Corporate Cards Sourcing and Procurement Intelligence Report 2030

Corporate cards are the game-changer, seamlessly integrating into your ecosystem. Empower employees to make authorized purchases instantly, eliminating bureaucratic headaches and boosting productivity. Enjoy real-time expense tracking, automatic reconciliation, and valuable data insights at your fingertips. Negotiate better supplier deals with bulk purchasing power, and watch your bottom line flourish. Corporate cards – the key to unlocking agility, control, and cost savings in your procurement journey.

Corporate Cards Category Overview

The corporate cards sector anticipates a steady expansion, projecting a compound annual growth rate (CAGR) of 7.3% from 2023 through 2030. Notably, merchants in emerging economies exhibit a notable embrace of corporate cards, largely owing to the convenience facilitated by major network providers such as Visa, MasterCard, and Amex. This heightened acceptance is propelled by the allure of streamlined payment processing and enhanced financial management, aligning with the global shift towards non-cash transactions for improved visibility and operational efficiency. Additionally, the industry's upward trajectory is further buoyed by regulatory advancements aimed at curbing interchange expenses. Within this landscape, the European market commands a substantial share, attributed to escalating business travel expenditures and a burgeoning inclination towards digital payment solutions among enterprises in the region.

Order your copy of the Corporate Cards Procurement Intelligence Report, 2023 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

• This particular sector has experienced significant waves of technological innovation, paving the way for the rapid integration of cutting-edge advancements such as blockchain, artificial intelligence (AI), and fully automated systems. These advancements are reshaping the structural landscape and conventional architectures within the payment realm.
• For example, BitPesa, a startup hailing from Kenya, embraced distributed ledger settlement in 2021, enabling users to conduct low-cost, nearly instantaneous transactions without necessitating a bank account or registered wallet. By harnessing blockchain technology, BitPesa achieved high transaction-per-second throughput and expedited settlement, surpassing the capabilities of conventional card-based systems. The distributed nature of the technology, coupled with consensus-based, real-time transaction verification, significantly bolsters security, rendering fraudulent activities exceedingly challenging.
• In a bid to establish a distinctive biometric signature, Amazon Go introduced a contactless identity service in 2020, integrating consumers' credit cards with palm prints. This innovation allowed customers to effortlessly complete transactions in-store by merely hovering their palm over an Amazon One device.

When IoT technologies and blockchain are combined, they will serve as decentralized credit card processing platforms. This combination has reduced the value of plastic cards, which encouraged the use of customer's digital IDs being a crucial part of payment execution.

Corporate Cards Procurement Intelligence Report Scope

The Corporate Cards category is expected to have pricing growth outlook of 4% - 7% (Annually) from 2023 to 2030, with below pricing models.

• Tiered and flat rate pricing models

Supplier Selection Scope of Report

• Cost and pricing
• Past engagements
• Productivity
• Geographical presence

Supplier Selection Criteria of Report

• By corporate card type (Standard corporate card, Virtual card, Purchasing card)
• Loyalty and reward (cashback, reward points, lounge access)
• Credit limits
• Credit score requirements
• technical specifications
• Operational capabilities
• Regulatory standards
• mandates
• Category innovations
• others

Corporate Cards Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2023 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Corporate Cards Procurement Cost and Supplier Intelligence

Charges associated with this category are payment-processing fees, assessment fees, and interchange fees. Payment processing fees are the costs imposed on merchants for handling client credit cards and online payments. The preferred pricing model of the payment processor as well as the transaction’s level of risk determine the amount of payment processing fees. Assessment fees are frequently calculated as a percentage of the overall volume of transactions in a specified period. Interchange fees depend on the type of credit or debit card used, the card brand, the areas or jurisdictions, and the transaction type (online, in-person, etc.). The interchange fee assists in reducing the risk of fraud and handling expenses for the card issuer. For instance, a consumer makes a USD 100 purchase with a credit card. For that USD 100 item, the merchant would get approximately USD 97.81. The remaining USD 2.19 is divided up in the following way: USD 1.75 goes to the issuing bank (defined as an interchange fee), USD 0.14 goes to the card network processor (defined as an assessments fee), and USD 0.30 goes to a payment processor (defined as payment processing fee).

Other charges involved are acquirer processing fee (APF), fixed acquirer network fee (FANF), kilobyte access (KB) fee, network access and brand usage (NABU) fee, and negotiable fees (which consist of account fees, address verification system (AVS) fee, batch fee, chargeback fee, contract cancellation fee, hosting fee, IRS (internal revenue service) reporting fee, marked-up discount rate, minimum monthly processing fee, monthly fee, payment gateway fee, PCI (payment card industry) compliance fee, service fee, terminal lease fee, and wireless access fee). The threat of substitutes is expected to be medium in this category. There is less scope for new entrants to bring down the industry's dominant player and compete with the incumbents due to high capital and regulatory requirements, historic market dominance by huge enterprises, and major players who have a large customer base in the market. The major regions of North America and Europe such as the U.S., Canada, the U.K., Ireland, France, Germany, Spain, Italy, and Switzerland are the preferred business destinations to attract customers in this category. The use of card and card program maturity are high in these regions.

A well-planned and effective negotiation strategy will be beneficial to provide businesses with better credit card fees and rates. One of the important negotiation strategies is to negotiate card-processing fees. It is crucial to understand the key players involved in finalizing processing fee rates. The banks, the credit card network, and the payment processor negotiate with each other to offset risks and split costs. The business and the customer have little say in credit card processing fees. Customers and businesses have limited control over credit card processing costs. However, before signing a contract and implementing a processing system, firms might try to negotiate and reduce the processing prices. Firms should request rates and fees that are less expensive than the ones businesses already pay. In fact, businesses need to make continuous requests for cheaper rates from the processing firm, bank, and any cloud software that is being used for online sales.

List of Key Suppliers

• American Express
• Citi
• HSBC
• AirPlus
• Bank of America
• Chase Commercial Banking
• P. Morgan
• Barclays
• Mastercard
• Wells Fargo

Browse through Grand View Research’s collection of procurement intelligence studies:

Nylon Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Mannequins Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions