by The global 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 2018-2026, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Commercial or Corporate Card Market includes credit, debit, and prepaid cards, specifically designed for corporate use. These cards provide various advantages such as improved expense management, enhanced control and security, and simplified procurement processes. With the increasing globalization and digitization of businesses, the demand for cashless transactions is rising among corporates. Commercial cards offer a convenient and secure mode of payment and help businesses streamline their financial operations. This market report provides insights into the market size, share, and growth potential of commercial or corporate cards.
Market Key Trends:
One key trend in the Commercial or Corporate Card Market is the adoption of technology-driven solutions, such as mobile wallets and virtual cards. With the growing smartphone penetration and advancements in payment technologies, corporates are increasingly adopting digital payment solutions for their financial transactions. Mobile wallets enable users to make payments using their smartphones, eliminating the need for physical cards. Virtual cards, on the other hand, provide a secure and convenient way to make online payments without sharing actual card details. The adoption of these technology-driven solutions is expected to drive the growth of the Commercial or Corporate Card Market.
Porter’s Analysis
The Commercial Or Corporate Card Market is expected to witness high growth over the forecast period, with a Compound Annual Growth Rate (CAGR) of 7.3%. This analysis will evaluate the various factors impacting the market using Porter’s Five Forces framework.
Threat of new entrants: The threat of new entrants in the commercial or corporate card market is relatively low. This is due to high entry barriers such as regulatory requirements, capital investment, and established relationships with suppliers. Existing key players have a strong market presence and brand recognition, making it difficult for new entrants to gain a significant market share.
Bargaining power of buyers: Buyers in the commercial or corporate card market have moderate bargaining power. While the demand for these cards is growing, buyers have the ability to choose from a range of providers. However, switching costs and the benefits of using established card networks limit the bargaining power of buyers to a certain extent.
Bargaining power of suppliers: Suppliers in the commercial or corporate card market, such as payment processors and software providers, have low bargaining power. This is due to the presence of numerous suppliers in the market, providing buyers with a wide range of options. Additionally, the dominance of key players and their ability to negotiate favorable terms further weakens the bargaining power of suppliers.
Threat of new substitutes: The threat of new substitutes in the commercial or corporate card market is low. Traditional payment methods such as cash and checks are gradually being replaced by digital payments, including card payments. The convenience and security offered by commercial or corporate cards make them a preferred choice over substitutes.
Competitive rivalry: The competitive rivalry in the commercial or corporate card market is high. Key players such as AirPlus International Ltd., Amazon.com, Inc., and American Express Company, among others, compete for market share through product innovation, partnerships, and competitive pricing. This intensifies the competition in the market and leads to continuous efforts to differentiate products and services.
Key Takeaways
The global commercial or corporate card market is expected to witness significant growth, with a CAGR of 7.3% over the forecast period. This growth is primarily driven by the increasing adoption of digital payment methods in various industries, including travel and entertainment, healthcare, and retail. The convenience, transparency, and enhanced control provided by commercial or corporate cards are driving their demand among businesses.
From a regional perspective, North America is expected to be the fastest-growing and dominating region in the commercial or corporate card market. This can be attributed to the high level of technological advancements, strong presence of key players, and favorable regulatory environment supporting the adoption of commercial or corporate cards.
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 are focusing on strategic partnerships, product innovation, and expanding their geographic presence to gain a competitive advantage in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
