The commercial payment card market has undergone a transformation in recent years as the associations and issuers strive to convince companies of the various benefits. Once a fairly simple market comprising travel and entertainment cards and fuel cards, the commercial payment card universe has become more complex with increased segmentation and functionality. But the lines between products have also blurred resulting in card products that combine several cards into one. Purchasing cards have emerged as the champion of commercial payments with the expectation of eventually replacing a substantial portion of paper-based procurement. The fact that commercial cards capture a mere fraction of total commercial payments highlights the potential of the opportunity at hand.

The financial crisis of 2008 that led to the economic meltdown in 2009 posed both a hurdle and an opportunity for the commercial payment card market. On the one hand, products such as small business cards suffered massive declines in purchase volume and skyrocketing charge-off rates. On the other hand, the consolidation of several major issuers and the weeding out of weaker players, combined with a new drive toward corporate cost control and efficiency, may have set the stage for a quick recovery in 2010.

This Packaged Facts report, which has been renamed from corporate credit cards, presents data and analysis on the global and U.S. market for commercial payment cards. The report presents the size and growth of the market by examining key metrics for the 2005-2009 period and providing forecasts through 2014. Included are discussions and analysis of the various commercial payment card types, trends and factors affecting their growth, and a focused analysis of commercial card end user demographics and preferences. In addition, major card brands and issuers are profiled to provide a competitive landscape.

Methodology

Packaged Facts’ study of commercial payment cards is based on extensive secondary research and interviews with industry and regional experts. Secondary sources include data-gathered from relevant trade, business, and government sources, including card industry journals, trade and general press (print and electronic), annual reports and 10(k) filings, company literature, consultancy publications, Packaged Facts reports, websites and white papers.

Packaged Facts’ analysis of consumer behavior and demographics derives from the spring 2009 Experian Simmons Market Research Bureau’s (New York, NY) adult consumer surveys, which are based on approximately 25,000 respondents age 18 or over.

What You’ll Get in this Report

Commercial Payment Cards makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Commercial Payment Cards offers.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report

If your company is already doing business in the commercial payment card market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for commercial payment cards, as well as projected markets and trends through 2014.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for commercial payment cards.

• Research and development professionals stay on top of competitor initiatives and explore demand for commercial payment cards.

• Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel businesses to use commercial payment cards.

• Business development executives understand the dynamics of the market and identify possible partnerships.

• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary

Scope

Commercial Payment Card Categories

Products Out of Scope

Methodology

Global Payment Card Market Tops $1.0 Trillion

Figure 1-1: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $)

Small Business Cards Lead Decline

Table 1-1: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $)

U.S. Market Accounts for Bulk of Global Purchase Volume

Table 1-2: U.S. Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Commercial Card Market to Grow in 2010

Figure 1-2: Global Commercial Payment Card Purchase Volume Forecast, 2009-2014 (in billions $)

Purchasing, Fleet to Add Most Purchase Volume

Table 1-3: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $)

U.S. Market Forecast

Table 1-4: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $)

Visa Leading U.S. Commercial Card Brand

Figure 1-3: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)

GDP Growth Stalls in 2009, to Rebound in 2010

Emerging Economies May Be Greatest Prospect for Commercial Cards

Charge-off Rates, Unemployment Go Sky High

Rising Delinquencies, Charge-offs, Unemployment to Continue Higher

“Real” Unemployment Rising, a Sign of Further Trouble Ahead

Total Firms Contract to 29 Million

Table 1-5: Total Number of U.S. Firms and Total Employment for Employer Firms and Non-Employers/Self-Employed, 2005-2009 (in millions)

Business Bankruptcies Skyrocket

Commercial Generated Revenues Down Dramatically in 2009, to Rebound in 2010

Figure 1-4: U.S. Commercial Generated Revenues and Percent of Total U.S. Firm Revenues, 2005-2014 (in trillions $)

