Research and Markets has announced the release of their new report, “Commercial Payment Cards: The US and Global Markets and Trends, 8th Edition”. According to the report, while US consumer credit card spending may still be pressured, commercial card purchase volume is moving full steam ahead.
Commercial card purchase volume grew by 13% in 2013, reaching $888 billion. But commercial cards are catching on in both the U.S. and abroad: it is forecast that global commercial card purchase volume to grow by 13% in 2014 and in 2015, rising from $1.4 trillion to $1.79 trillion, with both small businesses and larger corporations fueling growth.
The global landscape is quickly shifting, due in part to the quick ascension of UnionPay, which now generates more commercial card purchase volume than JCB, BC Card and Discover/Diner’s Club – and surpassed Visa in 2013 as the largest network by credit and debit purchase volume. With globalization occurring at a rapid pace, payments networks and financial institutions are growing alongside the world’s large corporations, eager to meet the needs of multinational corporations and enter new markets.
U.S. commercial banks have worked hard to close the commercial payments gap with competitors such as American Express, that is seen as the “Apple” of corporate payments because it can offer can offer cards, service, solutions, and a network under one roof. To compete, U.S. commercial banks are developing in-house proprietary solutions as well as drawing from Visa and/or MasterCard solutions—and tapping their unsurpassed global location reach. American Express has come into 2014 swinging, keen to leveraging third-party merchant acquiring relationships via its OptBlue U.S. small merchant acquisition.
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