Commercial or Corporate Cards Market To Reach CAGR of 7.3% By 2026 | AirPlus International Ltd., Amazon.com, American Express Company, Bank of America Corporation, Citigroup, JP Morgan Chase & Co, U.S. Bancorp, Wex, Wells Fargo & Company

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).

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.

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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.

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.

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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

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This release was published on openPR.