Overview:

Countries covered: Global

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.

This Packaged Facts report, which has been renamed from corporate credit cards, presents data and analysis on the global and U.S. market for commercial payment cards. The report presents the size and growth of the market by examining key metrics for the 2005-2009 period and providing forecasts through 2014. Included are discussions and analysis of the various commercial payment card types, trends and factors affecting their growth, and a focused analysis of commercial card end user demographics and preferences. In addition, major card brands and issuers are profiled to provide a competitive landscape.

Methodology

Packaged Facts’ study of commercial payment cards is based on extensive secondary research and interviews with industry and regional experts. Secondary sources include data-gathered from relevant trade, business, and government sources, including card industry journals, trade and general press (print and electronic), annual reports and 10(k) filings, company literature, consultancy publications, Packaged Facts reports, websites and white papers.

Packaged Facts’ analysis of consumer behavior and demographics derives from the spring 2009 Experian Simmons Market Research Bureau’s (New York, NY) adult consumer surveys, which are based on approximately 25,000 respondents age 18 or over.

What You’ll Get in this Report

Commercial Payment Cards makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Commercial Payment Cards offers.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report

If your company is already doing business in the commercial payment card market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for commercial payment cards, as well as projected markets and trends through 2014.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for commercial payment cards.

• Research and development professionals stay on top of competitor initiatives and explore demand for commercial payment cards.

• Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel businesses to use commercial payment cards.

• Business development executives understand the dynamics of the market and identify possible partnerships.

• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary

Scope

Commercial Payment Card Categories

Products Out of Scope

Methodology

Global Payment Card Market Tops $1.0 Trillion

Figure 1-1: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $)

Small Business Cards Lead Decline

Table 1-1: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $)

U.S. Market Accounts for Bulk of Global Purchase Volume

Table 1-2: U.S. Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Commercial Card Market to Grow in 2010

Figure 1-2: Global Commercial Payment Card Purchase Volume Forecast, 2009-2014 (in billions $)

Purchasing, Fleet to Add Most Purchase Volume

Table 1-3: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $)

U.S. Market Forecast

Table 1-4: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $)

Visa Leading U.S. Commercial Card Brand

Figure 1-3: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)

GDP Growth Stalls in 2009, to Rebound in 2010

Emerging Economies May Be Greatest Prospect for Commercial Cards

Charge-off Rates, Unemployment Go Sky High

Rising Delinquencies, Charge-offs, Unemployment to Continue Higher

“Real” Unemployment Rising, a Sign of Further Trouble Ahead

Total Firms Contract to 29 Million

Table 1-5: Total Number of U.S. Firms and Total Employment for Employer Firms and Non-Employers/Self-Employed, 2005-2009 (in millions)

Business Bankruptcies Skyrocket

Commercial Generated Revenues Down Dramatically in 2009, to Rebound in 2010

Figure 1-4: U.S. Commercial Generated Revenues and Percent of Total U.S. Firm Revenues, 2005-2014 (in trillions $)

Visa’s Commercial Consumption Measure

Commercial Card Trends in a Down Economy

Commercial Cards as Cost Reduction Tools

Commercial Cards Ready to Horn in on Paper and EFTs

Sagging Economy May Spur Adoption of Cards and Systems

Satisfaction is High

Managing Risk Through Analytics

Payment Fraud Up in 2008

Innovative Commercial Payment Options Reshape Market

Efficiency, Security and Control Price of Entry

Outsourcing Make Entry Easier

Global Marketing Spend of Major Brands Declining

Figure 1-5: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $)

Business Card End-User Demographics

15 Million Business Card Users

Table 1-6: Usage Rates for Selected Credit Card Classifications: Have or Use, Used 12 Months, and Used in last 30 Days, 2009 (% U.S. adults)

Baby Boomers are Top Card Users

Part-time Workers Less Likely, Self-Employed More Likely

Professional/Scientific/Technological Employees More Likely to Be Card Users

Business Purchasing Involvement: Dramatically High Across Brands

 

 

