Rockville, MD (PRWEB) May 08, 2014
Commercial payment cards are catching on in both the U.S. and abroad. As a result, global commercial card purchase volume is forecast to increase by 13% in 2014 and 2015, rising from $888 billion in 2013 to $1.4 trillion to $1.8 trillion as both small businesses and larger corporations fuel growth. The finding was made in Commercial Payment Cards: The U.S. and Global Markets and Trends, 8th Edition, a recently released report by market research publisher Packaged Facts.
Several factors affect commercial card growth drivers and trends. Chief among them is globalization, which is occurring at a rapid pace. For payments networks and financial institutions to meet the increasingly global needs of the world’s large corporations, they must grow along with them, according to the report. This has inevitably caused growing pains, as players struggle to craft solutions sophisticated and robust enough to meet global challenges of many stripes—regulatory and operational hurdles among them. Ultimately, it means expansion—following the arc of global growth and growing products and solutions accordingly, notes Packaged Facts research director David Sprinkle.
Fortunately, major U.S. financial institutions such as Bank of America, Citibank, JPMorgan Chase, Wells Fargo and U.S. Bank (not coincidentally the largest U.S. commercial banks by total assets in 2013) appear up to the task. This, in turn, means increased product and price competition. Thickening the competitive broth, both Visa and MasterCard continue to support card issuers such as Citibank, JPMorgan Chase and U.S. Bank, including by improving data collection and reporting to meet customers’ requirements. And undoubtedly the rise of global competition and activities from the likes of Chinese powerhouse UnionPay and Japanese credit card product and service provider JCB only further emphasize the seismic developments shaping the future of this industry segment.
In addition to product and price competition, other key competitive factors in the corporate payments business include global servicing capability, quality of data, and access to additional services, such as reporting and program management tools, and customer experience, as well as the evolution toward payment products that integrate with corporate expense management tools and support electronic payment methods. It also means that payment providers have expanded global issuance footprints and product portfolios by forming partnerships and improving proprietary capabilities.
For more information on Commercial Payment Cards: The U.S. and Global Markets and Trends, 8th Edition, please visit: http://www.packagedfacts.com/Commercial-Payment-Cards-7932719/
About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.