Commercial payment cards have paved its way in both developed and developing countries. Their demand increased by continued technological advancements and increasing preference for cashless payments. Commercial payment card has grown the scope of businesses at the global level, as payments can be made across nations. Moreover, various corporate card companies are offering incentives to card holders such as rewards and points that can be redeemed while purchasing or booking tickets. Commercial payment card companies are also offering short-term loans instantly, which also turned up as an important driving factor. These factors are expected to stoke up the demand for commercial payment cards.
How online payment systems are hampering the demand for commercial payment cards?
Despite, the growing demand for commercial payment cards there are few restraints obstructing the growth in the commercial payment cards market. One of the key restraints is the rising popularity of online banking application. People, nowadays prefer online payment means to transfer money irrespective if the amount is large or small. Recently, in India Unified Payment Interface (UPI) has gained huge popularity and is now holding a significant share in the market. As per the data revealed by the Reserve Bank of India, transaction through UPI has crossed half the value of credit and debit cards in various stores until March 2018.
Moreover, rise in international customer who prefers using debit card and changing regulatory policies are also expected to deter demand for commercial payment cards in emerging economies. Another example is of China’s UnionPay. It is one of the most preferred means of transaction carried out in the home country as most of the Western networks remains shut out of China. However, worth of UnionPay on internationally issued cards has skyrocketed, thus creating a strong foundation for continued international growth. These factors must be dealt cautiously as they might hamper the growth in the commercial payment cards market in near future.
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Why developed countries are considered prime contributor in for the global commercial payment cards market?
Developed countries especially in North America and Europe are expected to dominate the global commercial payment cards market. Stating the growth especially in North America is mainly because of large number of credit card users functional in the region. Rising number of commercial business is also expected to drive the demand in this market. Another factor is changing lifestyle and rising dependency on credit cards has boosted the demand for commercial payment cards largely.
On the other hand, emerging economies in Asia Pacific is also expected to create high growth opportunities for commercial payment cards. Rapid growth in the BSFI sector is major reason that led the demand in the commercial payment cards market. In addition, people are more aware about the benefits of the credit cards coupled with changing lifestyle augmented the demand for commercial payment cards.