Visa’s Commercial Consumption Measure

Commercial Card Trends in a Down Economy

Commercial Cards as Cost Reduction Tools

Commercial Cards Ready to Horn in on Paper and EFTs

Sagging Economy May Spur Adoption of Cards and Systems

Satisfaction is High

Managing Risk Through Analytics

Payment Fraud Up in 2008

Innovative Commercial Payment Options Reshape Market

Efficiency, Security and Control Price of Entry

Outsourcing Make Entry Easier

Global Marketing Spend of Major Brands Declining

Figure 1-5: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $)

Business Card End-User Demographics

15 Million Business Card Users

Table 1-6: Usage Rates for Selected Credit Card Classifications: Have or Use, Used 12 Months, and Used in last 30 Days, 2009 (% U.S. adults)

Baby Boomers are Top Card Users

Part-time Workers Less Likely, Self-Employed More Likely

Professional/Scientific/Technological Employees More Likely to Be Card Users

Business Purchasing Involvement: Dramatically High Across Brands
 

Chapter 2: The Market

Scope

Commercial Payment Card Categories

Products Out of Scope

Methodology

The Global Payment Card Market Overview

Rapid Expansion of the Global Payment Card Market

Global Payment Card Purchase Volume Declines in 2009

Figure 2-1: Global Payment Card Purchase Volume, 2005-2009 (in billions $)

Payment Cards Continue to Replace Other Forms of Payment

Table 2-1: Global Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

 

The Global Commercial Payment Card Market

Global Payment Card Market Tops $1.0 Trillion

Commercial Market in 2009 Plummets

Figure 2-2: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $)

Table 2-2: Global Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Global Market by Brand

Visa, Inc. Leads Global Market

Visa Europe Declines More Shallow

America Express No Longer on Top

MasterCard Growth Suffers From Advanta Collapse, Small Business

China UnionPay the One to Watch

Other Commercial Payment Brands Find Strength in Home Markets

Table 2-3: Annual Global Commercial Payment Card Purchase Volume by Brand, 2005-2009 (in billions $)

Global Brand Share Shifts in Visa’s Favor

Figure 2-3: Share of Global Commercial Payment Card Volume by Brand, 2009 (%)

Global Market by Category

Innovation into Category Extinction

Corporate Cards’ Steady Growth Falters

Small Business Cards Suffer Largest 2009 Decline

Purchasing & Fleet Cards Suffer from Lower Gas Prices

Prepaid & Benefit Cards Keep Growing

Table 2-4: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $)

Global Share by Category

Figure 2-4: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)

 

The U.S. Commercial Payment Card Market

U.S. Market Accounts for Bulk of Global Purchase Volume

U.S. Payment Card Purchase Volume Declines in 2009

Figure 2-5: U.S. Commercial Payment Card Purchase Volume and Percentage of Total Global Commercial Card Payment Volume, 2005-2009 (in billions $)

Table 2-5: U.S. Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

U.S. Market by Major Brand

Visa in U.S. Grabs Largest Share

American Express’s U.S. Business Suffers

MasterCard’s Robust U.S. Growth Does an About-Face

Discover Only a Minor Player

Table 2-6: Annual U.S. Commercial Payment Card Purchase Volume by Major Brand, 2005-2009 (in billions $)

 

Market Forecast

It Wasn’t a Very Good Year

Hope for a Rebound in 2010

Commercial Card Market to Grow in 2010

Figure 2-6: Global Commercial Payment Card Purchase Volume Forecast, 2009-2014 (in billions $)

Through 2014 Growth to Grow Purchase Volume by 50%

Table 2-7: Global Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2009-2014 (in billions $)

Global Market Forecast by Brand

China UnionPay Becomes a Player

Table 2-8: Global Annual Commercial Payment Card Purchase Volume Forecast by Brand, 2009-2014 (in billions $)

Global Market Forecast by Category

Purchasing, Fleet to Add Most Purchase Volume

Corporate Cards to Grow at Slower Pace

Prepaid, Benefit Card Volume Growth the Most Robust

Small Business Volume Growth May be Hampered

Table 2-9: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $)

U.S. Market Forecast

Figure 2-7: U.S. Commercial Payment Card Purchase Volume Forecast and Percentage of Total Global Commercial Card Payment Volume, 2009-2014 (in billions $)

Table 2-10: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $)