In today’s business world, credit cards are an essential tool for making purchases, managing expenses, and building credit. However, the traditional credit card model is undergoing a major transformation, as new technologies are changing the way commercial credit cards are used and managed. One of the most important changes is the digitization of credit card transactions. Thanks to advances in AI and the development of APIs, businesses can now securely process credit card payments without ever handling the physical card. This not only makes transactions more efficient, but it also reduces the risk of fraud. In addition, the emergence of cloud-based accounting systems has made it easier than ever for businesses to track their expenses and manage their cash flow. Finally, the use of distributed ledger technology is beginning to revolutionize the way commercial credit card transactions are settled. By allowing multiple parties to view and verify transactions in real time, DLT has the potential to dramatically reduce transaction costs and settlement times. Commercial credit cards are evolving rapidly
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Data for today’s episode is provided by Mercator Advisory Group’s report – Steady Progress Through Easing the Experience: Commercial Cards Success Prescription
5 Trends Affecting Commercial Credit Cards:
- Artificial Intelligence: an umbrella term used for technology such as machine learning is finding uses in risk management and financial operations.
- APIs: these are facilitating an open banking environment and the rapid delivery of new products and services.
- Digitalization: the modernization of legacy systems across the cash cycle enables process automation.
- Cloud: comes in private, public and hybrid forms, allowing the potential for reduced infrastructure costs and faster market reaction time.
- Distributed Ledger: blockchain technology is finding use cases in cross-border payments and trade services.
Consistently improving the product and delivery systems pays dividends. Incremental and ongoing improvement is the hallmark of the commercial credit card industry, and in these tough times, making things easier for clients will help revive spend.
This Viewpoint, Steady Progress Through Easing the Experience: Commercial Cards Success Prescription, summarizes Mercator’s take on key technology trends and the focus of the commercial card industry as economies and card revenues recover from the recessionary environment created by federal, state and local government policy dictates in response to the pandemic