Commercial Payment Cards: The U.s. And Global Markets And Trends, 6th Edition-aarkstore Enterprise

The commercial payment card market has undergone a transformation in recent years

as the associations and issuers strive to convince companies of the various benefits. Once a fairly simple market comprising travel and entertainment cards and fuel cards, the commercial payment card universe has become more complex with increased segmentation and functionality. But the lines between products have also blurred resulting in card products that combine several cards into one. Purchasing cards have emerged as the champion of commercial payments with the expectation of eventually replacing a substantial portion of paper-based procurement. The fact that commercial cards capture a mere fraction of total commercial payments highlights the potential of the opportunity at hand.

The financial crisis of 2008 that led to the economic meltdown in 2009 posed both a hurdle and an opportunity for the commercial payment card market. On the one hand, products such as small business cards suffered massive declines in purchase volume and skyrocketing charge-off rates. On the other hand, the consolidation of several major issuers and the weeding out of weaker players, combined with a new drive toward corporate cost control and efficiency, may have set the stage for a quick recovery in 2010.

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by: Aarkstore Enterprise

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