Commercial or corporate cards provide extensive data on transactions through a variety of billing and payment methods for commercial card activity, assisting businesses in managing cash and vendors more efficiently. Businesses that accept payments with commercial cards are normally responsible for paying the associated fees. For example, according to National Automated Clearing House Association's (NACHA) analysis from 2015, issuers like corporations, investment trusts, or foreign governments made over US$ 7 to US$ 8 billion in interchange revenue by processing US$ 428 billion in commercial card payments, with about 80% of that revenue going back to corporate issuers of commercial cards. Additionally, they are becoming more and more popular among consumers because they enable fast access to short-term loans, which is the primary reason why they choose corporate cards to cash. Companies that issue corporate cards reward cardholders with incentives like points and awards that can be used to buy goods or plane tickets. In the corporate or commercial card sector, these variables increase corporate card transactions.
Market Players in the Commercial Or Corporate Card Industry:
In 2017, the market for business or commercial cards earned $26.3 billion in revenue. The market for business or corporate cards is anticipated to reach US$ 49.3 billion in value by 2026, growing at a 7.3% CAGR over that time.
1. AirPlus International Ltd.: Service provider for logistics. The business offers its clients in the United States logistical, transportation, and warehousing services. Established in 1990. In the Benelux, AirPlus maintains its expansion and solidifies its position as a business credit card provider.2016 fiscal year.
2. Amazon.com, Inc.: created in 1994. Head office in the United States. With $386 billion in net sales and a projected $578 billion in physical and digital online gross product volume in 2021, Amazon is a top online retailer and one of the top e-commerce aggregators.
3. American Express Company: Travel and spending management service provider. The business offers various financial services, including payment tools, savings accounts, travel insurance, credit card issuance, corporate travel card issuance, and other services. Headquarters in the United States; founded in 1850. Nipendo (Jan 2023), BodesWell (Jun 2022), and Kabbage (Aug 2020) are the most recent acquisitions.
4. Bank of America Corporation: One of the biggest names in banking and financial services in the US is Bank of America, or Bank of America Corporation. It was created in 1998 as a result of BankAmerica being acquired by NationsBank. The main office of Bank of America is located in Charlotte, North Carolina.
5. Citigroup, Inc.: A worldwide commercial bank with its headquarters in New York City, Citigroup was founded in 1812. The company offers a wide range of financial products and services to individuals, businesses, governments, and organisations, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. In 2002, Citigroup continued to use the red "umbrella" brand that Travellers Insurance had created, but it separated out the property and liability businesses to form Travellers Property liability Corp.
6. JP Morgan Chase & Co. Inc: JPMorgan Chase & Company, an investment bank with its main office in New York City, was founded in 2000. Consumers, small enterprises, commercial banking, financial transaction processing, and asset management are all services provided by the company. Investment Bank was established in 2000. Founded 1877. United States headquarters. In 2022, Renovite Technologies, Inc. (Renovite), a preeminent provider of cloud-native payments technology, was acquired by J.P. Morgan (NYSE: JPM).
7. Wex Inc.: Established in 1983. United States headquarters. A provider of business payment solutions is WEX Inc. Fleet solutions, Travel & Corporate Solutions, and Health & Employee Benefit Solutions are the three business segments that the company operates. By revenue, the largest division is Fleet Solutions, which offers fleet vehicle payment processing services to businesses and the government.
*Definition: A commercial card is a credit card or virtual card used by businesses to make purchases on behalf of the company.
