US Commercial Payment Cards Trends Report 2024: A $5.1 Trillion Market by 2027 - Fintechs Use Niche Expertise to Build Out Market Presence - ResearchAndMarkets.com

The "Commercial Payment Cards: U.S. Market Trends, 13th Edition" report has been added to ResearchAndMarkets.com's offering.

The report provides a detailed analysis of commercial payment card trends in the US and sizes the method of payment's global market. Commercial cards are a rapidly growing segment of the payment card market and the finance departments driving use demand seamlessness and evergreen innovation.

Through 2027, we estimate that US commercial cards will grow at a CAGR within the range of 16.6% to 21.0% while globally, commercial cards will grow to $81.6 trillion by 2027 with a CAGR of 5%.

Commercial cards in the US and globally have insinuated themselves into corporations by replacing checks and bank wire transfers with dynamic iterations of payment cards. Commercial cards integrated into spend management platforms allow finance departments to almost eliminate fraud and to put the power of corporate purchasing into the hands of more employees while maintaining complete control over how/where/when and dollars spent with payments.

In the US alone, there are 6.2 million employer firms, with 135 million employees, payrolls totaling $8.1 trillion and sales/shipments of $50.3 trillion. These companies spend $13 trillion on procurement, $300 billion on T&E, $304 billion on company fleets and fleet management. We estimate that only half of all employer firms use commercial or corporate cards which means the market size for new cards is 3.2 million firms.

Both commercial cards and Real Time Payments (RTP) are targeting the 3.1 billion checks totaling $8.45 trillion as well as corporate payments made by wire transfer and ACH.

Some of the most dynamic players in corporate payments are firms using expertise mastered over years in specific niches to develop comprehensive corporate spend and payments platforms using virtual payment cards. For instance, Corpay and WEX are the heavyweights of fleet cards and are experts at collecting time and location and buyer and seller details of each transaction. They have both leveraged their competencies with complex transactions to a larger corporate spend landscape.

Report Scope

• This report sizes the commercial card market both internationally and in the US with a break-out for each card type subsumed under the category. Additionally, it provides a forecast for global and US commercial card growth to 2027.
• Within the commercial card industry, product line extensions are a key driver of adoption and revenue as is the continuing displacement of legacy payment products, principally checks.
• While there are bank specific products entering the commercial payments space (e.g., real time payments), to date they have principally succeeded in reinvigorating commercial card innovators and spurring development of technology solutions that will keep commercial cards solidly growing for the foreseeable future.
• The largest international global payment networks include JCB, UnionPay, Visa, Mastercard, Discover and American Express.

Key Topics Covered:

Market Opportunity for Commercial Cards

Small Business Cards

Fintechs Use Niche Expertise to Build Out Market Presence

Global Market of Commercial Card Networks

• JCB
• UnionPay

US Commercial Card Market

• Total US Commercial Card Volume & Volume Forecast to 2027
• Small Businesses Tap Cred Credit Cards for Financing
• Payroll Cards
• T&E Spend

US Card Networks

• Visa
• Mastercard
• American Express
• Discover Financial Services

Leveraging Categories of Corporate Spend

• Travel and Entertainment
• Return to Business Travel Continues in 2024
• US Business Travel Back to 2019 Levels in 2024
• Fleet and Fuel Cards Become Platforms for Providers' Growth

Challenges and Solutions in the Commercial Card Business

• Challenge: Stasis of Business Optimism Strains Commercial Card Growth
• Solution: Fintechs Introduce Scalable Solutions to Specific Problems
• Challenge: Visa/Mastercard Duopoly Challenged by the Credit Card Competition Act of 2023
• Challenge or Solution? Real Time Payments
• Challenge: Virtual Card Friction at Vendor Must Be Addressed

Global Market of Commercial Card Networks

JCB

• JCB Dives into Europe with Fiserv Partnership

China UnionPay

• State Control of Financial Services Ensures Payments Align with Country's Agenda
• UnionPay is a Key Player in China's Economic Growth Strategy
• Growing Domestic Economy Boosts Number of Payment Cards
• Belt and Road Initiative
• Belt and Road and Payments

Discover Financial Services

• Discover is a Small Issuer with a Mighty Reach
• Highest Levels of Customer Satisfaction
• Discover Acquisition by Capital One

US Commercial Card Market

• US Commercial Card Forecast to 2027
• Small Business Cards
• Virtual Cards
• Government Commercial Cards
• Payroll Cards
• Largest Consumer Card Issuers Are Also the Largest Commercial Card Issuers

US Card Network

• US Network Overview

Visa & Mastercard Overview

Visa

Visa Commercial Solutions

Mastercard

American Express

Discover

Leveraging Categories of Corporate Spend

T&E Commercial Card Spend

• Global Business Travel Rebounding
• T&E Spending for Largest Corporate Users
• Airline Revenues Have Rebounded; Almost Reaching 2019 Levels
• Without Consistent Communication, Co-Branded Card Relationships Can Be Lost
• The Power of Co-Branded Credit Cards to Drive Behavior
• Travel - Almost Back to 2019 Levels
• Return to Business Travel Continues in 2024

Hotels - The Second Cornerstone of T&E

• In 2021 and 2022, Leisure Travel Brought Hotel Industry Back from the Brink
• Hotel Industry Recovered from Pandemic More Quickly Than Anticipated
• Who is Traveling?
• Co-Branded Relationships
• Fleet and Fuel Cards Become Platforms for Providers' Growth

Challenges and Solutions in the Commercial Card Business

Challenge: Stasis of Business Optimism Strains Commercial Card Growth

• Market Opportunities for Growth
• Fintechs Introduce Solutions to Specific Problems
• American Express Leverages Business Banking Account to Bring Small Businesses into a Relationship
• Fintechs are Forcing Traditional Issuers to Innovate
• Ramp Targets Card and AP Spend
• BILL Spend and Expense
• Brex: Outgrowing its Original Customer Base

Challenges

• Visa/Mastercard Duopoly Challenged by the Credit Card Competition Act of 2023
• Virtual Card Acceptance Roadblocks Must Be Remedied
• Challenge or Solution? Real Time Payments
• Challenge: Virtual Card Friction at Vendor Must Be Addressed

Companies Featured

• American Express
• Corpay
• Discover Financial Services
• JCB
• Mastercard
• UnionPay
• Visa
• WEX

For more information about this report visit https://www.researchandmarkets.com/r/t45ff4

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