Mercator Blog

Commercial and Enterprise Payments Advisory Service Newsletter - May 2016
Date: May 5, 2016
Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service

 

Hello, and welcome to the May 2016 edition of the Commercial and Enterprise Payments Advisory Service newsletter. 

This quarter, the newsletter focuses on our most recent research, including the outlook for commercial cards in Europe, along with a detailed update on the U.S. Federal Reserve's Faster Payments initiative as it relates to corporate payments.

 

The 2016 Outlook

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

Commercial Cards in Europe

Commercial Cards in Europe

Commercial credit cards include corporate cards, purchasing cards, lodged cards, and recently virtual cards (also known as single-use account, or SUA). Europe has not been a wholesale adopter of the commercial cards model, but expectations for growth of virtual payments are positive, especially in mid-to-large markets. However, new European Union interchange regulations have introduced market noise that bears watching.

We review the status of European mid-to-large market commercial credit cards. While regional spending volumes have historically been driven by business travel, Mercator Advisory Group sees growth in procurement-related spend finally taking off by virtue of single-use accounts.

See more at: Commercial Cards in Europe: Stagnating or Growing?

Faster Payments

Faster Payments

A bit more than a year has passed since the Federal Reserve published a faster payments strategy paper, and much preliminary work has taken place. The methodical approach to understanding and creating a faster and safer payments ecosystem belies the speed with which we may expect change to be executed in modern tech times. This deliberate approach may pay off in the long term, but in the meantime, innovation continues.

To review the entire Viewpoint, see more at: Update on Faster Corporate Payments

Coming Research

During the remainder 2016, we will be addressing various topics such as supply chain finance, e-payables, eBAM progress 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 smurphy@mercatoradvisorygroup.com. You can also call me at (781) 419-1710.

Regards,

Steve

Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service