Commercial & Enterprise Payments Bulletin - February 2016
Welcome to the February 2016 edition
of the Commercial and Enterprise
Advisory Service Bulletin.
This quarter, the bulletin focuses
on our most recent research, including
the outlook for 2016, commercial cards
in Asia Pacific, along with blockchain
possibilities in corporate banking.
The 2016 Outlook
Over the past years, commercial payments lagged the consumer payments sector in innovations largely because of the complexity of corporate systems and lengthy adoption periods. This reality appears to be changing and in very interesting ways. Investment has significantly increased in innovation focused on the pain points unique to commercial payments. Recent announcements and collaborations may be the spark needed to make 2016 a year of true change.
For the full note, see 2016 Outlook: Commercial and Enterprise Payments.
Blockchain in Corporate Banking
The rush to invest in blockchain technology (BCT) has hit fever pitch, with more banks piling on seemingly every other week. Innovation labs abound and venture capital money flows. To date, almost all blockchain activity has been related to consumer applications. But what about corporate banking? We should start to see some real use cases piloted in 2016.
In a new research note titled, Blockchain in Corporate Banking: What’s Up?, Mercator Advisory Group discusses the exploding investment and targeted resources aligning to investigate the uses of blockchain in corporate banking, heretofore a stepchild to consumer or retail banking application development. Mercator opines about several use cases expected to be piloted during 2016 by at least two of the many collaborative projects launched in 2015.
Commercial Cards in the Asia-Pacific Region
Commercial card growth in the Asia-Pacific region has been robust, primarily associated with travel spend. The diverse region is not necessarily an easy place to do business for financial institutions, but expectations are positive for growth of purchasing cards and virtual cards.
A new research note by Mercator Advisory Group addresses the current state and near-term outlook for mid-to-large market commercial credit cards across the region. The economic growth in Asia-Pacific during the past 10 years, along with associated business travel spend, has driven general regional spend growth to near 20% annual rates during this decade. There remains substantial opportunity for capturing more of the expected increase in travel spend in formal corporate programs using commercial T&E (corporate) cards. Additionally, the expected market for purchasing cards (P-cards) and single-use accounts (also known as virtual cards or payments) in the corporate procurement space will drive ongoing double-digit growth through 2020.
For more details, see the full note at Asia Pacific Commercial Credit Cards: Market Outlook.
During 2016, we will be addressing various topics such as supply chain finance, progress in electronic bank account management (eBAM), and developments in the commercial mobile space.
As always, feel free to reach out to Mercator Advisory Group to talk about anything payments and potential research topics that would be of interest to you and your team.
Thanks, and feel free to send a message any time. My email is firstname.lastname@example.org . You can also call me at (781) 419-1710.
Director, Commercial and Enterprise Payments Advisory Service