Chapter 2: The Market

Scope

Commercial Payment Card Categories

Products Out of Scope

Methodology

The Global Payment Card Market Overview

Rapid Expansion of the Global Payment Card Market

Global Payment Card Purchase Volume Declines in 2009

Figure 2-1: Global Payment Card Purchase Volume, 2005-2009 (in billions $)

Payment Cards Continue to Replace Other Forms of Payment

Table 2-1: Global Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

 

The Global Commercial Payment Card Market

Global Payment Card Market Tops $1.0 Trillion

Commercial Market in 2009 Plummets

Figure 2-2: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $)

Table 2-2: Global Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Global Market by Brand

Visa, Inc. Leads Global Market

Visa Europe Declines More Shallow

America Express No Longer on Top

MasterCard Growth Suffers From Advanta Collapse, Small Business

China UnionPay the One to Watch

Other Commercial Payment Brands Find Strength in Home Markets

Table 2-3: Annual Global Commercial Payment Card Purchase Volume by Brand, 2005-2009 (in billions $)

Global Brand Share Shifts in Visa’s Favor

Figure 2-3: Share of Global Commercial Payment Card Volume by Brand, 2009 (%)

Global Market by Category

Innovation into Category Extinction

Corporate Cards’ Steady Growth Falters

Small Business Cards Suffer Largest 2009 Decline

Purchasing & Fleet Cards Suffer from Lower Gas Prices

Prepaid & Benefit Cards Keep Growing

Table 2-4: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $)

Global Share by Category

Figure 2-4: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)

 

The U.S. Commercial Payment Card Market

U.S. Market Accounts for Bulk of Global Purchase Volume

U.S. Payment Card Purchase Volume Declines in 2009

Figure 2-5: U.S. Commercial Payment Card Purchase Volume and Percentage of Total Global Commercial Card Payment Volume, 2005-2009 (in billions $)

Table 2-5: U.S. Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

U.S. Market by Major Brand

Visa in U.S. Grabs Largest Share

American Express’s U.S. Business Suffers

MasterCard’s Robust U.S. Growth Does an About-Face

Discover Only a Minor Player

Table 2-6: Annual U.S. Commercial Payment Card Purchase Volume by Major Brand, 2005-2009 (in billions $)

 

Market Forecast

It Wasn’t a Very Good Year

Hope for a Rebound in 2010

Commercial Card Market to Grow in 2010

Figure 2-6: Global Commercial Payment Card Purchase Volume Forecast, 2009-2014 (in billions $)

Through 2014 Growth to Grow Purchase Volume by 50%

Table 2-7: Global Commercial Payment Card Purchase Volume and Year-over-Year Percentage Change, 2009-2014 (in billions $)

Global Market Forecast by Brand

China UnionPay Becomes a Player

Table 2-8: Global Annual Commercial Payment Card Purchase Volume Forecast by Brand, 2009-2014 (in billions $)

Global Market Forecast by Category

Purchasing, Fleet to Add Most Purchase Volume

Corporate Cards to Grow at Slower Pace

Prepaid, Benefit Card Volume Growth the Most Robust

Small Business Volume Growth May be Hampered

Table 2-9: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $)

U.S. Market Forecast

Figure 2-7: U.S. Commercial Payment Card Purchase Volume Forecast and Percentage of Total Global Commercial Card Payment Volume, 2009-2014 (in billions $)

Table 2-10: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $)

 

 

Chapter 3: Competitor Landscape

Overview

Visa Leading U.S. Commercial Card Brand

MasterCard a Close Third

Figure 3-1: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)

JCB and China UnionPay Notable in Global Market

 

Profile: Visa, Inc

Table 3-1: Visa, Inc. Key Performance Metrics, 2005-2009

Visa, Inc. Global Commercial Volume

Figure 3-2: Visa, Inc. Total Global Commercial Volume and Percent of Visa, Inc. Total Global Volume, 2005-2009 (in billions $)

Table 3-2: Visa, Inc. Total Global Commercial Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

Visa, Inc. Global Small Business Volume

Figure 3-3: Visa, Inc. Total Small Business Volume and Percent of Visa, Inc. Global Commercial Volume, 2005-2009 (in billions $)

Table 3-3: Visa, Inc. Total Small Business Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

