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Spending on U.S commercial cards is set to reach US$1.2 trillion by 2010, as cards issuers focus on migrating small business purchases to plastic, according to Packaged Facts. The U.S. commercial cards market, which includes purchasing cards and mid- and large-sized corporate cards, will grow by 144 percent from 2004 to 2010, says the New York-based market research firm.
Healthcare cards in particular are showing enormous potential, says Packaged Facts. These cards, used for withdrawing funds from employee healthcare accounts, have experienced triple-digit growth since 2005, and the trend is expected to continue through 2009, it says.
Payroll cards, which give employees immediate access to their wages, are expected to grow to US$27.1 billion in spending by 2009, says Packaged Facts.
Baby Boomers aged 45 to 54 are now the top commercial card users, whereas in the past Gen Xers were the main users, according to Packaged Facts.
The Packaged Facts report says Discover's recent entry into the commercial cards market will help stimulate growth. Separately, American Express has been seeking to expand its corporate cards business, particularly since spinning off its financial advisor arm in September 2005.
"With newcomer Discover and a re-energized American Express, commercial cards are aggressively courting businesses and professionals," Tatjana Meerman, Managing Editor of Packaged Facts, says in a statement.
