PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Impact of COVID-19 on the Asia Pacific Commercial Credit Card Market:

PaymentsJournal by PaymentsJournal
July 16, 2021
in Commercial Finance, Corporate Banking, Truth In Data
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Commercial Credit Cards: International Markets Review and Forecast, 2020-2025; COVID Bounce Back Not Expected Until 2023

Predictions for the International Commercial Credit Card Market: 

  • Prior to the pandemic, Asia Pacific had the fastest growing commercial card spend trajectory, with value second only to North America.
  • Mercator estimates that commercial credit card spend across the Asia-Pacific region was $110.9 billion in 2020, a 40% decline from the prior year.
  • Using overall credit cards as a guidepost there was a roughly 11% decline in credit card spending across the region in 2020.
  • As with all global regions, the steep decline in business travel spend and related business activities has had the greatest impact on card spend in 2020.
  • Mercator expects about a 20% uptick in 2021, and by 2023 regional business travel spend will return to 2019 levels.
  • Mercator estimates some virtual card growth in 2020 and a continuing CAGR of 36.1% through 2025.

About Report

In global markets outside of North America, spending growth remains underpinned by corporate cards, used mostly for travel and entertainment (T&E), as well as virtual cards used to settle with travel management companies. The consequent spending volume in corporate cards is closely tied to travel budgets and general corporate adoption. The pandemic had a deleterious effect on global business travel spend. A new research report from Mercator Advisory Group, Commercial Credit Cards: International Markets Review and Forecast, 2020-2025; COVID Bounce Back Not Expected Until 2023, reviews the current situation and outlook as the industry recovers from the effects of COVID-19 and business lockdowns.

Given the remedies selected by most government entities to combat viral spread, varying levels of GDP declines were felt across regions in 2020, with economic recovery expected to have a similar level of variability during 2021-22. As such there was an expected massive drop off in spending on corporate cards. Commercial credit card spend for mid-large market companies outside of North America was 42% lower than in 2019. Going forward, recovery levels and expected behavioral changes in business travel are the most pressing issue. A continued shift to digital payments and virtual cards will help improve spending levels through 2022 and partially offset the travel slowdowns. In this report we will discuss the overall pandemic impact on economic growth, then address how that plays out both short and longer term on spending in each indicated region.

“The pandemic underscored the relative dependency of the commercial card industry in most regions on business travel versus the broader B2B use cases that have been pursued in North America, and to some extent, Western Europe,” commented Steve Murphy, Director of the Commercial and Enterprise Advisory Service at Mercator Advisory Group, the author of this report. “Once economies emerge again, which is already underway, travel will return at some level, but most issuers will be redoubling efforts to expand commercial card spend into B2B uses.”

Tags: APACBusiness Cardscommercial cardsCommercial financeCredit Cardstraveltravel cardsTruth In Data
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    February 8, 2023
    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix