Commercial cards are getting more advanced for corporate payers. From spend analytics and custom controls, to rewards tailored to the payer, the payment method is quickly finding a place in B2B payments.
According to new research from Mercator Advisory Group, there’s one market in the world in particular that has massive potential for commercial card expansion: Asia-Pacific.
Reports on Friday (Feb. 12) unveiled the release of the new research, which concluded that the growth of the commercial card in APAC is noteworthy. Researchers concluded that corporate travel is one of the key drivers behind this trend.
Researchers also acknowledged that the Asia-Pacific region may not be what first comes to mind when one thinks of corporate cards.
“The diverse region is not necessarily an easy place to do business for financial institutions,” Mercator Advisory Group said in its announcement, “but expectations for growth of purchasing cards and virtual cards are positive.”
Economic growth in the region over the last decade has helped fuel commercial card adoption, according to reports. In the last 10 years, spend growth via commercial card products has approached 20 percent.
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And while travel and expense management-focused card products are gaining significant traction, researchers also found that the market for procurement cards and single-use virtual cards are similarly on the rise.
Analysts anticipate double-digit growth for these corporate payment products through 2020.
“There are now a number of established markets and robust capabilities for commercial cards in the Asia-Pacific region, with room for increased spend capture in developed economics through greater middle-market adoption and program compliance,” stated Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service Steve Murphy.
Murphy, who also authored the report, added, “but it is a vast and diverse region, with nascent programs in many markets. Great opportunities for volume capture exist in China, India and the ASEAN member countries.”
