The commercial card market has seen significant growth over the past decade, driven primarily by the need for corporates to better manage expenses and increase accountability. Commercial cards provide advanced payment solutions and consolidate spend reporting, enabling organizations to optimize payment processes and policies. Key features like spend control tools, reward programs and integration with accounting software have made them a popular choice for expense management.

Commercial cards are payment cards issued to businesses to make purchases on behalf of the company. They can be used for a wide range of expenses like travel, entertainment, supplies and vendor payments. The global commercial card market provides multiple types of cards like purchase cards, corporate credit cards and fuel cards tailored to different spend categories. With the ability to set spending limits and controls at both the corporate and user levels, commercial cards offer enhanced visibility and accountability over spending. The associated benefits like cashback, rewards and billing discounts further incentivize organizations to transition to commercial cards from legacy payment methods.

The Global Commercial or Corporate Card Market is estimated to be valued at US$ 5.3 Billion in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period between 2024 to 2031.

Key Takeaways

Key players operating in the Commercial Card Market Size  are ABB Ltd., Fuji Electric Co. Ltd., Havells India Ltd., Powell Industries, Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, Schneider Electric, Hitachi Ltd., Siemens AG, Meidensha Corporation, Eaton Corporation PLC, and Toshiba International Corporation (Toshiba Corporation). These players are focusing on developing advanced payment solutions to further expand their market share.

The demand for commercial cards is growing significantly as more corporates recognize their advantages over legacy payment methods for managing expenses. Features like detailed tracking of spends, added security, improved approvals workflow and tighter integration with accounting tools are fueling adoption.

Globally, commercial card usage is spreading fast as companies expand their operations internationally. Vendors are localizing product offerings, integrating with payment networks worldwide and adding multi-currency support to tap into new geographic markets. Partnerships with banks and payment facilitators are helping issuers penetrate developing regions at a rapid pace.

Market Drivers

The primary driver boosting the commercial card market is the need for improved expense management capabilities. As corporate spending becomes more complex with a diverse vendor landscape and a mobile workforce, companies need tools to automate approvals, enforce controls and gain consolidated visibility of expenses. Commercial cards address these requirements by providing features like user-defined controls, purchase categorization and reporting tools. This is driving more organizations to adopt commercial cards to simplify expense tracking and management.

Impact of geopolitical situation on the growth of commercial or corporate card market:

The ongoing geopolitical tensions and imposition of trade restrictions across major economies are impacting cross-border trade and businesses. The rising protectionism is disrupting supply chains, while economic uncertainties due to conflicts are delaying large capital expenditure decisions of corporates. This is hampering the growth of corporate card market which relies on increased B2B transactions and travel & entertainment spend of businesses. For sustained growth over the forecast period, issuers need to focus on diversifying their portfolio across low risk domestic markets and expanding product offerings to cater to evolving payment needs of businesses. Global alliances can potentially offset risks from conflicts in certain regions. Additionally, tie-ups with FinTechs providing specialized solutions will help issuers tap into new corporate customer segments.

Geographical regions of concentration for commercial or corporate card market value:

Currently, North America accounts for the largest share of the overall commercial card market value globally, led by a strong economy and widely accepted card-based payments. Growing adoption of new technologies by businesses coupled with initiatives by card issuers to promote card usage is further stimulating market revenues. Europe is another major regional market supported by robust payment infrastructure and issuers promoting card benefits over cash payments. However, the Asia Pacific region is identified as the fastest growing market over the forecast period due to rapid economic expansion, rise of SMEs and increasing digitalization of B2B payments in countries like China and India.

Fastest growing region for commercial or corporate card market:

The Asia Pacific region is poised to witness the fastest growth in the commercial card market over the forecast period supported by a few factors. There is a rising number of domestic and multi-national companies in the region presenting substantial opportunities for issuers. Governments are also promoting non-cash payments to drive financial inclusion. Issues like Visa B2B Connect are enabling Asian banks to offer corporate cards more seamlessly . Moreover, digital savvy businesses are rapidly adopting FinTech solutions for integrated payment, expense control and data insights. This is positively influencing the adoption of commercial cards in the region. Countries like India and China will dominate market revenues from Asia Pacific.

Get more insights on This Topic- Commercial Or Corporate Card Market