 

Profile: MasterCard Worldwide

Table 3-4: MasterCard Worldwide Key Performance Metrics, 2005-2009

MasterCard Worldwide Global Commercial Volume

Figure 3-4: MasterCard Worldwide Total Global Commercial Volume and Percent of MasterCard Worldwide Total Global Volume, 2005-2009 (in billions $)

Table 3-5: MasterCard Worldwide Total Global Commercial Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

MasterCard Worldwide Global Small Business Volume

Figure 3-5: MasterCard Worldwide Total Small Business Volume and Percent of MasterCard Worldwide Global Commercial Volume, 2005-2009 (in billions $)

Table 3-6: MasterCard Worldwide Total Small Business Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

 

Profile: American Express Company

Table 3-7: American Express Company Key Performance Metrics, 2005-2009

American Express Company Global Commercial Volume

Figure 3-6: American Express Company Total Global Commercial Volume and Percent of American Express Company Total Global Volume, 2005-2009 (in billions $)

Table 3-8: American Express Company Total Global Commercial Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

American Express Company Global Small Business Volume

Figure 3-7: American Express Company Total Small Business Volume and Percent of American Express Company Global Commercial Volume, 2005-2009 (in billions $)

Table 3-9: American Express Company Total Small Business Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)

 

The Issuer Landscape

American Express, Issuer and Card Brand, on Top

JPMorgan Chase Vaults to Number Two

Wells Fargo Poised for Major Growth

Profile: JPMorgan Chase

JPMorgan Chase Commercial Card Growth Robust

Product Offerings

Table 3-10: JPMorgan Chase Commercial Card Product Portfolio, 2009

Chase Targets Small Business with Ink

Competing with American Express a Major Strategy

Chase Blueprint to Help Manage Paying Balances

Profile: U.S. Bancorp

Table 3-11: U.S. Bancorp Commercial Card Product Portfolio, 2009

Cash Rewards Small Business Card to Attract New Banking Customers

U.S. Bank Pilots Multi-Function Card

2008 Hot for Purchasing, Fleet Cards

Purchasing, Fleet Take a Breather in 2009

Table 3-12: U.S. Bancorp Key Performance Metrics, 2005-2009

Biodegradable PVC Fleet Cards for Voyager Customers

SmartPay Program Big Business for U.S. Bank

Profile: Advanta

Figure 3-8: Advanta Corp. Total Card Volume and Number of Accounts at End of Period, 2005-2009 (in millions $)

Figure 3-9: Advanta Corp. Total Credit Card Charge-Offs and Charge-Off Rates, Owned and Managed Basis, 2005-2009 (in millions $)

Q1 2009 Sees the Beginning of the End

Advanta Exits Credit Card Business

Advanta Problems Indicative of Larger Problem

A Look at Closed Loop Fleet Networks

Fleetcor Becomes a Player

Comdata Clinging to Number One

Wright Express Cannibalizing Business

Voyager, T-Chek Bring Up the Rear

Figure 3-10: Share U.S. Closed Loop Network Fleet Card Volume, 2009 (%)

Profile: Wright Express

Table 3-13: Wright Express Commercial Card Product Portfolio, 2009

2008 a Boon Year for Wright Express

Table 3-14: Wright Express Key Performance Metrics, 2005-2009

Lower Gas Prices & Fewer Transactions Lower Revenue in 2009

Wright Express Gets Federal Government Business

 

 

Chapter 4: Global and U.S. Economic Environment

Global GDP Growth

Figure 4-1: Global GDP for the United States, Ex-U.S. G7 Countries, and Emerging and Developing Economies, 2005-2014 (in billions current $)

Growth Stalls in 2009

GDP Growth for 2010 and Beyond

Emerging Economies May Be Greatest Prospect for Commercial Cards

Figure 4-2: Share of Global GDP for the United States, Ex-U.S. G7 Countries, and Emerging and Developing Economies, 2005-2014 (percent)

U.S. Unemployment and Credit Card Defaults

Delinquency Rate a Leading Indicator?

