by The commercial or corporate card market comprises of payment cards issued to employees of an organization to make payment on behalf of the organization. These cards are primarily used for purchase of goods and services required by the organizations. Major types of commercial cards include purchase cards, corporate travel & entertainment cards, and fuel & fleet cards. Purchase cards are the most commonly used type for procurement of supplies, inventory, and other items for the organization. Corporate travel & entertainment cards are used for booking flights, hotels, meals, and other related expenses during business trips. Fuel & fleet cards help manage fuel and maintenance spending on company vehicles.
The global commercial or corporate card market is estimated to be valued at US$ 5.3 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing digitization in payment industry has emerged as a key driver of commercial card market over the past decade. With widespread adoption of digital wallets, online banking, and mobile payment apps, companies are increasingly embracing digital commercial cards to manage expenses of employees on the go. Digital commercial cards enable easy loading of funds, virtual storage of card credentials on mobile devices, and contactless payments at merchant locations with enhanced security features like transaction limits and virtual card numbers for one-time use. This has streamlined the procurement process while reducing dependence on physical plastic cards. Moreover, digital payments offer better control over spending through integration with expense management software and real-time expense tracking dashboard. Another driver of the market has been rising demand for centralized payment solutions by organizations. Commercial cards provide benefits like consolidated billing, rewards programs, easy expense tracking and management which help companies gain better control and visibility over payments.
Segment Analysis
The commercial card market is segmented based on business line, functional use, and commercial card type. The corporate cards sub-segment dominates the market as it provides various benefits to companies such as employee spending control, extended payment terms, and rewards. Corporates issue corporate cards to employees for work-related expenses to streamline the expense management process.
PEST Analysis
Political: Government initiatives to promote digitization and cashless transactions are boosting the commercial card market. Many countries offer tax benefits for corporate card usage.
Economic: The growth of the service industry and remote working culture is driving demand for corporate cards. It allow seamless business expense management.
Social: Younger workforce prefers digital payment methods for convenience and rewards. Commercial cards help build improved corporate branding and engagement.
Technological: Advancements in payments technologies like contactless, mobile wallets and business analytics tools are enhancing the utility of commercial cards. It is increasing adoption.
Key Takeaways
Global Commercial Or Corporate Card Market Size is expected to witness high growth over the forecast period aided by rapid digitization. The global commercial or corporate card market is estimated to be valued at US$ 5.3 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.
Regional analysis – North America is the largest market for commercial cards currently. The high business spending levels and growing trend of digital payments are fueling market growth. Asia Pacific is expected to witness the fastest growth over the forecast period led by developing countries pushing commercial digitization.
Key players – Key players operating in the commercial card market 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. These players are focusing on product innovation and collaboration with fintech companies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
