Researchers have released reports on their forecasts for the commercial card industry in two major markets: Europe and Asia-Pacific.
Both reports, revealed on Thursday (Aug. 25), signal new growth for the corporate card space in these geographies.
In Europe, researchers of a commercial and enterprise payment advisory service found one payment tool particularly poised for growth.
“The major opportunity should be in the virtual card/SUA space, although starting from a single base, given the inherent advantages to this product,” the researcher stated. Regulations, too, will impact the industry’s trajectory. “The European Union’s new Interchange Fee Reform regulations will have some impact on corporate card growth, but whether that is a shifting of spending to other payment types or simply a redistribution of card spending share remains to be seen.”
The report explores the expansion of commercial cards in Europe towards the end of the decade.
“Europe has not been a wholesale adopter of the commercial cards model, but expectations for growth of virtual payments are positive, especially in mid-to-large markets,” the announcement said.
In a separate report, researchers also examined the path of commercial cards for Asia-Pacific. In an announcement, researchers described the growth of the space as “robust and primarily associated with travel spend.”
“The diverse region is not necessarily an easy place to do business for financial institutions, but expectations for growth of purchasing cards and virtual cards are positive,” the announcement concluded.
According to forecasts, the last decade has yielded a nearly 20 percent annual growth rate for business travel spend, which provides a significant opportunity for commercial cards in the corporate travel space. Single-use accounts and virtual cards are also expected to gain more traction, as are procurement purchasing cards.