Delinquency Rate Volatility May Signal Change in Direction for Charge-offs, Unemployment

Useful for Small Business Card Issuers

Charge-off Rates, Unemployment Go Sky High

Figure 4-3: Seasonally Adjusted Quarterly Credit Card Charge-off and Delinquency Rates versus Unemployment, Alternative Measures of Unemployment Rates and Spread, 1994Q1-2009Q3 (percent)

Rising Delinquencies, Charge-offs, Unemployment to Continue Higher

“Real” Unemployment Much Higher

Spread Expands Dramatically

Figure 4-4: Seasonally Adjusted Quarterly Credit Card Charge-off and Delinquency Rates versus Unemployment, Alternative Measures of Unemployment Rates and Spread, 1994Q1-2009Q3 (percent)

A Sign of Further Trouble Ahead

U.S. Business Landscape as Bellwether

Total Firms Contract to 29 Million

Table 4-1: Total Number of U.S. Firms and Total Employment for Employer Firms and Non-Employers/Self-Employed, 2005-2009 (in millions)

Business Bankruptcies Skyrocket

Most Business Bankruptcies Lead to Liquidation

Figure 4-5: Quarterly Business Bankruptcy Filings, 1994-2009 (number)

Employment Drops 5%

Table 4-2: Percentage Change in U.S. Firms and Total Employment for Employer Firms and Non-Employers/Self-Employed, 2006-2009 (in millions)

Fewer Firms Equals Fewer Commercial Card Accounts

Figure 4-6: Share of Total U.S. Private, Non-Farm Firms: Employer Firms versus Non-Employers/Self-Employed, 2009 (%)

Figure 4-7: Share of Total U.S. Private, Non-Farm Employment: Employer Firms versus Non-Employers/Self-Employed, 2009 (%)

Total Revenues Plummet to $28 Trillion

Table 4-3: Total Revenues of U.S. Employer Firms by Selected Sectors and Non-Employers/Self-Employed, 2005-2009 (in billions $)

Service Sector Fastest Growing

Table 4-4: Percentage Change in Revenues of U.S. Employer Firmsby Selected Sectors and Non-Employers/Self-Employed, 2006-2009

Figure 4-8: Share of Total U.S. Private, Non-Farm Firm Revenues by Selected Major Sectors, 2009 (%)

U.S. Commercial Generated Revenues More Informative For Commercial Card Market

CGR Up Modestly in 2008, Down Dramatically in 2009

CGR to Rebound in 2010

Figure 4-9: U.S. Commercial Generated Revenues and Percent of Total U.S. Firm Revenues, 2005-2014 (in trillions $)

Moderate CGR Growth Through 2014

Visa’s Commercial Consumption Measure

 

 

Chapter 5: Commercial Card Marketplace & Innovation

Still Opportunity in Devastating Economy

Not Your Fathers Recession

Commercial Cards Seen as Cost Reduction Tools

Commercial Cards Closing in on Paper and EFTs

Commercial Card Potential Huge

Much Innovation on the Backend

Satisfaction is High

Commercial Cards Drive Lower P2P Transaction Costs

Commercial Card Risk at Every Level

Managing Risk Through Analytics

Fraud and Security

Payment Fraud Up in 2008

Table 5-1: Payment Types Seeing Most Fraudulent Activity, 2009 (%)

Table 5-2: Primary Party Responsible for Fraud Using Corporate/Commercial Cards, 2009 (%)

Regulation Drives Product Evolution

New Product and Marketing Trends

Innovative Commercial Payment Options Reshape Market

One-Cards for Businesses Big and Small

Smart Cards Market Entry from Government Use

Mobile Pay End-User Willingness High

Biometrics, the Future of Card Use

Payment Systems and Expense Tracking Software

Marketplace Learning Spurs Innovation

Efficiency, Security and Control Price of Entry

Outsourcing Make Entry Easier

Software Tracking Other Payment Types Too

Sagging Economy May Spur Adoption of Both Cards and Systems

Personalization Meaningful in Corporate World

Do the Green Thing

Mindful Partnerships Motivate Small Business Use

Partnerships Can Increase Spending Too

Advertising Expenditures of Major Card Companies

Table 5-3: Top Banks and Associations Ranked by Advertising Spend, 2008 ($ in millions)

