Opportunity Forecast for Commercial Cards in Major Markets Around the Globe
The major regional commercial credit card markets outside of North America continue to grow, the pace varying by location and product.
The continued movement toward electronic payments represents ongoing opportunity for card schemes. One report predicts an almost 11% growth in worldwide noncash transactions from 2015 to 2020, which translates to multitrillions of dollars. Companies across the globe seek more efficiencies and value from business-to-business (B2B) payments, and card schemes can help to provide that through credit facilities, potential revenue share, and “risk-minimized” virtual card accounts.
While economic activity is expected to continue at a tepid pace in the euro area, there is renewed growth in LAC and continued robust gains in the gross domestic product of countries across the Asia-Pacific region. Business growth also helps to fuel the business travel market, where companies seek process control, analytical data access, spending discipline, and easier staff experiences, all of which can be provided through corporate card programs. Headwinds in the form of regulations remain as well as longer-term potential threats from new payment schemes, but the general outlook for commercial cards is strong through the end of the decade.
In the research report, International Commercial Card Markets Outlook: 2016–2021, we present a summary of each indicated market, along with predictions of spending volumes through 2021.