The U.S. Commercial Card Market: A Growing Virtual Reality

  • ID: 3947599
  • Report
  • Region: Global, United States
  • 20 Pages
  • Mercator Advisory Group
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Buyers and Suppliers Seeing the Value-Add in Electronic Accounts Payable

FEATURED COMPANIES

  • AOC
  • Bora Payment Systems
  • Comdata
  • CSI Enterprises
  • Verient
  • WEX
  • MORE

The U.S. commercial card market continues to grow at rates higher than other business-to-business (B2B) payments types. According to the authors estimates, between 2013 and 2015, U.S. commercial card purchase volume grew at a compound annual growth rate of 9%; we expect to see high-single-digit growth through the next several years.

Spending volumes continue to be dominated by the traditional leading commercial card issuers, but share is shifting somewhat to emerging smaller issuers. The major industry growth driver is electronic accounts payable (EAP) as both buyers and suppliers have increasing awareness of the value of card-based products in the payables flow.

In a new research report, The U.S. Commercial Card Market: A Growing Virtual Reality the author reviews the corporate purchasing and virtual credit card landscape for the mid to large corporate market sectors. The report discusses how virtual card payments, led by single-use accounts (SUA), are driving the current growth trends.

"The increase in U.S. commercial card purchase volume in 2015 was largely driven by P-card-related spend, including virtual accounts in both reusable and single-use forms. Traditional commercial card accounts (walking plastics for both travel and procurement) continue to grow between 4% and 7% combined," commented Steve Murphy, Director of Commercial and Enterprise Payments Advisory Service and author of the report. "That portion of the market is more heavily dependent on economic indicators like GDP. But double-digit growth in EAP has been the driving force behind the recent higher commercial card growth. The author expects that this trend will continue over the next four years".

Highlights of the research report include:

  • A review of the current factors contributing to the growth of business-to-business (B2B) payments overall and commercial cards specifically
  • A detailed review of the products in the commercial cards space
  • Growth projections for commercial credit card product types through 2019
  • Detailed reviews of electronic accounts payable (EAP) and the factors behind surging single-use account (SUA) spend
  • Network, issuer, and market sector views and perspective
  • A discussion of the opportunities and potential threats in the U.S. commercial card industry
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FEATURED COMPANIES

  • AOC
  • Bora Payment Systems
  • Comdata
  • CSI Enterprises
  • Verient
  • WEX
  • MORE

1. Executive Summary

2. Introduction

3. Commercial Card Product Landscape, with Product Types Defined
Credit Based
Noncredit

4. Trends in Traditional and Virtual Cards

5. The U.S. Commercial Card Market
Growth Projections
Corporate Volume Segments

6. Network and Issuer Perspective
Branded Networks
Issuer Perspective

7. A Closer Look at Virtual Accounts
Electronic Accounts Payable (EAP)
SUA Usage
Supplier Enablement

8. Other Market Considerations: Opportunities and Possible Threats
Commercial Mobile Opportunity
Regulations
Faster Payments
Fintech: More Opportunity Than Threat?

9. Conclusions

10. Endnote

List of Figures

Figure 1: P Card Spend as a Percentage of Overall B2B Payments, 2014
Figure 2: The U.S. Commercial Card Product Landscape, 2016
Figure 3: U.S. Commercial Card Purchase Volume by Product Type, 2013-2019
Figure 4: U.S. Commercial Card Purchase Volumes by Product Type as Percentage of Total, 2013E-2019F
Figure 5: U.S. Commercial Card Purchase Volumes by Corporate Type: Large vs. Middle Market, 2013E-2015E
Figure 6: U.S. Commercial Card Purchase Volume Market Percentage Share by Network, 2013E-2015E
Figure 7: SUA Spend to Exceed Traditional P Cards by 2021

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  • AOC
  • Bora Payment Systems
  • CSI Enterprises
  • Comdata
  • Verient
  • WEX
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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