Commercial Payment Cards: The U.S. and Global Markets and Trends, 6th Edition

782 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
782
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Commercial Payment Cards: The U.S. and Global Markets and Trends, 6th Edition

  1. 1.    Get more info on this report!Commercial Payment Cards: The U.S. and Global Markets and Trends, 6th EditionDecember 1, 2009The commercial payment card market has undergone a transformation in recent yearsas the associations and issuers strive to convince companies of the various benefits.Once a fairly simple market comprising travel and entertainment cards and fuel cards,the commercial payment card universe has become more complex with increasedsegmentation and functionality. But the lines between products have also blurredresulting in card products that combine several cards into one. Purchasing cards haveemerged as the champion of commercial payments with the expectation of eventuallyreplacing a substantial portion of paper-based procurement. The fact that commercialcards capture a mere fraction of total commercial payments highlights the potential ofthe opportunity at hand.The financial crisis of 2008 that led to the economic meltdown in 2009 posed both ahurdle and an opportunity for the commercial payment card market. On the one hand,products such as small business cards suffered massive declines in purchase volumeand skyrocketing charge-off rates. On the other hand, the consolidation of several majorissuers and the weeding out of weaker players, combined with a new drive towardcorporate cost control and efficiency, may have set the stage for a quick recovery in2010.This Packaged Facts report, which has been renamed from corporate credit cards,presents data and analysis on the global and U.S. market for commercial paymentcards. The report presents the size and growth of the market by examining key metricsfor the 2005-2009 period and providing forecasts through 2014. Included arediscussions and analysis of the various commercial payment card types, trends andfactors affecting their growth, and a focused analysis of commercial card end userdemographics and preferences. In addition, major card brands and issuers are profiledto provide a competitive landscape.Read an excerpt from this report below.Methodology
  2. 2. Packaged Facts’ study of commercial payment cards is based on extensive secondaryresearch and interviews with industry and regional experts. Secondary sources includedata-gathered from relevant trade, business, and government sources, including cardindustry journals, trade and general press (print and electronic), annual reports and10(k) filings, company literature, consultancy publications, Packaged Facts reports,websites and white papers.Packaged Facts’ analysis of consumer behavior and demographics derives from thespring 2009 Experian Simmons Market Research Bureau’s (New York, NY) adultconsumer surveys, which are based on approximately 25,000 respondents age 18 orover.What You’ll Get in this ReportCommercial Payment Cards makes important predictions and recommendationsregarding the future of this market, and pinpoints ways current and prospective playerscan capitalize on current trends and spearhead new ones. No other market researchreport provides both the comprehensive analysis and extensive data that CommercialPayment Cards offers.Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts,tables and graphs.How You Will Benefit from this ReportIf your company is already doing business in the commercial payment card market, or isconsidering making the leap, you will find this report invaluable, as it provides acomprehensive package of information and insight not offered in any other singlesource. You will gain a thorough understanding of the current market for commercialpayment cards, as well as projected markets and trends through 2014.This report will help: • Marketing Managers identify market opportunities and develop targeted promotion plans for commercial payment cards. • Research and development professionals stay on top of competitor initiatives and explore demand for commercial payment cards. • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel businesses to use commercial payment cards. • Business development executives understand the dynamics of the market and identify possible partnerships. • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.
