Mexico to be Major Growth Market for Corporate Cards

Mexico Expected to be a Major Growth Market for Corporate Cards

Commercial Payments International reports on the growth of Corporate Cards in Mexico:

Until recently corporate cards in Mexico were limited mainly to senior executives of very large companies. Several changes in this market have occurred recently indication that the Mexican corporate card market is poised for rapid growth:

• Increasing numbers of mid-sized corporates and SMEs have begun to use some type of corporate payment cards
• Petrol stations only recently began to accept cards for payment
• The increased desire for visibility into corporate spend
• The introduction of prepaid cards which have been successful as salary cards in a market with a large unbanked population.

Currently only four banks and American Express issue corporate cards in Mexico. In early 2008 Citibank, one of the leading global issuers of corporate cards, announced its plans to introduce new corporate card services in Mexico which will improve procurement process efficiency. Through its subsidiary Banamex, Citi already has over 150 corporate clients and have experienced a CAGR of 102% since 1999 indicating the significant opportunity in the market.

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