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Commercial Payment Cards: U.S. and Global Market Trends, 8th Edition


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Commercial Payment Cards: The U.S. and Global Markets and Trends, 8th Edition

One of the bright spots in 2014 for the payments industry was the strength of commercial payment cards. While consumer credit spending was hampered, commercial card purchase volume progressed at a healthy pace, Packaged Facts has found. According to our new report, Commercial Payment Cards: The U.S. and Global Markets and Trends, commercial card purchase volume reached $888 billion in 2013 on growth of 13%. But commercial cards are catching on in both the U.S. and abroad: we forecast global commercial card purchase volume to grow by 13% in 2014 and in 2015, rising from $1.4 trillion to $1.79 trillion, with both small businesses and larger corporations fueling growth.

The global landscape is quickly shifting, due in part to the quick ascension of UnionPay, which now generates more commercial card purchase volume than JCB, BC Card and Discover/Diner’s Club and surpassed Visa in 2013 as the largest network by credit and debit purchase volume. With globalization occurring at a rapid pace, payments networks and financial institutions keen to meet the needs of multinational corporations and penetrate new market are growing alongside the world’s large corporations.

And U.S. commercial banks have worked hard to close the commercial payments gap with competitors such as American Express. Long the “Apple” of corporate payments, American Express is a one-stop provider of financial instruments (cards, service and solutions, and a network all under one roof). Commercial banks in the U.S. may be taking competition up a notch, using a combination of in-house and external resources, such as Visa and/or MasterCard solution and tapping their unsurpassed global location reach.

Cost savings drives migration to commercial cards. However, the industry is approaching that impetus with increasingly sophisticated solutions: With names like IntelliLink (Visa), SmartData (MasterCard), PAYVE (American Express) and Paymode-X (Bank of America), the industry has introduced some very enticing value propositions to their corporate clients, allowing them to leverage information, create process synergies, and control costs better than ever before. Gaining traction in the marketplace, these kinds of platforms are the real growth drivers behind the cards, and some no longer rely on physical cards at all.

Scope

This Packaged Facts report presents data and analysis on the global and U.S. market for commercial payment cards and the U.S. market for commercial electronic payments. Commercial Payment Cards: The U.S. and Global Markets and Trends, 8th Edition presents the size and growth of the market and related key metrics within the broader payment card arena. Included are discussions and analysis of the various card associations or networks, commercial payment card types, trends and factors affecting their growth, and a focused analysis of commercial card consumer demographics and preferences. In addition, major card brands and issuers are profiled with recent activity.

In particular, this report:

  • Provides a commercial card market size and forecast through 2015, with supporting analysis of global, U.S. and no-U.S. consumer and commercial purchase volume growth during 2010-2013. This includes volume share among the leading global networks: American Express; BC Card; Diner's Club; Discover; JCB; MasterCard; UnionPay and Visa. In the United States, we also distinguish between credit/charge volume and debit/prepaid volume by major network for 2013.
  • Analyzes American Express, Discover/Diner’s Club, MasterCard and Visa commercial card operations, including growth strategies, card programs, electronic solution evolution, and U.S. and non-U.S. trends. We also provide 2010-2013 trending of American Express, MasterCard and Visa global, U.S. and non-U.S. commercial and consumer purchase volume. In addition, we provide small business volume estimates for these three networks, and (for Visa and MasterCard), the percentage of U.S. commercial spend attributable to credit cards and debit/prepaid cards.
  • Assesses the commercial card strategies of major U.S. commercial bank players, including Bank of America, Citibank, JPMorgan Chase and U.S. Bank, as well as commercial card processing giant Total System Services.
  • Analyzes the closed-loop commercial fleet card market and the closed loop airline/travel market, focusing on the strategies being employed by industry players such as Comdata Inc., FleetCor Technologies, Inc., MasterCard, U.S. Bank Voyager Fleet Systems Inc., WEX Inc., Universal Air Travel Plan, Inc. and AirPlus International.
  • Analyzes the U.S. government’s contribution to commercial card growth, focusing on growth trends in its SmartPay charge card program. Spend and transactions are trends by contract holder (Citibank, JPMorgan Chase and U.S. Bank) as well as by purchase, fleet and travel spending categories.
  • Addresses trends shaping the commercial card industry, including globalization trends, analysis of UnionPay and JCB; data-driven analysis of purchase card usage and spending; and location acceptance issues.