  3. 3. Table of ContentsChapter 1: Executive Summary Scope Commercial Payment Card Categories Products Out of Scope Methodology Global Payment Card Market Tops $1.0 Trillion Figure 1-1: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $) Small Business Cards Lead Decline Table 1-1: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $) U.S. Market Accounts for Bulk of Global Purchase Volume Table 1-2: U.S. Commercial Payment Card Purchase Volume and Year-over- Year Percentage Change, 2005-2009 (in billions $) Commercial Card Market to Grow in 2010 Figure 1-2: Global Commercial Payment Card Purchase Volume Forecast, 2009- 2014 (in billions $) Purchasing, Fleet to Add Most Purchase Volume Table 1-3: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $) U.S. Market Forecast Table 1-4: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $) Visa Leading U.S. Commercial Card Brand Figure 1-3: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%) GDP Growth Stalls in 2009, to Rebound in 2010 Emerging Economies May Be Greatest Prospect for Commercial Cards
  4. 4. Charge-off Rates, Unemployment Go Sky HighRising Delinquencies, Charge-offs, Unemployment to Continue Higher“Real” Unemployment Rising, a Sign of Further Trouble AheadTotal Firms Contract to 29 MillionTable 1-5: Total Number of U.S. Firms and Total Employment for Employer Firmsand Non-Employers/Self-Employed, 2005-2009 (in millions)Business Bankruptcies SkyrocketCommercial Generated Revenues Down Dramatically in 2009, to Rebound in2010Figure 1-4: U.S. Commercial Generated Revenues and Percent of Total U.S.Firm Revenues, 2005-2014 (in trillions $)Visa’s Commercial Consumption MeasureCommercial Card Trends in a Down EconomyCommercial Cards as Cost Reduction ToolsCommercial Cards Ready to Horn in on Paper and EFTsSagging Economy May Spur Adoption of Cards and SystemsSatisfaction is HighManaging Risk Through AnalyticsPayment Fraud Up in 2008Innovative Commercial Payment Options Reshape MarketEfficiency, Security and Control Price of EntryOutsourcing Make Entry EasierGlobal Marketing Spend of Major Brands DecliningFigure 1-5: Major Payment Card Brand Marketing Expenses, 2006-2009 (inmillions $)Business Card End-User Demographics15 Million Business Card UsersTable 1-6: Usage Rates for Selected Credit Card Classifications: Have or Use,Used 12 Months, and Used in last 30 Days, 2009 (% U.S. adults)
  5. 5. Baby Boomers are Top Card Users Part-time Workers Less Likely, Self-Employed More Likely Professional/Scientific/Technological Employees More Likely to Be Card Users Business Purchasing Involvement: Dramatically High Across BrandsChapter 2: The Market Scope Commercial Payment Card Categories Products Out of Scope MethodologyThe Global Payment Card Market Overview Rapid Expansion of the Global Payment Card Market Global Payment Card Purchase Volume Declines in 2009 Figure 2-1: Global Payment Card Purchase Volume, 2005-2009 (in billions $) Payment Cards Continue to Replace Other Forms of Payment Table 2-1: Global Payment Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $)The Global Commercial Payment Card Market Global Payment Card Market Tops $1.0 Trillion Commercial Market in 2009 Plummets Figure 2-2: Global Commercial Payment Card Purchase Volume, 2005-2009 (in billions $) Table 2-2: Global Commercial Payment Card Purchase Volume and Year-over- Year Percentage Change, 2005-2009 (in billions $) Global Market by Brand Visa, Inc. Leads Global Market Visa Europe Declines More Shallow America Express No Longer on Top MasterCard Growth Suffers From Advanta Collapse, Small Business China UnionPay the One to Watch
  6. 6. Other Commercial Payment Brands Find Strength in Home Markets Table 2-3: Annual Global Commercial Payment Card Purchase Volume by Brand, 2005-2009 (in billions $) Global Brand Share Shifts in Visa’s Favor Figure 2-3: Share of Global Commercial Payment Card Volume by Brand, 2009 (%) Global Market by Category Innovation into Category Extinction Corporate Cards’ Steady Growth Falters Small Business Cards Suffer Largest 2009 Decline Purchasing & Fleet Cards Suffer from Lower Gas Prices Prepaid & Benefit Cards Keep Growing Table 2-4: Global Commercial Payment Card Volume by Category, 2005-2009 (in billions $) Global Share by Category Figure 2-4: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%)The U.S. Commercial Payment Card Market U.S. Market Accounts for Bulk of Global Purchase Volume U.S. Payment Card Purchase Volume Declines in 2009 Figure 2-5: U.S. Commercial Payment Card Purchase Volume and Percentage of Total Global Commercial Card Payment Volume, 2005-2009 (in billions $) Table 2-5: U.S. Commercial Payment Card Purchase Volume and Year-over- Year Percentage Change, 2005-2009 (in billions $) U.S. Market by Major Brand Visa in U.S. Grabs Largest Share American Express’s U.S. Business Suffers MasterCard’s Robust U.S. Growth Does an About-Face Discover Only a Minor Player
