In the commercial payments market, Fintechs are solving the problems they face themselves


Rockville, Md., January 19, 2022 /PRNewswire/ — Fintechs are using several services to grow the trading card pie, but one in particular stands out, according to the recent publication of Packaged Facts Commercial Payment Cards: US Market Trends, 12and Editing report (January 2022).

Even though small businesses account for more than 35% of total US commercial card spend, some businesses are too small or new to traditional commercial cards. This is especially difficult for issuers if the entrepreneur is too young to have a strong personal credit history from which to make an approval decision to open a line of credit.

Fintechs are responding to this challenge by providing short-term credit to new businesses so they can make purchases using a plastic card or virtual card and pay their issuers every day there are costs. Fintechs monitor these payment behaviors and then use actual card data to ultimately offer a longer-term line of credit to their customers.

This allows the fintech to earn 100% of the organization’s share of wallet with little credit exposure, says Packaged Facts financial analyst Elizabeth Rowe. If, or when, the new business grows, fintech cards scale with the cardholder’s operation and are now fully integrated into their payment process.

This type of targeted offering is only possible through the confluence of technological prowess, innovative thinking and evolving consumer receptivity. When micro businesses learn that Uber drivers are paid at the end of each shift, the notion of daily payments is introduced, and an issuer can exploit this receptivity without the big dollar boost of explanatory and persuasive marketing.

For the commercial card industry, this exemplifies the use of consumers’ personal experience to develop new business service options.

In other words, the staff is commercial. Every person working for a card issuer or network was young and new to the world of unsecured credit. This person may have been told to open a store credit card to build up a credit history. Perhaps this person has received other advice. But the truth is that a young business owner faces the same challenges as a transmitter or network employee as a consumer.

The opportunity, reports Packaged Facts, is to combine personnel with new application technology to bring new solutions to the commercial market.

About Packed Facts

Packaged Facts, a division of, publishes business intelligence on a wide range of consumer market topics, including consumer demographics and buyer information, food and beverage market, products and consumer financial services, consumer goods and retail, pet products and services. Packaged Facts also offers a full suite of custom research services. The reports can be purchased from our company’s website and are also available through

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SOURCE Packed Facts


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