American Express has been the market leader in providing cards to small businesses, but VISA is moving up fast.
A 1999 survey by the PSI Global Commercial Services Research Program (CSRP) indicates that American Express has 22% of the small-business commercial card market, VISA has 20% and MasterCard has 13%. In 1998, VISA had only 11% of the market, and MasterCard only 10%.
The CSRP study is based on telephone interviews with 900 companies with sales between $500,000 and $10 million. A few of the results of the study were:
–Forty-nine percent of all small businesses in this category are using some type of business credit card, up from 37% in 1998.
–In spite of the fact that the number of companies using business cards has steadily increased, total card billing has remained relatively unchanged.
–The average small business spends about $10,000 each year on a business card.
–The average small business revolves about $2,000 monthly.
–Twenty percent of small businesses are making purchases online.
PSI provides a great deal of information on whats happening in business today on their Web site www.psi-global-nfo.com.
VISA is aggressively promoting itself as the payment vehicle of choice on the Internet, so dont be surprised if those market share percentages change.