  7. 7. Table 2-6: Annual U.S. Commercial Payment Card Purchase Volume by Major Brand, 2005-2009 (in billions $)Market Forecast It Wasn’t a Very Good Year Hope for a Rebound in 2010 Commercial Card Market to Grow in 2010 Figure 2-6: Global Commercial Payment Card Purchase Volume Forecast, 2009- 2014 (in billions $) Through 2014 Growth to Grow Purchase Volume by 50% Table 2-7: Global Commercial Payment Card Purchase Volume and Year-over- Year Percentage Change, 2009-2014 (in billions $) Global Market Forecast by Brand China UnionPay Becomes a Player Table 2-8: Global Annual Commercial Payment Card Purchase Volume Forecast by Brand, 2009-2014 (in billions $) Global Market Forecast by Category Purchasing, Fleet to Add Most Purchase Volume Corporate Cards to Grow at Slower Pace Prepaid, Benefit Card Volume Growth the Most Robust Small Business Volume Growth May be Hampered Table 2-9: Global Commercial Payment Card Purchase Volume by Category, 2009-2014 (in billions $) U.S. Market Forecast Figure 2-7: U.S. Commercial Payment Card Purchase Volume Forecast and Percentage of Total Global Commercial Card Payment Volume, 2009-2014 (in billions $) Table 2-10: U.S. Commercial Payment Card Purchase Volume Forecast and Year-over-Year Percentage Change, 2009-2014 (in billions $)Chapter 3: Competitor Landscape Overview Visa Leading U.S. Commercial Card Brand
  8. 8. MasterCard a Close Third Figure 3-1: Share U.S. Commercial Payment Card Volume by Major Branded Network, 2009 (%) JCB and China UnionPay Notable in Global MarketProfile: Visa, Inc Table 3-1: Visa, Inc. Key Performance Metrics, 2005-2009 Visa, Inc. Global Commercial Volume Figure 3-2: Visa, Inc. Total Global Commercial Volume and Percent of Visa, Inc. Total Global Volume, 2005-2009 (in billions $) Table 3-2: Visa, Inc. Total Global Commercial Volume and Year-over-Year Percent Change, 2005-2009 (in billions $) Visa, Inc. Global Small Business Volume Figure 3-3: Visa, Inc. Total Small Business Volume and Percent of Visa, Inc. Global Commercial Volume, 2005-2009 (in billions $) Table 3-3: Visa, Inc. Total Small Business Volume and Year-over-Year Percent Change, 2005-2009 (in billions $)Profile: MasterCard Worldwide Table 3-4: MasterCard Worldwide Key Performance Metrics, 2005-2009 MasterCard Worldwide Global Commercial Volume Figure 3-4: MasterCard Worldwide Total Global Commercial Volume and Percent of MasterCard Worldwide Total Global Volume, 2005-2009 (in billions $) Table 3-5: MasterCard Worldwide Total Global Commercial Volume and Year- over-Year Percent Change, 2005-2009 (in billions $) MasterCard Worldwide Global Small Business Volume Figure 3-5: MasterCard Worldwide Total Small Business Volume and Percent of MasterCard Worldwide Global Commercial Volume, 2005-2009 (in billions $) Table 3-6: MasterCard Worldwide Total Small Business Volume and Year-over- Year Percent Change, 2005-2009 (in billions $)Profile: American Express Company Table 3-7: American Express Company Key Performance Metrics, 2005-2009 American Express Company Global Commercial Volume
  9. 9. Figure 3-6: American Express Company Total Global Commercial Volume and Percent of American Express Company Total Global Volume, 2005-2009 (in billions $) Table 3-8: American Express Company Total Global Commercial Volume and Year-over-Year Percent Change, 2005-2009 (in billions $) American Express Company Global Small Business Volume Figure 3-7: American Express Company Total Small Business Volume and Percent of American Express Company Global Commercial Volume, 2005-2009 (in billions $) Table 3-9: American Express Company Total Small Business Volume and Year- over-Year Percent Change, 2005-2009 (in billions $)The Issuer Landscape American Express, Issuer and Card Brand, on Top JPMorgan Chase Vaults to Number Two Wells Fargo Poised for Major GrowthProfile: JPMorgan Chase JPMorgan Chase Commercial Card Growth Robust Product Offerings Table 3-10: JPMorgan Chase Commercial Card Product Portfolio, 2009 Chase Targets Small Business with Ink Competing with American Express a Major Strategy Chase Blueprint to Help Manage Paying BalancesProfile: U.S. Bancorp Table 3-11: U.S. Bancorp Commercial Card Product Portfolio, 2009 Cash Rewards Small Business Card to Attract New Banking Customers U.S. Bank Pilots Multi-Function Card 2008 Hot for Purchasing, Fleet Cards Purchasing, Fleet Take a Breather in 2009 Table 3-12: U.S. Bancorp Key Performance Metrics, 2005-2009 Biodegradable PVC Fleet Cards for Voyager Customers
