Way Beyond Plastic: The Status and Prognosis of Purchasing and Corporate Cards
Report Summary
Way Beyond Plastic: The Status and Prognosis of Purchasing and Corporate Cards
While use of commercial cards remains low, significant room for growth exists.
Boston, March 22, 2012 – A new report from Aite Group focuses on trends in the global purchasing card (p-card), corporate T&E card, and card-derivative product markets. Based on 16 interviews with a range of constituents in the global commercial card markets, including banks, processors, and card networks, the report sizes the market, outlines opportunities for banks and vendors, and provides insight into the effect of new regulations.
The sum of all commercial card expenditures in 2010 represented less than 1% of total commercial expenditures. Given the benefits these cards can provide, significant room for growth exists. Some of these benefits include improved consistency of data, a complete picture of supplier relationships, the ability to ensure timely payment for the seller while delaying cash outflow for the buyer, real-time reporting of employee spending, and an easier process for making international payments. Aite Group projects continued growth in issuer revenue for both p-cards and corporate T&E cards.
“Banks and vendors continue to see strong opportunities in corporate T&E and purchasing cards and card-like solutions, but need to extol the benefits of these payment mechanisms in order to support growth,” says Nancy Atkinson, senior analyst with Aite Group and author of this report.
The following companies are referenced in this report: American Express, Discover, First Data, FIS, Fiserv Inc., JCB Cards, MasterCard, TSYS, and Visa.
This 24-page Impact Note contains 15 figures and two tables. Clients of Aite Group’s Wholesale Banking service can download the report.