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.
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.
In a new research note, Commercial Cards in Europe: Stagnating or Growing? Mercator Advisory Group reviews the status of European mid-to-large market commercial credit cards. Whilst regional spending volumes have historically been driven by business travel, Mercator sees growth in procurement-related spend finally taking off by virtue of single-use accounts.
Highlights of the research note include:
A review of the European Union new Interchange Fee Reform regulations enacted in December 2015 by the European Parliament and Council of the European Union in Regulation (EU) 2015/751 IFR, which is a part of Payment Services Directive 2 (PSD2).
Estimates of growth of commercial credit card spend by product type through 2020
Mercator’s analysis of potential impacts of E.U. IFR on commercial credit cards by product/scheme
Discussion of the virtual account opportunity in business-to-business, or B2B, payments
Companies mentioned in this research note include Airplus International, American Express, Conferma, Diners Club, Ixaris, JCB, MasterCard, UnionPay, and Visa.
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