The pre-pandemic growth trajectory was good overall in North America, as 2019 virtual card spend exceeded corporate travel card spend for the first time. The comeback in spend longer term is going to be more associated with utilization of card rails in payables as the recessionary curve unfolds.
BOSTON (PRWEB) August 17, 2020
The commercial credit card market for mid-to large corporates in North America has been in a generally strong growth mode for the past several years. In North America, the most mature commercial credit card market, recent growth has been primarily boosted by non-travel spend as the industry continues its transition to B2B payables relevancy. As a result, the extended suspension of business travel, although a damaging blow to issuer bottom lines into 2021, will be somewhat offset by subsequent gains in business-to-business payments as companies accelerate digital adoption. The utilization of purchasing cards (P cards) and non-travel virtual cards is more directly tied to broader economic activity, the growing use of electronic payments methods, and replacement of checks and cash in the payables process.
Mercator Advisory Group’s latest research report, Commercial Credit Cards: North America Market Review and Forecast, 2018-2024, provides a detailed review of the commercial credit card markets in Canada and the United States, including an analysis of how the pandemic impacts spend during 2020-21, as well as recovery expectations through 2024.
“The pre-pandemic growth trajectory was quite good overall in North America, as 2019 virtual card spend exceeded corporate travel card spend for the first time,” commented Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service, author of the report, “so the comeback in spend longer term is going to be more associated with utilization of card rails in payables as the recessionary curve unfolds.”
Highlights of the report include:
- A review of the economic impact that COVID-19 is having in the region
- Correlation analysis between overall regional credit card spend and the economic downturn through 2021
- Commercial credit card spending forecasts for Canada and the U.S. through 2024
- Key industry trends in technology and client expectations
This report is 17 pages long and has 7 exhibits.
Companies and other organizations mentioned in this report include: American Express, Diners Club, Interac, International Monetary Fund (IMF), Mastercard, PNC Bank, R3, SAP Concur, The Conference Board, Visa, World Health Organization
Members of Mercator Advisory Group’s Emerging Technology Advisory Service, 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.
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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.