Commercial card adoption is transforming business payments globally, with spending exceeding US$4 trillion for the first time in 2023, reflecting growing business reliance on commercial cards for strategic expense management amid economic uncertainty. The findings come from Datos Insights’ latest Global Commercial Cards research, which reveals an 8% growth in total commercial card spending for the year.
T&E cards lead market growth as rising travel costs drive demand
T&E cards emerged as the fastest-growing segment in 2023, with spending surging 16% worldwide to outpace both SMB and B2B card growth. Growth was notably lower than the previous year in all three segments, as global conflicts and rising energy costs tempered the post-pandemic recovery.
Despite these headwinds, companies increasingly turned to T&E cards to track and control rising travel costs. The shift was most dramatic in emerging markets – for example India, where T&E spending more than doubled – as businesses embraced both corporate cards and lodge payment solutions. Key European markets including Ireland have now pushed past pre-pandemic spending levels, though the research reveals that the widespread adoption of video conferencing continues to reshape business travel patterns across all regions.
Economic and regulatory forces reshape SMB card adoption
Commercial card adoption among small and medium businesses continued to expand globally, driven by fintech innovation in reporting capabilities. The segment recorded 6% growth despite challenging conditions, with credit cards showing stronger growth than debit and prepaid alternatives as businesses managed rising operational costs. This was particularly pronounced in markets experiencing high inflation rates, such as in Argentina, where SMB credit spending grew by almost 50% while SMB debit spending declined by around 10%.
Global Commercial Cards highlights how regulatory frameworks can override economic trends, as demonstrated in Turkey where lending restrictions pushed businesses toward SMB debit cards rather than credit products, despite inflationary pressures that typically favour credit usage.
SMB spending, while remaining the largest commercial card segment, showed mixed performance globally. Overall growth reached 6%, tempered by declining volumes in China where businesses faced a triple challenge of supply chain disruptions, stricter regulations, and escalating operating costs.
Virtual cards drive global B2B payment transformation
B2B card spending achieved 9% global growth, despite slower activity in the US market, which accounts for around three quarters of global B2B spending. Growth outside the USA showed particular strength as businesses increasingly replace credit transfers and cheques with cards to better monitor payments to suppliers. Global Commercial Cards found that virtual cards are a key enabler of this trend, offering seamless integration with payments software.
Thomas Newman, who led the Global Commercial Cards research, commented: ‘Commercial cards have demonstrated their resilience by continuing to grow in difficult economic conditions. The increasing integration of expense tracking functions into card products has given them a competitive advantage over alternative payment methods by making them a useful tool for businesses looking to control spending. With spending due to rise to over US$ 6 trillion by 2029, the outlook remains positive.’
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