Global Marketing Spend of Major Brands Declining

Figure 5-1: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $)

American Express Leads in Global Marketing Spend

Figure 5-2: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $)

Visa Second in Marketing Expense

Figure 5-3: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $)

MasterCard

Discover

 

 

Chapter 6: Corporate Cards & Small Business Cards

Corporate Card Overhaul

Corporate Card Spend Overall to Decline 15% in 2009

Figure 6-1: Global Corporate Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $)

Table 6-1: Global Corporate Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Newer Corporate Card Capabilities Offer Control and Flexibility

More Companies Using Available Systems for Greater Savings and Control

Prepaid Corporate Cards Take Onus off Employees

Opportunity in Mandated Card Use

Capturing More Purchase Volume

Mandated Card Use Allows More Control

Business Travel Hit Will Affect T&E Cards

Strict T&E Oversight the New Normal

Electronic Meeting Alternatives

Card Travel Spend Still a Bargaining Tool

Travel Spend to Bounce Back but Figures Differ

Business Needs Will Still Be a Factor

Small Business Cards: A Powerful Tool For Small Businesses

Small Business Card Volume Takes Dive

Figure 6-2: Global Small Business Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $)

Table 6-2: Global Small Business Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

The Glory Days of Small Business Cards

Small Business Cards Became More Sophisticated

Suddenly, the Market Changed

Can Card Terms Get Any Worse?

Card Reform Doesn't Cover Small Biz Cards

Banks’ Perspective: Self-Preservation

Turmoil Aside, Still Potential in Small Biz

More Small Biz Owners Use Cards for Financing

The Card Companies as Small Business Lenders

 

 

Chapter 7: Purchasing and Fleet Cards

Purchasing Cards: An Influential Category

The P-card/Fleet Market to Decline 12% in 2009

Figure 7-1: Global Purchasing & Fleet Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $)

Table 7-1: Global Purchasing & Fleet Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

P-Card Adoption and Growth Limited to U.S., U.K.

Purchasing Cards Lowers Procurement Costs

Table 7-2: Cost of a Procure-to-Pay Transaction, With and Without a P-Card, 2009

…Plus Enhances Efficiencies

Transaction Volume Rather Low

Table 7-3: Share of Average Monthly Transactions by Program Size as Measured by Number of Cardholders, 2008 (percent)

Not Just Procurement Anymore

Purchasing Card Downside for Suppliers

P-cards Decrease Paper Transactions and Provide Data

GSA’s SmartPay Continues to Grow and Drive P-Card Adoption

Meeting Card: A Mix of T&E and P-Card

Fleet Cards: A More Specific P-card

Components of Fleet Card Revenue

Fleet Fuel Spend and Card Volume Up on High Fuel Prices in 2008

A Sharp Retreat in 2009

Figure 7-2: Total U.S. Fleet Vehicle Fuel Spend, Proprietary Fleet Card Volume, and Percent Fleet Card Volume to Total Fleet Vehicle Fuel Spending, 2005-2009 (in billions $)

Proprietary Fleet Card Spending Slow Through 2014

Fleet Card Users More Informed

More Efficient Vehicles Slow Fuel Demand

Lower Fuel Costs Through Bulk Fuel Sales, Preferred Vendors

Figure 7-3: Total U.S. Fleet Vehicle Fuel Spend, Proprietary Fleet Card Volume, and Percent Fleet Card Volume to Total Fleet Vehicle Fuel Spending Forecast, 2009-2014 (in billions $)

Competition From Open Network Cards a Major Threat to Proprietary Fleet

Higher Fuel Prices = Higher Fleet Card Business, to a Point

Figure 7-4: Monthly Gasoline and Diesel Fuel Price Indexes (not seasonally adjusted), 1999-2009 (index)

Volatile Fuel Costs

Figure 7-5: Average Annual Gasoline and Diesel Fuel Price per Gallon Forecast, 2006-2014 (index)

Future Expectations of Fuel Prices

Wright Express Mobile Payments Pilot

 