  10. 10. SmartPay Program Big Business for U.S. BankProfile: Advanta Figure 3-8: Advanta Corp. Total Card Volume and Number of Accounts at End of Period, 2005-2009 (in millions $) Figure 3-9: Advanta Corp. Total Credit Card Charge-Offs and Charge-Off Rates, Owned and Managed Basis, 2005-2009 (in millions $) Q1 2009 Sees the Beginning of the End Advanta Exits Credit Card Business Advanta Problems Indicative of Larger ProblemA Look at Closed Loop Fleet Networks Fleetcor Becomes a Player Comdata Clinging to Number One Wright Express Cannibalizing Business Voyager, T-Chek Bring Up the Rear Figure 3-10: Share U.S. Closed Loop Network Fleet Card Volume, 2009 (%) Profile: Wright Express Table 3-13: Wright Express Commercial Card Product Portfolio, 2009 2008 a Boon Year for Wright Express Table 3-14: Wright Express Key Performance Metrics, 2005-2009 Lower Gas Prices & Fewer Transactions Lower Revenue in 2009 Wright Express Gets Federal Government BusinessChapter 4: Global and U.S. Economic Environment Global GDP Growth Figure 4-1: Global GDP for the United States, Ex-U.S. G7 Countries, and Emerging and Developing Economies, 2005-2014 (in billions current $) Growth Stalls in 2009 GDP Growth for 2010 and Beyond Emerging Economies May Be Greatest Prospect for Commercial Cards
  11. 11. Figure 4-2: Share of Global GDP for the United States, Ex-U.S. G7 Countries,and Emerging and Developing Economies, 2005-2014 (percent)U.S. Unemployment and Credit Card DefaultsDelinquency Rate a Leading Indicator?Delinquency Rate Volatility May Signal Change in Direction for Charge-offs,UnemploymentUseful for Small Business Card IssuersCharge-off Rates, Unemployment Go Sky HighFigure 4-3: Seasonally Adjusted Quarterly Credit Card Charge-off andDelinquency Rates versus Unemployment, Alternative Measures ofUnemployment Rates and Spread, 1994Q1-2009Q3 (percent)Rising Delinquencies, Charge-offs, Unemployment to Continue Higher“Real” Unemployment Much HigherSpread Expands DramaticallyFigure 4-4: Seasonally Adjusted Quarterly Credit Card Charge-off andDelinquency Rates versus Unemployment, Alternative Measures ofUnemployment Rates and Spread, 1994Q1-2009Q3 (percent)A Sign of Further Trouble AheadU.S. Business Landscape as BellwetherTotal Firms Contract to 29 MillionTable 4-1: Total Number of U.S. Firms and Total Employment for Employer Firmsand Non-Employers/Self-Employed, 2005-2009 (in millions)Business Bankruptcies SkyrocketMost Business Bankruptcies Lead to LiquidationFigure 4-5: Quarterly Business Bankruptcy Filings, 1994-2009 (number)Employment Drops 5%Table 4-2: Percentage Change in U.S. Firms and Total Employment for EmployerFirms and Non-Employers/Self-Employed, 2006-2009 (in millions)Fewer Firms Equals Fewer Commercial Card AccountsFigure 4-6: Share of Total U.S. Private, Non-Farm Firms: Employer Firms versusNon-Employers/Self-Employed, 2009 (%)
  12. 12. Figure 4-7: Share of Total U.S. Private, Non-Farm Employment: Employer Firms versus Non-Employers/Self-Employed, 2009 (%) Total Revenues Plummet to $28 Trillion Table 4-3: Total Revenues of U.S. Employer Firms by Selected Sectors and Non- Employers/Self-Employed, 2005-2009 (in billions $) Service Sector Fastest Growing Table 4-4: Percentage Change in Revenues of U.S. Employer Firmsby Selected Sectors and Non-Employers/Self-Employed, 2006-2009 Figure 4-8: Share of Total U.S. Private, Non-Farm Firm Revenues by Selected Major Sectors, 2009 (%) U.S. Commercial Generated Revenues More Informative For Commercial Card Market CGR Up Modestly in 2008, Down Dramatically in 2009 CGR to Rebound in 2010 Figure 4-9: U.S. Commercial Generated Revenues and Percent of Total U.S. Firm Revenues, 2005-2014 (in trillions $) Moderate CGR Growth Through 2014 Visa’s Commercial Consumption MeasureChapter 5: Commercial Card Marketplace & Innovation Still Opportunity in Devastating Economy Not Your Fathers Recession Commercial Cards Seen as Cost Reduction Tools Commercial Cards Closing in on Paper and EFTs Commercial Card Potential Huge Much Innovation on the Backend Satisfaction is High Commercial Cards Drive Lower P2P Transaction Costs Commercial Card Risk at Every Level Managing Risk Through Analytics Fraud and Security
