Fuel Cards in Europe, Southern Markets 2017: Market and competitor data and insights into the commercial fuel card sector
The heightened competition in Southern Europe will increase demand for fuel cards towards 2022.In spite of this, many fleets will not use fuel cards due to the limited acceptance networks offered by card operators. On an average, only 79.3% of service stations on average accept commercial fuel cards as a payment option in Southern Europe, which significantly reduces card appeal to fleet vehicles. Due to their varied transport routes, fleet vehicles need a card acceptance network which covers both rural and urban locations, making a large card acceptance network essential for fleets when selecting a fuel card operator. With the average fuel card operator in Southern Europe having a card acceptance network which covers less than 15% of domestic service stations, many fleets do not view fuel cards as a viable payment option.
While the majority of fuel card volumes in Southern Europe are sold to CRT vehicles, with over seven million fleet vehicles not using fuel cards in 2022, fleets present card operators with significant growth opportunities over the next five years. Due to poor economic conditions in many Southern European countries, especially Greece and Portugal, many card operators have been reluctant to offer fuel cards to small domestic fleets in fear that they will close.
As a result of this, many card operators have set high minimum volume requirements for fleets to reduce their risk, while also making the majority of fleet vehicles in Southern Europe ineligible for fuel cards. Card operators should launch new fleet cards with lower minimum volume requirements and discounted fuel prices, while limiting credit periods to reduce risk, as this will significantly increase appeal to fleets and create more than seven million new potential clients towards 2022.
Over the next five years Southern European commercial transport companies will expand into foreign markets, increasing demand for international fuel card services. Due to heightened competition levels in Southern European countries, transport companies will look to foreign markets for new business towards 2022. In order to meet the changing needs of clients, card operators should create partnerships with fuel retailers across Europe in order to expand their international card acceptance networks. In additional operators should invest in card services such as VAT reclaim, toll payments, international breakdown cover, fraud prevention and online monitoring which will help clients reduce transport costs and allow them to operate in foreign markets.
The report Fuel Cards in Europe, Southern Markets 2017, is invaluable for issuers of fleet cards, fuel retailers, fleet leasing companies and other suppliers to the sector. Based on research with issuers and fuel retailers it provides commercial (B2B) fuel card volume (split by fleet and CRT), value and market share forecasts to 2022, key data on independent and oil company card issuers and an analysis of fuel card competition in Southern Europe.
Companies mentioned in this report: Shell, BP, Esso, DKV, UTA, TOTAL, Q8, Eni, ROUTEX, AS24, Cepsa, Repsol, Galp, OMV, Circle K,OKQ8, St1, Teboil, Neste, Eko-Elda, Avin, Jetoil