by The global Commercial or Corporate Cards 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), according to a new report published by Coherent Market Insights. The market is set to witness high growth, largely driven by the increasing adoption of digital transformation by businesses.
Market Overview:
Commercial or corporate cards are payment cards issued by financial institutions that enable businesses to manage their expenses more efficiently. These cards offer various advantages such as enhanced security, improved tracking and reporting, and simplified payment processes. With the growth of digital payment systems, businesses are increasingly recognizing the need for commercial cards to streamline their operations and improve financial management.
Market Key Trends:
One key trend in the Commercial Cards Market is the shift towards digital payment solutions. As businesses undergo digital transformation, the use of traditional payment methods such as cash and checks is being replaced by more sophisticated electronic payment systems. Commercial cards offer businesses a secure and convenient way to make payments, reducing the reliance on manual processes and improving efficiency. For example, the adoption of virtual cards for online transactions has seen significant growth, as it provides enhanced security and improved control over spending.
Porter’s Analysis:
– Threat of new entrants: The Commercial or Corporate Cards Market has high entry barriers due to the presence of established players and stringent regulatory requirements. This limits the threat of new entrants in the market.
– Bargaining power of buyers: Businesses have a significant bargaining power as they have the option to choose from multiple card issuers. This puts pressure on card issuers to provide competitive pricing and additional benefits to attract and retain customers.
– Bargaining power of suppliers: Card issuers have a strong bargaining power as they can set the terms and conditions for card acceptance and fees charged to merchants.
– Threat of new substitutes: While there are alternative payment methods available, such as wire transfers and digital wallets, commercial cards offer unique advantages in terms of security, reporting, and control.
– Competitive rivalry: The Commercial Cards Market is highly competitive, with key players such as American Express, Bank of America, and Citigroup dominating the market. Intense competition among these players drives innovation and leads to the development of new products and services.
Key Takeaways:
– The global Commercial Cards Market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period due to increasing digital transformation in businesses.
– North America is the fastest-growing and dominating region in the market, driven by the presence of major financial institutions and a highly developed financial infrastructure.
– Key players operating in the global Commercial Cards Market include AirPlus International Ltd., Amazon.com, American Express, Bank of America, Citigroup, JP Morgan Chase, U.S. Bancorp, Wex Inc., Wells Fargo, Corporate Spending Innovations Enterprises, NGC US and Bank of China.
In conclusion, the Commercial Cards Market is experiencing rapid growth driven by the demand for digital payment solutions and the need for businesses to streamline their financial management processes. As businesses embrace digital transformation, the use of commercial cards is expected to increase, leading to enhanced efficiency and improved financial control.
