by Commercial and corporate cards are payment cards mostly used by businesses to pay for expenses related to travel, entertainment, utilities and other operational costs. Issued by financial institutions, corporate cards are linked directly to the company’s bank account and provide employees the flexibility to make payments without needing cash advances. This allows organizations to consolidate and better monitor all business-related expenses. Corporate card programs also offer robust rewards and cashback on categories like fuel, dining and flights which can help offset travel costs. The global Commercial and Corporate Card market is characterized by rising adoption across small and medium enterprises due to benefits like expense management tools, detailed spend reports and rewards on high-spend categories.
The global Commercial and 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 key trends:
Digital payment solutions are witnessing increased demand among corporate card users. Major card issuers are focusing on developing mobile-friendly platforms, apps and web portals that allow cardholders to seamlessly manage payments, track expenses in real-time and generate customized reports on-the-go. Fintechs are also launching corporate cards integrated with accounting software and expense management tools for simplified expense tracking and direct invoice payment capabilities. Rise of mobile wallets has further boosted the use of digital commercial cards for B2B transactions. As business travel and entertainment spending rebounds post pandemic, issuers are enhancing corporate card programs with upgraded rewards structures and partnerships with airline alliances and hotel loyalty programs.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the commercial or corporate card market is moderate. Established players dominate the market and have significant resources which raise the entry barriers.
Bargaining power of buyers: The bargaining power of buyers in the commercial or corporate card market is high. Large corporate buyers have significant influence over suppliers and can negotiate better terms.
Bargaining power of suppliers: The bargaining power of suppliers in the commercial or corporate card market is low. Large card issuers have established supply chains and suppliers have little influence over pricing.
Threat of new substitutes: The threat of substitutes is moderate. Alternatives like cash, checks limit the potential for credit and debit cards in certain transactions.
Competitive rivalry: Competition in the commercial or corporate card market is high among major card issuers.
Key Takeaways
The Global Commercial Or Corporate Card Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The global Commercial and 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 comprises North America dominates the commercial or corporate card market currently owing to high rates of card usage for business expenses. Europe and the Asia Pacific regions are expected to be the fastest growing markets during the forecast period with increasing acceptance of digital payments.
Key players operating in the commercial or corporate 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 (Toshiba Corporation). Adoption of innovative payment solutions and expanding partner networks are some of the key strategies being adopted by leading players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
