Today’s commercial cards landscape
In theory, commercial cards are convenient for relatively low value and adhoc purchases, and should be attractive for buyers. In reality, commercial cards have a relatively low share of commercial spend compared with other payment methods — accounting for less than 1% of global commercial payments by value, and 8% by volume.
For traditional card providers, performance and prospects are patchy. They face threats from emerging financial technology companies, who use agile business models to capture market share. Trying to beat the competition is often self defeating: ever-increasing rebate offers that create a spiral of ever-lower profits. There is also potential bad news around the corner, as more and more regulators lower the commercial interchange rate