International Markets for Commercial Cards Remain a Good Business

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New research from Mercator Advisory Group examines the key commercial credit card markets outside of North America

One of the 4 exhibits in this research report

Companies across the globe seek more efficiencies and value from business-to-business (B2B) invoiced payments, which card schemes can provide through credit facilities, potential revenue share, and ‘risk-minimized’ virtual card accounts.

The major regional commercial credit card markets outside of North America continue to grow, albeit at varying pace depending on location and product. Mercator defines commercial credit cards as those serving the mid to large-market segments. The base growth is underpinned by corporate (travel and entertainment, or T&E) cards, which have been the general foundation of commercial card programs as they expanded from the United States during the past 15 years. The world continues to move in the direction of electronic payments, a trend representing ongoing opportunity for card schemes.

In a new research report, Commercial Cards Global Markets: Travel and Virtual Accounts Driving Growth, Mercator Advisory Group discusses the key trends impacting growth of commercial cards outside of North America, where the U.S. market has always been relatively robust. Business travel and regional growth combined with adoption of digital technology is helping to create opportunities for banks and their clients to find more effective methods to improve collections cash flow through payments processing efficiencies. This report presents Mercator Advisory Group’s review of commercial card results, trends, and issues in the eurozone (Western Europe) and Asia-Pacific regional markets.

“Although companies widely persist in using check-based payments, this usage is trending down in all markets. Companies across the globe seek more efficiencies and value from business-to-business (B2B) invoiced payments, which card schemes can provide through credit facilities, potential revenue share, and ‘risk-minimized’ virtual card accounts,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, and author of the report. “We see continued growth in the major regions through the end of the decade, despite some regulatory and other potential disruptors.”

Highlights of the report include:

  • A discussion of the residual impact of interchange fee reform (IFR) in Europe as well as the potential issues associated with the upcoming implementation of the revised Payment Services Directive (PSD2)
  • Detailed reviews of growth by commercial card product type in both the eurozone and Asia-Pacific region along with associated drivers
  • A drill-down into possible issues—wildcards—in various markets in Asia-Pacific
  • An overview of the spend volume of remaining world markets, not including North America
  • Conclusions regarding the other possible corporate payments technology disruptors

The report is 15 pages long and contains 4 exhibits.

Companies mentioned in this research report include: Alibaba, Amazon, American Express, China UnionPay, Google, Mastercard, PayPal, and Visa.

Members of Mercator Advisory Group's Commercial and Enterprise Payments Advisory Service and Global Payments Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media(at)mercatoradvisorygroup.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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