Chapter 8: Prepaid, Incentive, Payroll and HSA Cards

Prepaid Cards Pay It Forward

Visa, MasterCard Opened It Up

Prepaid & Benefit Cards Growth Most Robust

Expect Global Growth in Underserved Markets

Figure 8-1: Global Prepaid & Benefit Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $)

Table 8-1: Global Prepaid & Benefit Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)

Excessive Fees Spur Unrest

Table 8-2: Sample Revenue Profile for Prepaid Card Product Excluding Float

Table 8-3: End-User Fees, Prepaid Cards

Nor Regulation…Yet

Regulatory Activity Heating Up

Incentive Prepaid Cards on the Rise

Time is Right for Incentive Cards

Flexibility Important to End-User

Card Loads Lower

Still Room for Merchant Cards

Payroll Cards: Efficient for Companies and Employees

Payroll Load to Reach $43 Billion by 2010

Direct Deposit Mature, Enter Prepaid Payroll

Savings is Clear, Compliance an Impasse

Is Walmart The Tipping Point?

Portable Payroll!

Health Benefit Cards and Soaring Health Costs

Figure 8-2: Total National Health Care Spending and Percent of Total U.S. Gross Domestic Product, 2005-2014 (in trillions $)

Health Insurance Industry Shifting Burden

Health Benefit Account Types

The Health Benefit Card Universe

Figure 8-3: Total Out-of-Pocket Expenses and Percent of Total National Health Care Spending, 2005-2014 (in billions $)

HSA Account Growth Stellar

Tax Filings Show the Growth Too

Figure 8-4: Total Health Savings Account (HSA) Contributions, Distributions, and Filings, 2004-2008 (in billions $)

Interchange and Account Fees a Goldmine

Stellar Growth for HSA Spending at CAGR of 24% Through 2014

Figure 8-5: Total HSA Distributions and Percent of Total Out-of-Pocket Healthcare Spending, 2005-2014 (in billions $)

Appeal of HSAs

HSA Card Volume Growth at CAGR of 27% Through 2014

Figure 8-6: Total HSA Distributions and Percent of Total Out-of-Pocket Healthcare Spending, 2005-2014 (in billions $)

Pending Legislation May Make HSAs Much Less Attractive

 

 

Chapter 9: The U.S. Commercial Card End-User

Simmons Market Research Bureau Data

Card and Cardholder Classifications

Business Card User Penetration Rates

15 Million Business Card Users

Table 9-1: Usage Rates for Selected Credit Card Classifications:Have or Use, Used 12 Months, and Used in last 30 Days, 2009 (% U.S. adults)

Table 9-2: Total Number of Users for Selected Credit Card Classifications: Have or Use, Used in Last 12 Months, and Used in Last 30 Days, 2009 (in millions of U.S. adults)

Card Holder Penetration Levels Hold Steady Year over Year

Table 9-3: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (% U.S. adults)

Table 9-4: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (in millions of U.S. adults)

Total Card Use Versus Business Card Use by Brand

Table 9-5: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (% U.S. adults)

Table 9-6: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (in millions of U.S. adults)

Business Card Penetration by Brand Year over Year Static

Table 9-7: Credit Card and Business Credit Card Penetration Rates, Year over Year, 2004-2009 (% U.S. adults)

Table 9-8: Credit Card and Business Credit Card Penetration Rates, Year over Year, 2004-2009 (in millions of U.S. adults)

Usage in the Past 12 Months at Two Percent Year over Year

Table 9-9: Credit Card and Business Credit Card Usage Rates in the Past 12 Months, Year over Year, 2004-2009 (% U.S. adults)

Table 9-10: Credit Card and Business Credit Card Usage Rates in the Past 12 Months, Year over Year, 2004-2009 (in millions of U.S. adults)

Usage in the Past 30 Days Follows Static Trend

Table 9-11: Credit Card and Business Credit Card Usage Rates in the Past 30 Days, Year over Year, 2004-2009 (% U.S. adults)

Table 9-12: Credit Card and Business Credit Card Usage Rates in the Past 30 Days, Year over Year, 2004-2009 (in millions of U.S. adults)

 

