by The Commercial or Corporate Card 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 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Commercial or Corporate Card Market offers a wide range of business payment solutions that streamline financial transactions and provide better control over cash flow. These cards are specifically designed for businesses to manage their expenses efficiently and enhance productivity. The market offers various types of commercial cards, including travel and entertainment cards, purchase cards, and fleet cards. These cards provide benefits such as consolidated reporting, expense tracking, fraud prevention, and rewards programs.
Market Dynamics:
The growth of the Commercial or Corporate Card Market is driven by the rising demand for streamlined payment solutions in businesses. Corporate cards offer greater convenience, security, and transparency compared to traditional payment methods. They eliminate the need for manual expense reimbursements, reduce paperwork, and provide real-time reporting, helping businesses effectively manage their expenses. Furthermore, the increasing adoption of corporate cards in emerging economies is expected to fuel market growth. As businesses in these regions continue to grow, the need for efficient payment solutions and expense management tools is also increasing.
Segment Analysis:
The Commercial or Corporate Card market can be segmented based on card type and industry. In terms of card type, the dominating segment is the travel and entertainment cards, which are specifically designed for employees who frequently travel for business purposes. These cards offer various benefits such as travel rewards, airline lounge access, and hotel discounts, making them highly attractive for business travelers. The travel and entertainment segment is dominating due to the increasing number of corporate travelers globally and the rising trend of companies encouraging their employees to use corporate cards for travel expenses. Additionally, the travel and entertainment segment is witnessing significant growth due to the convenience and control it offers to companies in managing and tracking travel-related expenses.
PEST Analysis:
– Political: The political environment plays a crucial role in the Commercial or Corporate Card market as government regulations and policies related to financial transactions and data security can impact the market dynamics. Increasing government focus on data privacy and regulations related to cross-border transactions can pose challenges for market players.
– Economic: The economic factor influences the spending patterns of businesses and individuals, which in turn affects the demand for commercial or corporate cards. Economic growth, disposable income, and business expansion plans contribute to the growth of the market.
– Social: Social factors such as changing consumer behavior, increasing awareness of financial control and transparency, and the rising trend of cashless transactions positively impact the demand for commercial or corporate cards.
– Technological: The technological factors include advancements in payment technologies, mobile applications, and data analytics, which have significantly transformed the commercial card industry. The adoption of innovative technologies facilitates secure payments, enhances user experience, and provides efficient expense management solutions.
Key Takeaways:
The global Commercial or Corporate Card market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period of 2023-2030, reaching a market size of US$ 26.3 billion. The growth can be attributed to the increasing number of corporate travelers and the advantages offered by commercial cards in managing travel and entertainment expenses.
Regionally, North America is expected to be the fastest-growing and dominating region in the market. The presence of key market players, such as American Express, Bank of America, and Wells Fargo, coupled with the high adoption rate of commercial cards in this region, contribute to its dominance.
Key players operating in the Commercial or Corporate Card 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. These key players have strong market presence and offer a wide range of innovative solutions to meet the diverse needs of businesses in managing their corporate expenses.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