  13. 13. Payment Fraud Up in 2008 Table 5-1: Payment Types Seeing Most Fraudulent Activity, 2009 (%) Table 5-2: Primary Party Responsible for Fraud Using Corporate/Commercial Cards, 2009 (%) Regulation Drives Product EvolutionNew Product and Marketing Trends Innovative Commercial Payment Options Reshape Market One-Cards for Businesses Big and Small Smart Cards Market Entry from Government Use Mobile Pay End-User Willingness High Biometrics, the Future of Card Use Payment Systems and Expense Tracking Software Marketplace Learning Spurs Innovation Efficiency, Security and Control Price of Entry Outsourcing Make Entry Easier Software Tracking Other Payment Types Too Sagging Economy May Spur Adoption of Both Cards and Systems Personalization Meaningful in Corporate World Do the Green Thing Mindful Partnerships Motivate Small Business Use Partnerships Can Increase Spending Too Advertising Expenditures of Major Card Companies Table 5-3: Top Banks and Associations Ranked by Advertising Spend, 2008 ($ in millions) Global Marketing Spend of Major Brands Declining Figure 5-1: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $) American Express Leads in Global Marketing Spend
  14. 14. Figure 5-2: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $) Visa Second in Marketing Expense Figure 5-3: Major Payment Card Brand Marketing Expenses, 2006-2009 (in millions $) MasterCard DiscoverChapter 6: Corporate Cards & Small Business Cards Corporate Card Overhaul Corporate Card Spend Overall to Decline 15% in 2009 Figure 6-1: Global Corporate Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $) Table 6-1: Global Corporate Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $) Newer Corporate Card Capabilities Offer Control and Flexibility More Companies Using Available Systems for Greater Savings and Control Prepaid Corporate Cards Take Onus off Employees Opportunity in Mandated Card Use Capturing More Purchase Volume Mandated Card Use Allows More Control Business Travel Hit Will Affect T&E Cards Strict T&E Oversight the New Normal Electronic Meeting Alternatives Card Travel Spend Still a Bargaining Tool Travel Spend to Bounce Back but Figures Differ Business Needs Will Still Be a Factor Small Business Cards: A Powerful Tool For Small Businesses Small Business Card Volume Takes Dive Figure 6-2: Global Small Business Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $)
  15. 15. Table 6-2: Global Small Business Card Purchase Volume and Year-over-Year Percentage Change, 2005-2009 (in billions $) The Glory Days of Small Business Cards Small Business Cards Became More Sophisticated Suddenly, the Market Changed Can Card Terms Get Any Worse? Card Reform Doesnt Cover Small Biz Cards Banks’ Perspective: Self-Preservation Turmoil Aside, Still Potential in Small Biz More Small Biz Owners Use Cards for Financing The Card Companies as Small Business LendersChapter 7: Purchasing and Fleet Cards Purchasing Cards: An Influential Category The P-card/Fleet Market to Decline 12% in 2009 Figure 7-1: Global Purchasing & Fleet Card Purchase Volume and Share of Global Commercial Card Purchase Volume, 2005-2009 (in billions $) Table 7-1: Global Purchasing & Fleet Card Purchase Volume and Year-over- Year Percentage Change, 2005-2009 (in billions $) P-Card Adoption and Growth Limited to U.S., U.K. Purchasing Cards Lowers Procurement Costs Table 7-2: Cost of a Procure-to-Pay Transaction, With and Without a P-Card, 2009 …Plus Enhances Efficiencies Transaction Volume Rather Low Table 7-3: Share of Average Monthly Transactions by Program Size as Measured by Number of Cardholders, 2008 (percent) Not Just Procurement Anymore Purchasing Card Downside for Suppliers P-cards Decrease Paper Transactions and Provide Data GSA’s SmartPay Continues to Grow and Drive P-Card Adoption