Card Penetration Rates by Gender

Women Higher Penetration For Any Card, Lower For Business Card

Table 9-13: Credit Card and Business Credit Card Usage Rates, by Gender, Year over Year, 2004-2009 (% U.S. adults)

Table 9-14: Credit Card and Business Credit Card Usage Rates, by Gender, Year over Year, 2004-2009 (in millions of U.S. adults)

Men Show Slightly Higher MasterCard Usage in Past 12 Months over Visa and American Express

Table 9-15: Credit Card and Business Credit Card Usage Rates in Last 12 Months and Last 30 Days, by Gender, 2009 (% U.S. adults)

Table 9-16: Credit Card and Business Credit Card Usage Rates in Last 12 Months and Last 30 Days, by Gender, 2009 (in millions of U.S. adults)

 

Business Card User Top Personal Demographics

Baby Boomers are Top Card Users

Several Demographic Characteristics Common Across Brands

Significant Lack of Use Among Blacks and Hispanics

Children in Household Not a Strong as Suspected

Table 9-17: Top Demographic Characteristics of Business Card Users, 2009

Table 9-18: Top Demographic Characteristics of Visa Business Card Users, 2009

Table 9-19: Top Demographic Characteristics of MasterCard Business Card Users, 2009

Table 9-20: Top Demographic Characteristics of American Express Business Card Users, 2009

 

Business Card User Top Work-Related Demographics

Note on Data

Individual Employment Income: High Earners Highly Likely

Table 9-21a: Indices for Use of Selected Credit Card Classifications, by Individual Employment Income, 2009 (U.S. adults)

Table 9-21b: Total Number of Users for Selected Credit Card Classifications, by Individual Employment Income, 2009 (in thousands of U.S. adults)

Table 9-21c: Penetration Levels for Selected Credit Card Classifications, by Individual Employment Income, 2009 (% of U.S. adults)

Employed Adults in Household: Two Most Likely

Table 9-22a: Indices for Use of Selected Credit Card Classifications, by Number of Employed Adults in Household, 2009 (U.S. adults) 197

Table 9-22b: Total Number of Users for Selected Credit Card Classifications, by Employed Adults in Household, 2009 (in thousands of U.S. adults)

Table 9-22c: Penetration Levels for Selected Credit Card Classifications, by Employed Adults in Household, 2009 (% of U.S. adults)

Employment Status: Part-time Workers Less Likely

Table 9-23a: Indices for Use of Selected Credit Card Classifications, by Employment Status, 2009 (U.S. adults)

Table 9-23b: Total Number of Users for Selected Credit Card Classifications, by Employment Status, 2009 (in thousands of U.S. adults)

Table 9-23c: Penetration Levels for Selected Credit Card Classifications, by Employment Status, 2009 (% of U.S. adults)

Hours Work Weekly

Table 9-24a: Indices for Use of Selected Credit Card Classifications, by Hours Work Weekly, 2009 (U.S. adults)

Table 9-24b: Total Number of Users for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (in thousands of U.S. adults)

Table 9-24c: Penetration Levels for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (% of U.S. adults)

Employed by Others/Self-Employed: Self-Employed Pre-disposed to Use

Table 9-25a: Indices for Use of Selected Credit Card Classifications, Employed by Others versus Self-Employed, 2009 (U.S. adults)

Table 9-25b: Total Number of Users for Selected Credit Card Classifications, Employed by Others versus Self-Employed, 2009 (in thousands of U.S. adults)

Table 9-25c: Penetration Levels for Selected Credit Card Classifications, Employed by Others versus Self-Employed, 2009 (% of U.S. adults)

Length at Present Job: Long-Term Employees are Larger Share of Card Holders

Table 9-26a: Indices for Use of Selected Credit Card Classifications, by Length of Service at Present Job, 2009 (U.S. adults)

Table 9-26b: Total Number of Users for Selected Credit Card Classifications, by Length of Service at Present Job, 2009 (in thousands of U.S. adults)

Table 9-26c: Penetration Levels for Selected Credit Card Classifications, by Length of Service at Present Job, 2009 (% of U.S. adults)

Type of Industry: Professional/Scientific/Technological Employees More Likely to be Card Users

