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Data for today’s episode is provided by Mercator Advisory Group’s report – Financing Commercial Trade: The Search for Liquidity.
Snapshot: Size and Segments of US Commercial Card Spend
- US commercial cards represent just 5% of total B2B payments.
- However, US B2B payments comprise an enormous market of $25 trillion.
- Small business payments comprise the largest single category of US commercial card spend: 36.5%.
- Prepaid makes up the 2nd largest category of US commercial card spend: 19.9%.
- Purchasing cards (p-cards) makes up 17.1% of US commercial card spend.
- Virtual cards (v-card) and Travel & Entertainment make up 10% each.
- Combining both open/closed loop, fleet cards make up 5.9% of US commercial card spend.
Mercator Advisory Group’s latest research report, Financing Commercial Trade: The Search for Liquidity, provides a direct view into the latest trends in technology and tools in the trade finance space. Traditional trade finance remains a primary method for managing risk and creating liquidity, especially for international commercial merchandise exports and imports. There are now more methods than ever before to access liquidity and promote both domestic and international flows of goods and services.
“One of the interesting things we discovered during discussions with industry participants has been a marked uptick in the recognition of working capital management effectiveness, particularly as the coronavirus sledgehammer policies hit businesses,” commented Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service, author of the report, “so expectations for the adoption of these and other digital solutions have greatly increased.”