  • Executive Summary
    • Report Scope
      • Scope
    • Report Summary
      • Market size and forecast
      • Some global context
      • In the U.S
      • And outside of the U.S.
      • Commercial card growth drivers & trends
      • Global competition increases
      • Commercial cards making inroads
      • And purchase cards generate lots of spend
      • But not used prevalently
      • Make it easy
      • Accept me!
      • Commercial card network operators
      • American Express
      • Discover/Diner's Club
      • MasterCard
      • Visa
      • American Express, MasterCard and Visa commercial card value growth trends
      • Credit card/business credit card penetration by company size
      • Commercial card bank issuers and processors
      • Abroad, ho!
      • A growing plethora of electronic solutions
      • Moving into new verticals
      • A bit about the players
      • Commercial card non-bank issuers and processors
      • Closed-loop fleet cards
      • Comdata Inc.
      • Fleetcor Technologies, Inc.
      • Airline/travel
      • Commercial cards and government
  • Introduction and Overview
    • Introduction to commercial payment market product categories and segments
      • Open-loop versus closed loop cards
      • Products and services out of scope
  • Market Size and Forecast
    • Summary analysis
      • Overall card purchase volume
      • Commercial card purchase volume
    • Commercial card purchase volume market size & forecast
      • Table Global Payment Card & Commercial Card Purchase Value: 2010-2015
      • Debit cards and prepaid cards
        • Table U.S. Commercial Card Purchase Volume: Total, Credit/Charge & Debit/Prepaid, by Network Operator, 2013
      • Closed loop fleet cards
    • Global card purchase volume trends
      • Global card purchase volume grows 72% during 2010-2013
      • UnionPay takes global lead
        • Table Global Card Purchase Value/Value Share, by Network Operator: 2010-13
    • Global commercial card purchase volume trends
      • Commercial card share
        • Table Global Commercial Card Purchase Value & Share of Global Card Purchase Value, 2010-13
      • Visa, American Express and MasterCard maintain volume leadership
        • Table Global Commercial Card Purchase Value/Value Share, by Network Operator: 2010-13
    • U.S. card purchase volume trends
      • Table U.S. Card Purchase Value & Global Market Share, 2010-13
      • Table Commercial Card Purchase Value: Global, U.S. &Non-U.S., 2010-13
      • Visa maintains lead
        • Table U.S. Card Purchase Value/Value Share, by Network Operator: 2010-13
        • Table U.S. Commercial Card Purchase Value/Value Share, by Network Operator: 2010-13
    • Non-U.S. card purchase volume trends
      • Table Non-U.S. Card Purchase Value/Value Share, by Network Operator: 2010-13
    • Non-U.S. commercial card purchase volume trends
      • Table Non-U.S. Commercial Card Purchase Value/Value Share, by Network Operator: 2010-13
  • Commercial Card Growth Drivers & Trends
    • Summary analysis
    • Going global, global, global
    • Europe
    • And facing global competition
      • UnionPay
      • Mirroring Chinese market growth
      • And maintaining domestic market dominance
      • While expanding abroad
      • By the numbers
        • Table UnionPay Global Consumer and Commercial Card Purchase Volume, 2009-2013
    • JCB
      • Table JCB Global Consumer and Commercial Card Dollar Volume, 2009-2013
    • Driving commercial card uptake
      • Cost savings
      • Cards still a sliver of the payments pie
        • Table Percent of Payments Made by Corporations, 2013
      • Purchasing cards
      • Non-plastic purchasing card accounts
      • Middle market provides purchasing card opportunity
        • Table Usage of Payment Types by Corporations, by Corporation Revenue, 2013
      • Purchasing card use is relatively widespread
      • But not used with much frequency
        • Table Payment Method Used to Pay Major Suppliers, by Transaction Share, 2013
      • Convenience and ease
    • Accept me!
    • Drilling into new spend categories
    • Adapting to and harnessing technology
      • RFID on the horizon
  • Commercial Card Network Operators
    • Summary analysis
      • American Express
      • Discover/Diner's Club
      • MasterCard
      • Visa
      • Comparing cards
    • American Express
      • Value proposition
      • Special services and programs abound
      • Commercial card operating segments and customer bases
      • Charge!
      • International proprietary small business
      • Commercial growth via network partnerships
      • Global Commercial Services
      • Corporate card programs
      • Online management tools
      • Savings at Work
      • Membership Rewards
      • Business-to-business payment solutions
      • Corporate Purchasing Card
      • vPayment
      • PAYVE and buyer initiated payments
      • American Express Global Business Travel
      • Commercial card performance and growth trends
      • B2B emphasis
      • Small business growth continues
      • While corporate growth slows
      • GNS partnerships flourish
      • Targeting educational institutions
      • Technology partnerships and acquisitions
      • International expansion
      • American Express consumer and commercial card value growth trends
        • Table American Express Global Consumer & Commercial Card Value: 2010-2013
