According to a survey released by consulting services provider RBR, in most European countries, the development of this sector will continue to be hindered by regulations, the economy and consumers’ tendency to use alternative forms of payment.
Research has indicated that at the end of 2010, there were 35.9 million commercial cards in Western Europe and 5.3 million in Central and Eastern Europe (CEE). Results also indicate that only 4 percent of all payment cards in Western Europe were commercial cards, while in CEE the percentage only reached 2 percent.
The same source has also mentioned that the number of commercial cards in Western Europe is expected to grow by a CAGR of 3 percent, reaching 42.6 million by 2015. The annual growth rate is expected to be higher in CEE (8 percent), reaching 7.8 million by 2015. The RBR study has also shown that the growth rates could rise to 6 percent and 10 percent per year, respectively if bank and Travel and Entertainment (T&E) commercial cards would be taken into account.
With regard to payment methods, the survey has pointed out that in 2010, 1.5 billion commercial card payments were made in Western Europe, as compared to 137 million in CEE. Data has unveiled that less than 4 percent of total card payments have been made with commercial cards in both regions. The number of commercial card payments is expected to grow at a CAGR of 6 percent and 10 percent respectively in Western Europe and CEE by 2015.
Research has also analyzed the amount of money spent on commercial cards in Western Union and CEE. In 2010, in Western Union EUR 157 billion were spent on commercial cards, while in CEE, the amount reached EUR 16 billion. The value of commercial card payments is forecast to grow at a CAGR of 6 percent and 13 percent in Western Europe and CEE by 2015.
The study covers 33 countries in both Western European and CEE regions.
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