  16. 16. Meeting Card: A Mix of T&E and P-Card Fleet Cards: A More Specific P-card Components of Fleet Card Revenue Fleet Fuel Spend and Card Volume Up on High Fuel Prices in 2008 A Sharp Retreat in 2009 Figure 7-2: Total U.S. Fleet Vehicle Fuel Spend, Proprietary Fleet Card Volume, and Percent Fleet Card Volume to Total Fleet Vehicle Fuel Spending, 2005-2009 (in billions $) Proprietary Fleet Card Spending Slow Through 2014 Fleet Card Users More Informed More Efficient Vehicles Slow Fuel Demand Lower Fuel Costs Through Bulk Fuel Sales, Preferred Vendors Figure 7-3: Total U.S. Fleet Vehicle Fuel Spend, Proprietary Fleet Card Volume, and Percent Fleet Card Volume to Total Fleet Vehicle Fuel Spending Forecast, 2009-2014 (in billions $) Competition From Open Network Cards a Major Threat to Proprietary Fleet Higher Fuel Prices = Higher Fleet Card Business, to a Point Figure 7-4: Monthly Gasoline and Diesel Fuel Price Indexes (not seasonally adjusted), 1999-2009 (index) Volatile Fuel Costs Figure 7-5: Average Annual Gasoline and Diesel Fuel Price per Gallon Forecast, 2006-2014 (index) Future Expectations of Fuel Prices Wright Express Mobile Payments PilotChapter 8: Prepaid, Incentive, Payroll and HSA Cards Prepaid Cards Pay It Forward Visa, MasterCard Opened It Up Prepaid & Benefit Cards Growth Most Robust Expect Global Growth in Underserved Markets
  17. 17. Figure 8-1: Global Prepaid & Benefit Card Purchase Volume and Share of GlobalCommercial Card Purchase Volume, 2005-2009 (in billions $)Table 8-1: Global Prepaid & Benefit Card Purchase Volume and Year-over-YearPercentage Change, 2005-2009 (in billions $)Excessive Fees Spur UnrestTable 8-2: Sample Revenue Profile for Prepaid Card Product Excluding FloatTable 8-3: End-User Fees, Prepaid CardsNor Regulation…YetRegulatory Activity Heating UpIncentive Prepaid Cards on the RiseTime is Right for Incentive CardsFlexibility Important to End-UserCard Loads LowerStill Room for Merchant CardsPayroll Cards: Efficient for Companies and EmployeesPayroll Load to Reach $43 Billion by 2010Direct Deposit Mature, Enter Prepaid PayrollSavings is Clear, Compliance an ImpasseIs Walmart The Tipping Point?Portable Payroll!Health Benefit Cards and Soaring Health CostsFigure 8-2: Total National Health Care Spending and Percent of Total U.S. GrossDomestic Product, 2005-2014 (in trillions $)Health Insurance Industry Shifting BurdenHealth Benefit Account TypesThe Health Benefit Card UniverseFigure 8-3: Total Out-of-Pocket Expenses and Percent of Total National HealthCare Spending, 2005-2014 (in billions $)HSA Account Growth Stellar
  18. 18. Tax Filings Show the Growth Too Figure 8-4: Total Health Savings Account (HSA) Contributions, Distributions, and Filings, 2004-2008 (in billions $) Interchange and Account Fees a Goldmine Stellar Growth for HSA Spending at CAGR of 24% Through 2014 Figure 8-5: Total HSA Distributions and Percent of Total Out-of-Pocket Healthcare Spending, 2005-2014 (in billions $) Appeal of HSAs HSA Card Volume Growth at CAGR of 27% Through 2014 Figure 8-6: Total HSA Distributions and Percent of Total Out-of-Pocket Healthcare Spending, 2005-2014 (in billions $) Pending Legislation May Make HSAs Much Less AttractiveChapter 9: The U.S. Commercial Card End-User Simmons Market Research Bureau Data Card and Cardholder ClassificationsBusiness Card User Penetration Rates 15 Million Business Card Users Table 9-1: Usage Rates for Selected Credit Card Classifications:Have or Use, Used 12 Months, and Used in last 30 Days, 2009 (% U.S. adults) Table 9-2: Total Number of Users for Selected Credit Card Classifications: Have or Use, Used in Last 12 Months, and Used in Last 30 Days, 2009 (in millions of U.S. adults) Card Holder Penetration Levels Hold Steady Year over Year Table 9-3: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (% U.S. adults) Table 9-4: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (in millions of U.S. adults) Total Card Use Versus Business Card Use by Brand Table 9-5: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (% U.S. adults) Table 9-6: Credit Card and Business Credit Card Usage Rates, Year over Year, 2004-2009 (in millions of U.S. adults)
