Our Commercial Payments practice area is focused on serving the commercial payment needs of our clients. Our clients include many of the world’s leading financial institutions, commercial card issuers, payment networks, retailers, large corporates, and B2B payment technology specialists. We have expertise in general purpose commercial payment products (e.g., corporate travel, purchasing, small business, fleet), private label commercial payment products (invoice-based billing, balance forward net pay, revolving, fleet), and online B2B payment solutions.
Client Profile
Our commercial payments clients include many of the leading financial institutions, commercial card issuers, payment networks, retailers, large corporates, and B2B payment technology specialists. Their commercial payment programs encompass general purpose commercial payment products (e.g., corporate travel, purchasing, small business, fleet), private label commercial payment products (invoice-based billing, balance forward net pay, revolving, fleet), and online B2B payment solutions. As indicated below, our clients’ businesses span segments, channels, and geographical regions:
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Product & Program Expertise
We have extensive knowledge of commercial payment programs. Over the course of 20 years, we have advised clients at both a strategic and tactical level on a range of product and program matters. Our product-related capabilities are listed below.
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Project Highlights
Each year, we complete over 40 commercial payments-related client assignments. Selected examples of the type and scope of assignments we complete include:
Market Coverage
- Engaged by all of the major commercial card payments networks on varied assignments.
- Engaged by eight of the top-12 global commercial card issuers on varied assignments.
Market Entry and Growth Opportunities
- Engaged to assist a client in entering the U.S. commercial card market, including market landscape, potential program delivery models, and NPV performance modeling.
- Engaged by a top-20 U.S. bank to re-launch their commercial charge card program. Evaluated several re-launch options, built a detailed monthly financial forecast model, drafted and conducted a term sheet process for a full-service outsource partner, and assisted in negotiating a partner arrangement.
- Worked closely with a Midwestern bank to analyze the U.S. commercial card market; to conduct an RFP for a data processing provider; to build a rebate pricing model; to benchmark online solutions; and to benchmark typical end-user organization client contract terms & conditions.
- Evaluated opportunities in the travel spend value chain for a leading corporate card issuer.
- Identified growth opportunities for corporate card and p-card for a leading U.K. bank.
Market Research
- Developed a future strategy roadmap for a card network’s online corporate card functionality via primary research findings from multinational corporations.
- Evaluated commercial card opportunity across several markets, including multiple Latin American countries, Russia, and India.
- Completed extensive research on AP practices and commercial card opportunities for a selected vertical.
- Completed a gap analysis of a fleet provider’s solution against its competitors.
Commercial Card Program Reviews
- Engaged by several banks to review commercial card product, pricing, sales, organizational alignment, commercial banker engagement, TSO engagement, underwriting process, card administrator service, and cardholder service to identify opportunities to improve growth potential.
- Engaged by a mid-sized U.S. commercial card issuer to research and benchmark marketing, product, pricing, penetration, commercial bank engagement, and variations seen across end-user organization industry verticals.
- Worked with a top-20 U.S. bank to develop strategic recommendations to promote growth for its small business credit card program, including product and pricing benchmarking, benchmarking of CARD Act versus non-CARD Act compliant small business card programs, and an account-level APR and fee pricing rationalization.
- Performed a small business charge card program diagnostic across marketing, product, underwriting process, and other key operational areas for two leading European banks.
- Completed a fair market value appraisal of a fleet card program for a major oil.
Best Practices
- Online Reporting Solutions: Benchmarked third-party online commercial card tools for a leading North American commercial card issuer considering an outsourcing.
- Rebate Pricing: Worked with several clients to develop or refine rebate pricing models.
- Branch Channel: Identified best practices for promoting business credit and business debit at the branch.
- Customer Interaction: Analyzed the relative importance of various small business card customer touch points.
- Underwriting: Identified best practices in general purpose business card underwriting at the point of sale.
Conducted RFPs for:
- a major oil’s aviation card.
- two oil marketers’ fleet card programs.
- an office supply company’s private label commercial account program.
- a multinational’s corporate and p-card program.
- a home improvement company’s co-branded small business card program.
- a leading super-regional bank’s self-issued corporate and p-card program relaunch.
- a truck manufacturer's MasterCard fleet card and corporate card program.
- a top-five Canadian financial institution's corporate and p-card program.
- a super-regional bank’s small business credit card program.
Insights
As payments relationships become increasingly associated with client loyalty, commercial cards have comprised a profitable set of products within payments and have delivered consistent growth in almost every year except a recessionary decline in 2009. While competition for commercial card programs with multinationals, large corporates, and public sector organizations is fierce, substantial growth opportunity still exists from these clients from continued migration to electronic payments. In addition, many mid-sized organizations are still utilizing personal cards or commercial cards to a very limited degree with vast potential for more formalized and structured corporate travel, purchasing, and one card programs. Meanwhile, small business credit is making a comeback via substantially lower credit risk post-recession; and many banks have launched small business charge cards to help bridge gaps between micro businesses and more established mid-market organizations.
Questions any commercial card provider or end-user organization may ask include:
- In which geographies, verticals, and segments can I find significant future growth potential for commercial cards?
- Has growth potential been fully achieved for my existing commercial card programs? Where should I focus to obtain further profitable commercial card growth?
- Are my online reporting solutions, card products, and KPIs competitive to market? Which levers should I pull to enhance my program?
- Am I organized optimally for commercial cards. In which areas am I understaffed or need to improve focus to assist me in generating more profitable growth?
- How will mobile impact commercial cards and my program? Where should I focus / place bets?
First Annapolis, through experience with over 40 commercial card client engagements each year can assist in identifying the right questions to ask and in developing a robust set of answers, recommendations, strategic roadmaps, and near-term tactical execution steps.
Leadership
Our Commercial Payments team draws on a pool of professionals with years of experience. Each team member has both strategic and tactical expertise with commercial payment products. The team is lead by Frank Martien, who has specialized in consumer and commercial payments at First Annapolis for over 15 years.
For more information on our Commercial Payments leadership team, please reference their biographies:
