As the service providers attempt to broaden the reach into small and midsized fleets, collaboration with open loop network products will increase. This is one way to offset fuel price volatility and efficiency impacts, while a looming change is also there from the effects of alternative vehicles.
BOSTON (PRWEB) January 07, 2020
The fleet (fuel) card market saw continued growth during the past year, but headwinds are forming through fuel efficiencies and increasing alternative vehicle growth. Industry leaders are adapting in several ways, with technology and tactical policy/product changes creating potential new growth opportunities.
In a new research report, U.S. Fleet Card Market Review and Forecast, 2018–2023, Mercator Advisory Group reviews the estimated current market size and network share, projecting spending through 2023. The report delves into the issues and trends affecting this niche portion of the payments industry.
“The closed loop network portion of the spending continues to predominate since industry legacy approaches reside with larger fleets and the specialized controls associated with the more abundant data capabilities in these systems,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “As the service providers attempt to broaden their reach into small businesses and midsized fleets, collaboration with open loop network products will increase. This is one way to offset fuel price volatility and efficiency impacts in the shorter term, while a looming change is also there from the effects of alternative vehicles. Industry participants recognize the challenges and a need to adapt to the latest-generation technology, and there is general optimism that challenges will be met successfully.”
Highlights of the report include:
- Estimated share of closed and open loop network spending in fleet cards in the United States.
- Review of key challenges facing the industry service providers, including the mandate for electric logging devices (ELD) and the upcoming EMV liability shift.
- Projected U.S. overall open and closed loop spending through 2023.
- Analysis of the future trend toward electronic vehicles and adoption across fleets in the U.S.
The document is 16 pages long and contains 5 exhibits.
Companies and other organizations mentioned in this report include: American Express, AT&T, Comdata, CyntrX, EFS, FleetCor, Geotab, GlobalStar, GPS Insight Mastercard, MSTS, Navistar, OmniTracs, Spireon, Teletrac Navman, Tom Tom, Trimble, UPS, U.S. Bank, WEX, Verizon, and Visa.
Members of Mercator Advisory Group's Commercial and Enterprise Payments Advisory Service and Merchant Services Advisory Service have access to this report as well as 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.