Commercial or Corporate Cards Market to Surpass US$ 49.3 Billion by 2026

Published On : Feb 06, 2019

The global commercial or corporate cards market was valued at US$ 1,26.3 billion in 2017 and is projected to reach US$ 1,49.3 million by 2026, registering a CAGR of 7.3% over the forecast period (2018-2026), according to Commercial or Corporate Cards Market Report, By Product Type (Purchase Cards, Business Cards, Travel & Entertainment Cards, and Gift Cards), By Card Type (Open-loop cards and Closed-loop Cards), By End User (Small & Mid-sized Enterprises and Large Enterprises), and By Region, published by Coherent Market Insights.

Increasing focus by corporates to optimize working capital is one of the major factors driving growth of the commercial or corporate cards market. Moreover, stringent government regulations and rising demand for business cards globally is further boosting the market growth. Commercial or corporate cards help firms in maintaining a perfectly controlled and compliant procure-to-pay process, right from the placement of orders to financial reporting. For instance, the U.S. Sarbanes-Oxley Act of 2002 (SOX) significantly impacted procure-to-pay processes of mid- to large-size companies. The act mandated requirements, which included standardized processes, enhanced reporting capabilities, increased ability to detect fraud, improvements in data access capabilities, and conducting control reviews on a periodical basis.

Another factor that aided in growth of the market is the changing restrictions that increased the acceptance of corporate or commercial cards in the payment facilitator model. For instance, companies such as Visa and Mastercard permit service providers, acting as a payment facilitator, to accept card transactions on behalf of multiple smaller merchants. The payment facilitator model enables B2B fintech platforms to extend purchasing card acceptance among suppliers who are leveraging the platform’s merchant acquiring facility. This facility allow merchants to accept credit card payments from card issuing banks within an association.

However, increasing usage of personal credit cards and acceptance of business cards among suppliers hinders the market growth. For instance, the cardholder or the purchaser pays 1% to 3% of the card processing fee while rest of the fees need to be paid by the merchant. The fees that has to be paid by merchants for accepting card payments include license fees, interchange fees, acquirer fees, and processing fees. These additional fees deter small merchants from accepting card payments and thereby, hinders growth of the market.

To know the latest trends and insights prevalent in this market, click the link below:

https://www.coherentmarketinsights.com/market-insight/commercial-or-corporate-card-market-2091

Browse 198 market data tables* and 50 figures* on "Commercial or Corporate Cards Market” - Global forecast to 2026.

Key Takeaways of the Market:

  • North America held dominant position in the global corporate or commercial cards market in 2017 and is projected to retain its dominance throughout the forecast period. The U.S. and Canada are the major growth engines of this region. High presence of SMEs and large-sized enterprises such as Microsoft Corporation and International Business Machines Corporation (IBM) is expected to drive growth of the market in the region. According to Coherent Market Insights’ analysis, in 2017, North America accounted for 45.8% of the total commercial or corporate cards market globally. Moreover, rising trend of adoption of commercial cards for a start-up and increasing adoption by the companies who were not previously using commercial cards are expected to aid in growth of the corporate or commercial cards market.
  • 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

About Coherent Market Insights:

Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.

Contact Us:

Mr. Shah
Coherent Market Insights
1001 4th Ave, 
#3200 
Seattle, WA 98154
Tel: +1-206-701-6702
Email: [email protected]

"How Can I Help You" ?

Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.

Coherent Market Insights Benefits

  • Custom Research Solution

    Talk to our research consultant to design an exclusive report as per your research needs.

  • Customer Fulfilment

    We aim to fulfil client's research demands with tailored research solutions.

  • Quick Turnaround Time Reports

    We aim to provide research studies in quickest turnaround time and in a much cost effective manner.

  • 360-degree Approach

    We cover each industry from supply and demand side with an aim to provide a most holistic research study.

  • Assured Quality

    We strive to provide most accurate and reliable research findings in our research reports.