Table 9-27a: Indices for Use of Selected Credit Card Classifications, by Type of Industry, 2009 (U.S. adults)

Table 9-27b: Total Number of Users for Selected Credit Card Classifications, by Type of Industry, 2009 (in thousands of U.S. adults)

Occupation: White Collar Dominates

Table 9-28a: Indices for Use of Selected Credit Card Classifications, by Occupation, 2009 (U.S. adults)

Table 9-28b: Total Number of Users for Selected Credit Card Classifications, by Occupation, 2009 (in thousands of U.S. adults)

Table 9-28c: Penetration Levels for Selected Credit Card Classifications, by Occupation, 2009 (% of U.S. adults)

Job Title: Top Managers Highest Penetration but Owners/Partners Above Average Users

Table 9-29a: Indices for Use of Selected Credit Card Classifications, by Job Title, 2009 (U.S. adults)

Table 9-29b: Total Number of Users for Selected Credit Card Classifications, by Job Title, 2009 (in thousands of U.S. adults)

Table 9-29c: Penetration Levels for Selected Credit Card Classifications, by Job Title, 2009 (% of U.S. adults)

Company Size: Smaller Sees Greater Penetration

Table 9-30a: Indices for Use of Selected Credit Card Classifications, by Company Size, 2009 (U.S. adults)

Table 9-30b: Total Number of Users for Selected Credit Card Classifications, by Company Size, 2009 (in thousands of U.S. adults)

Table 9-30c: Penetration Levels for Selected Credit Card Classifications, by Company Size, 2009 (% of U.S. adults)

Business Purchasing Involvement: Dramatically High Across Brands

Table 9-31a: Indices for Use of Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (U.S. adults)

Table 9-31b: Total Number of Users for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (in thousands of U.S. adults)

Table 9-31c: Penetration Levels for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (% of U.S. adults)

Business Purchasing Area of Spend in Last 12 Months: Laptop/Desktop Workstations Are the Top Purchases Among Business Cardholders

Table 9-32a: Indices for Use of Selected Credit Card Classifications, by Personal Involvement in Select Areas of Spend in the Past 12 Months, 2009 (U.S. adults)

Table 9-32b: Total Number of Users for Selected Credit Card Classifications, by Personal Involvement in Select Areas of Spend in the Past 12 Months, 2009 (in thousands of U.S. adults)

Table 9-32c: Penetration Levels for Selected Credit Card Classifications, by Personal Involvement in Select Areas of Spend in the Past 12 Months, 2009 (% of U.S. adults)

Employed by Others: Categories

Table 9-33a: Indices for Use of Selected Credit Card Classifications, by Employed by Others: Categories, 2009 (U.S. adults)

Table 9-33b: Total Number of Users for Selected Credit Card Classifications, by Employed by Others: Categories, 2009 (in thousands of U.S. adults)

Table 9-33c: Penetration Levels for Selected Credit Card Classifications, by Employed by Others: Categories, 2009 (% of U.S. adults)

 

Business Purchasing Trends by Card Type

Business Purchasing Involvement

Table 9-34a: Indices for Use of Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (U.S. adults)

Table 9-34b: Total Number of Users for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (in thousands of U.S. adults)

Table 9-34c: Penetration Levels for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (% of U.S. adults)

Laptop/Desktop Workstations Are the Top Purchases Among Business Cardholders

Table 9-35a: Indices for Use of Selected Credit Card Classifications, by Personal Involvement in Select Business Purchasing Categories in the Past 12 Months, 2009 (U.S. adults)

Table 9-35b: Total Number of Users for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (in thousands of U.S. adults)

Table 9-35c: Penetration Levels for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (% of U.S. adults)

Company Size: Smaller See Greater Penetration

Table 9-36a: Indices for Use of Selected Credit Card Classifications, Hours Work Weekly, 2009 (U.S. adults)

Table 9-36b: Total Number of Users for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (in thousands of U.S. adults)

Table 9-36c: Penetration Levels for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (% of U.S. adults)

 

 

Appendix: Addresses

Commercial Card Networks

Commercial Card Issuers