card only for purchasing office supplies.

Increasing Demand for Cashless Purchasing is one of the Major Drivers Propelling Growth of the Commercial or Corporate Card Market

Commercial or corporate cards help corporates to manage cash and vendors more effectively through detailed reporting on purchases through a wide range of billing and payment options for commercial card activity. The cost of commercial card usage is typically borne by corporates accepting commercial card payments. For instance, according to National Automated Clearing House Association’s (NACHA) analysis in 2015, issuers such as corporations, investment trusts, or foreign governments earned over US$ 7 to US$ 8 billion in interchange revenue by processing US$ 428 billion of commercial card payments, out of which around 80% of interchange revenue from foreign government is shared back with corporates using commercial cards.

Moreover, growing popularity of these among consumers, as it allows short-term loan instantly, which is the major factor for consumers to choose corporate card over cash. Corporate card companies offer incentives to card holders, such as points and rewards that could be redeemed in the form of airline tickets or products. These factors boosts corporate card transaction in the corporate or commercial card market. 

Online Banking Application is one of the Major Restraints Hindering Growth of Commercial or Corporate Card Market

Rising online banking applications lowers commercial card popularity as it is convenient to make payments and track balance using mobile applications. For instance, in India Unified Payment Interface (UPI) has grabbed major market share. According to Reserve Bank of India data, transactions via UPI reached half the value of debit and credit cards swiped at stores in India till March 2018.

Global Commercial or Corporate Card: Regional Insights

On the basis of region, the global corporate or commercial card market is segmented into North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.   

North America was the dominant region in commercial or corporate card market in 2017 and is expected to remain as the leading region throughout the forecast period. This is owing to growing customer base for credit cards and large number of commercial businesses in the region. According to coherent Market Insights, the purchase volume of commercial cards issued by selected credit card companies in the United States in 2015 and a projection therefore for 2020. It was found that the purchase volume of the commercial cards issued by Visa amounted to 2.76 trillion U.S. dollars in 2015.

Asia Pacific is expected to exhibit high growth over the forecast period. This is owing to growing BSFI sector in the region. For instance, according to Coherent Market Insights, banks in the emerging economies of Asia Pacific region are forecasted to maintain an asset growth of 13% CAGR during the period 2014-2019, while GDP per capita is forecasted to exhibit a CAGR of 5.1% during this period.

Global Commercial or Corporate Card: Competitive Landscape

Some of the key players operating in the global commercial or corporate card market include AirPlus International,, Inc., American Express Company, Bank of America Corporation, Union Pay, Citigroup Inc. , FleetCor Technologies Inc., JCB Co., Ltd, JPMorgan Chase & Co., MasterCard, PayPal Holdings, Inc., U.S. Bank, Universal Air Travel Plan Inc., Visa Inc., and WEX Inc.

Global Commercial or Corporate Card Market: Taxonomy

  • On the basis of product type
    • Purchase Cards
    • Business Cards
    • Travel and Entertainment Cards
    • Others
  • On the basis of type
    • Open-Loop cards
    • Closed-Loop cards
  • On basis of application
    • Small Business Card
    • Corporate Card
  • On the basis of region
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East
    • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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