  19. 19. Business Card Penetration by Brand Year over Year Static Table 9-7: Credit Card and Business Credit Card Penetration Rates, Year over Year, 2004-2009 (% U.S. adults) Table 9-8: Credit Card and Business Credit Card Penetration Rates, Year over Year, 2004-2009 (in millions of U.S. adults) Usage in the Past 12 Months at Two Percent Year over Year Table 9-9: Credit Card and Business Credit Card Usage Rates in the Past 12 Months, Year over Year, 2004-2009 (% U.S. adults) Table 9-10: Credit Card and Business Credit Card Usage Rates in the Past 12 Months, Year over Year, 2004-2009 (in millions of U.S. adults) Usage in the Past 30 Days Follows Static Trend Table 9-11: Credit Card and Business Credit Card Usage Rates in the Past 30 Days, Year over Year, 2004-2009 (% U.S. adults) Table 9-12: Credit Card and Business Credit Card Usage Rates in the Past 30 Days, Year over Year, 2004-2009 (in millions of U.S. adults)Card Penetration Rates by Gender Women Higher Penetration For Any Card, Lower For Business Card Table 9-13: Credit Card and Business Credit Card Usage Rates, by Gender, Year over Year, 2004-2009 (% U.S. adults) Table 9-14: Credit Card and Business Credit Card Usage Rates, by Gender, Year over Year, 2004-2009 (in millions of U.S. adults) Men Show Slightly Higher MasterCard Usage in Past 12 Months over Visa and American Express Table 9-15: Credit Card and Business Credit Card Usage Rates in Last 12 Months and Last 30 Days, by Gender, 2009 (% U.S. adults) Table 9-16: Credit Card and Business Credit Card Usage Rates in Last 12 Months and Last 30 Days, by Gender, 2009 (in millions of U.S. adults)Business Card User Top Personal Demographics Baby Boomers are Top Card Users Several Demographic Characteristics Common Across Brands Significant Lack of Use Among Blacks and Hispanics Children in Household Not a Strong as Suspected
  20. 20. Table 9-17: Top Demographic Characteristics of Business Card Users, 2009 Table 9-18: Top Demographic Characteristics of Visa Business Card Users, 2009 Table 9-19: Top Demographic Characteristics of MasterCard Business Card Users, 2009 Table 9-20: Top Demographic Characteristics of American Express Business Card Users, 2009Business Card User Top Work-Related Demographics Note on Data Individual Employment Income: High Earners Highly Likely Table 9-21a: Indices for Use of Selected Credit Card Classifications, by Individual Employment Income, 2009 (U.S. adults) Table 9-21b: Total Number of Users for Selected Credit Card Classifications, by Individual Employment Income, 2009 (in thousands of U.S. adults) Table 9-21c: Penetration Levels for Selected Credit Card Classifications, by Individual Employment Income, 2009 (% of U.S. adults) Employed Adults in Household: Two Most Likely Table 9-22a: Indices for Use of Selected Credit Card Classifications, by Number of Employed Adults in Household, 2009 (U.S. adults) 197 Table 9-22b: Total Number of Users for Selected Credit Card Classifications, by Employed Adults in Household, 2009 (in thousands of U.S. adults) Table 9-22c: Penetration Levels for Selected Credit Card Classifications, by Employed Adults in Household, 2009 (% of U.S. adults) Employment Status: Part-time Workers Less Likely Table 9-23a: Indices for Use of Selected Credit Card Classifications, by Employment Status, 2009 (U.S. adults) Table 9-23b: Total Number of Users for Selected Credit Card Classifications, by Employment Status, 2009 (in thousands of U.S. adults) Table 9-23c: Penetration Levels for Selected Credit Card Classifications, by Employment Status, 2009 (% of U.S. adults) Hours Work Weekly Table 9-24a: Indices for Use of Selected Credit Card Classifications, by Hours Work Weekly, 2009 (U.S. adults)
  21. 21. Table 9-24b: Total Number of Users for Selected Credit Card Classifications, byHours Work Weekly, 2009 (in thousands of U.S. adults)Table 9-24c: Penetration Levels for Selected Credit Card Classifications, byHours Work Weekly, 2009 (% of U.S. adults)Employed by Others/Self-Employed: Self-Employed Pre-disposed to UseTable 9-25a: Indices for Use of Selected Credit Card Classifications, Employedby Others versus Self-Employed, 2009 (U.S. adults)Table 9-25b: Total Number of Users for Selected Credit Card Classifications,Employed by Others versus Self-Employed, 2009 (in thousands of U.S. adults)Table 9-25c: Penetration Levels for Selected Credit Card Classifications,Employed by Others versus Self-Employed, 2009 (% of U.S. adults)Length at Present Job: Long-Term Employees are Larger Share of Card HoldersTable 9-26a: Indices for Use of Selected Credit Card Classifications, by Length ofService at Present Job, 2009 (U.S. adults)Table 9-26b: Total Number of Users for Selected Credit Card Classifications, byLength of Service at Present Job, 2009 (in thousands of U.S. adults)Table 9-26c: Penetration Levels for Selected Credit Card Classifications, byLength of Service at Present Job, 2009 (% of U.S. adults)Type of Industry: Professional/Scientific/Technological Employees More Likely tobe Card UsersTable 9-27a: Indices for Use of Selected Credit Card Classifications, by Type ofIndustry, 2009 (U.S. adults)Table 9-27b: Total Number of Users for Selected Credit Card Classifications, byType of Industry, 2009 (in thousands of U.S. adults)Occupation: White Collar DominatesTable 9-28a: Indices for Use of Selected Credit Card Classifications, byOccupation, 2009 (U.S. adults)Table 9-28b: Total Number of Users for Selected Credit Card Classifications, byOccupation, 2009 (in thousands of U.S. adults)Table 9-28c: Penetration Levels for Selected Credit Card Classifications, byOccupation, 2009 (% of U.S. adults)Job Title: Top Managers Highest Penetration but Owners/Partners AboveAverage Users
