Fintechs are Targeting the $4 Trillion Commercial Card Market

Financial technology firms are seeking to gain ground in the commercial card market by offering businesses cards they can use to fund growth strategies and meet day-to-day needs, outmaneuvering traditional credit card issuers.

A new report from American Banker serves as a warning to credit card issuers that they may lose market share if they don’t make adjustments to their commercial card strategies soon.

Spending on commercial cards reached $4 trillion for the first time in 2023, according to a new report from Datos Insights. And businesses are poised to boost their spending on commercial cards over the back half of the decade.

Thomas Newman, Manager, Market Data and Forecasting at Datos Insights, said in the company’s report that commercial cards have demonstrated they can grow under challenging economic circumstances.

“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,” Newman said. “With spending due to rise to over U.S. $6 trillion by 2029, the outlook remains positive.”

Spending on commercial cards may top $6 trillion before the end of the decade.

Banks that are having difficulties tapping into the growing commercial card space may have fintechs to blame for those struggles. According to the American Banker report, banks employ outdated technology that doesn’t compare with what fintechs can bring to the table.

“Their technology is built for today’s world,” Brian Muse-McKenney, Chief Revenue Officer at Episode Six, told American Banker in reference to fintechs. “It’s real-time, it’s embedded, and it’s hyper-personalized.”

Fintechs such as Ramp and Brex that offer credit cards to businesses often also extend a multitude of other products that can help companies efficiently manage their cash flow, such as accounts payable and expense management solutions.

Ramp secured additional funding earlier this year, and the company has set its sights on keying in on AI-driven features, according to American Banker. Ramp revealed in a post on its website that it had shipped 270 of those features during the first half of 2025 alone.

Credit card issuers that want to capture more business customers may want to consider promoting virtual card programs that appeal to companies in search of a low-cost alternative to physical cards.

Virtual credit cards can be a more cost-effective payment option for businesses than their physical counterparts.

Single-use virtual cards can also offer businesses tighter controls, allowing companies to set restrictions that specify the amount of money a merchant can process to receive payment. 

But issuers looking to gain a greater share of the commercial card market may want to keep tabs on fintechs to inform their growth strategies. 

American Express Chairman and CEO Steve Squeri offered insights into his company’s approach in the small business space during a session with analysts earlier this year.

“We feel good about the progress that we are making, and yes, we keep an eye on Ramp and Brex,” Squeri said. “They both have good products and are making some inroads, and we will make sure we are responding to that.”