      • Non-U.S. trends
        • Table American Express Non-U.S. Consumer & Commercial Card Value: 2010-2013
      • U.S. trends
        • Table American Express U.S. Consumer & Commercial Card Value: 2010-2013
      • U.S. commercial trends, by business type
        • Table American Express U.S. Commercial Card Value, by Business Type: 2010-2013
    • Discover Financial Services, Inc.
      • Diner's Club provides international reach
    • MasterCard
      • Commercial payment solutions
      • Commercial card strategy
      • Direct-to-corporate sales strategy
      • Unleashing MasterCard Smart Data
      • Tapping MasterCard Advisors
      • The art and timing of the cross-sell
      • Small business strategy
      • An integrated approach
      • MasterCard Business Network: negotiating strength for small business
      • MasterCard consumer and commercial card value growth trends
        • Table MasterCard Global Consumer & Commercial Purchase Volume: 2010-2013
      • Non-U.S. trends
      • Chipping away at China
      • Elsewhere abroad
        • Table MasterCard Non-U.S. Consumer & Commercial Card Purchase Volume: 2010-2013
      • U.S. trends
      • Consumer credit emerging from doldrums
      • Other commercial contract wins
        • Table MasterCard U.S. Consumer & Commercial Card Purchase Volume: 2010-2013
      • Commercial credit card versus commercial debit/prepaid
        • Table MasterCard U.S. Consumer & Commercial Card Purchase Volume: Credit vs. Debit, 2010-2013
    • Visa
      • Commercial payment solutions
      • Small business
      • Credit card issuer signings strengthen Visa's U.S. consumer credit card position
      • Medium-sized and large businesses
      • Scratching the surface: the cards
      • Beneath the surface: harnessing data, simplifying the process and growing payment spend
      • PerformSource
      • Visa Payables Automation
      • The CyberSource connection
      • Syncada
      • Industry vertical solutions
      • Visa consumer and commercial card value growth trends
        • Table Visa Global Consumer & Commercial Card Value, 2010-2013
      • Non-U.S. trends
        • Table Visa Non-U.S. Consumer & Commercial Card Value, 2010-2013
      • U.S. trends
        • Table Visa U.S. Consumer & Commercial Card Value, 2010-2013
      • Commercial credit card versus commercial debit/prepaid
        • Table Visa U.S. Consumer & Commercial Card Value: Credit vs. Debit, 2010-2013
    • Credit card/business credit card penetration by company size
      • Visa, MasterCard & American Express
        • Table Consumer & Business Credit Card Usage Penetration, 2013
  • Commercial Card Bank Issuers & Processors
    • Summary analysis
    • Bank of America Merrill Lynch
      • U.S. presence
      • International scope
      • Commercial card solutions
        • Table Bank of America Merrill Lynch Card Solutions, 2013
      • Comprehensive Payables
      • Paymode-X and ePayables
      • Works
      • Enhancements and expansion
    • Citibank/ Citi Commercial Cards
      • Expansion and enhancements
      • Product rollouts
      • International growth
      • Well positioned in China
      • Latin America gets global issuing platform
    • JP Morgan Chase/Chase Commercial Banking
      • Products & Capabilities
      • Electronic solutions
      • New partnerships
    • Total System Services, Inc.
      • Commercial card scope and growth
        • Table Total System Services: Consumer, Commercial, Government & Prepaid Accounts, 2011-2013
    • U.S. Bank
      • Commercial card solutions
      • Electronic solutions
      • Healthcare
      • Fuel solutions
  • Commercial Card Non-Bank Issuers
    • Summary analysis
    • Fleet cards
      • Market size
      • Expansion and enhancements
      • Fleetcor Technologies, Inc.
        • Table FleetCor U.S. &International Networks and Network Locations, 2013
      • Acquisitions build volume and strengthen product portfolio
      • WEX Inc.
      • Fleet cards
      • Virtual and prepaid cards
      • Acquisitions
    • Airline/travel
      • Universal Air Travel Plan
      • AirPlus International
  • Commercial Cards and Government
    • Summary analysis
    • Thank you, Uncle Sam!
    • SmartPay
      • GSA charge card issuers: Citibank, JPMorgan Chase, and U.S. Bank
      • SmartPay spend on decline
        • Table GSA SmartPay Program Spend and Transaction Volume: Fleet, Purchase, Travel, 2009-2013
      • U.S. Bank contract generates 60% of SmartPay fleet volume
        • Table GSA SmartPay Fleet Card Spend and Transaction Volume: Citibank, JPMorgan Chase and U.S. Bank, 2009-2013
      • U.S. Bank cards generate 60% of SmartPay fleet volume
        • Table GSA SmartPay Purchase Card Spend and Transaction Volume: Citibank, JPMorgan Chase and U.S. Bank, 2009-2013
      • Citibank contract generates three-quarters of travel volume spend
        • Table GSA SmartPay Travel Card Spend and Transaction Volume: Citibank, JPMorgan Chase and U.S. Bank, 2009-2013
        • Table GSA SmartPay Spend and Transaction Volume: Department of Interior, 2009-2013
  • Appendix
    • Methodology
      • Consumer survey methodology
    • Market size methodology
      • Volume estimates
      • End users included
      • Volume not included
      • Other
      • Sources
    • Abbreviations

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