by Commercial cards help businesses manage cash flow and simplify expense reimbursements. Moreover, these cards offer cashback rewards, loyalty points and payment extensions that improve working capital.
The Global Commercial 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.
Key Takeaways
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 (Toshiba Corporation). These players are investing heavily in digitalizing card programs and introducing innovative payment solutions for businesses.
The growing demand from small and medium enterprises for easy payment and expense management solutions is a key factor driving the Commercial Or Corporate Card Market size he convenience offered by commercial cards in accounting, employee spending and streamlining payments is boosting their adoption among companies.
An increasing number of global businesses are issuing co-branded commercial cards in partnership with card networks and payment players to expand their presence across international markets. This is helping extend the reach of commercial card programs worldwide.
Market Key Trends
The integration of digital technologies with commercial card solutions is a notable trend in this market. Players are introducing contactless, mobile and digital commercial cards that can be used make payments through smartphones and wearable devices. This is improving user experience and driving more spending through commercial cards. Moreover, advanced digital features like virtual account numbers and one-time use card numbers are enhancing payment security for businesses.
Porter’s Analysis
Threat of new entrants: Low as there are high capital needs and presence of established brands. Bargaining power of buyers: Moderate as there are few alternative providers giving buyers some power. Bargaining power of suppliers: Low as there are many suppliers for raw materials and components. Threat of new substitutes: Moderate as digital payment options are emerging as substitutes for cards. Competitive rivalry: High as major players compete aggressively on pricing, features and services.
Geographical Regions
North America dominates the commercial card market in terms value as companies in the region have adopted commercial cards on a large scale for managing business expenses of employees. The Asia Pacific region is the fastest growing market for commercial cards owing to rapid economic growth, rising spending power and increasing acceptance of digital payment solutions in countries like China and India.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