  22. 22. Table 9-29a: Indices for Use of Selected Credit Card Classifications, by Job Title,2009 (U.S. adults)Table 9-29b: Total Number of Users for Selected Credit Card Classifications, byJob Title, 2009 (in thousands of U.S. adults)Table 9-29c: Penetration Levels for Selected Credit Card Classifications, by JobTitle, 2009 (% of U.S. adults)Company Size: Smaller Sees Greater PenetrationTable 9-30a: Indices for Use of Selected Credit Card Classifications, byCompany Size, 2009 (U.S. adults)Table 9-30b: Total Number of Users for Selected Credit Card Classifications, byCompany Size, 2009 (in thousands of U.S. adults)Table 9-30c: Penetration Levels for Selected Credit Card Classifications, byCompany Size, 2009 (% of U.S. adults)Business Purchasing Involvement: Dramatically High Across BrandsTable 9-31a: Indices for Use of Selected Credit Card Classifications, by Level ofPurchasing Involvement in Last 12 Months, 2009 (U.S. adults)Table 9-31b: Total Number of Users for Selected Credit Card Classifications, byLevel of Purchasing Involvement in Last 12 Months, 2009 (in thousands of U.S.adults)Table 9-31c: Penetration Levels for Selected Credit Card Classifications, byLevel of Purchasing Involvement in Last 12 Months, 2009 (% of U.S. adults)Business Purchasing Area of Spend in Last 12 Months: Laptop/DesktopWorkstations Are the Top Purchases Among Business CardholdersTable 9-32a: Indices for Use of Selected Credit Card Classifications, by PersonalInvolvement in Select Areas of Spend in the Past 12 Months, 2009 (U.S. adults)Table 9-32b: Total Number of Users for Selected Credit Card Classifications, byPersonal Involvement in Select Areas of Spend in the Past 12 Months, 2009 (inthousands of U.S. adults)Table 9-32c: Penetration Levels for Selected Credit Card Classifications, byPersonal Involvement in Select Areas of Spend in the Past 12 Months, 2009 (%of U.S. adults)Employed by Others: CategoriesTable 9-33a: Indices for Use of Selected Credit Card Classifications, byEmployed by Others: Categories, 2009 (U.S. adults)
  23. 23. Table 9-33b: Total Number of Users for Selected Credit Card Classifications, by Employed by Others: Categories, 2009 (in thousands of U.S. adults) Table 9-33c: Penetration Levels for Selected Credit Card Classifications, by Employed by Others: Categories, 2009 (% of U.S. adults)Business Purchasing Trends by Card Type Business Purchasing Involvement Table 9-34a: Indices for Use of Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (U.S. adults) Table 9-34b: Total Number of Users for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (in thousands of U.S. adults) Table 9-34c: Penetration Levels for Selected Credit Card Classifications, by Level of Purchasing Involvement in Last 12 Months, 2009 (% of U.S. adults) Laptop/Desktop Workstations Are the Top Purchases Among Business Cardholders Table 9-35a: Indices for Use of Selected Credit Card Classifications, by Personal Involvement in Select Business Purchasing Categories in the Past 12 Months, 2009 (U.S. adults) Table 9-35b: Total Number of Users for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (in thousands of U.S. adults) Table 9-35c: Penetration Levels for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (% of U.S. adults) Company Size: Smaller See Greater Penetration Table 9-36a: Indices for Use of Selected Credit Card Classifications, Hours Work Weekly, 2009 (U.S. adults) Table 9-36b: Total Number of Users for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (in thousands of U.S. adults) Table 9-36c: Penetration Levels for Selected Credit Card Classifications, by Hours Work Weekly, 2009 (% of U.S. adults)Appendix: Addresses Commercial Card Networks Commercial Card Issuers
  24. 24. Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1928139  US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004 

×