Commercial cards can be in the form of credit cards, debit cards, and prepaid cards. Although credit cards remain more popular, debit cards have started increasing in importance as SME’s and other businesses find it harder to access credit.

Debit cards are trending as Europe has fully embraced them. The latest data from Payments Cards and Mobile shows that around seven out of ten cards that are issued in Europe are now debit cards. This is due to companies and consumers continuing to affirm flexibility and ease of debit payments.

Growing popularity of debit cards

There has been a slowing in the growth of debit cards in Europe over the last 20 years with some markets experiencing saturation. However, Europe’s debit card base still rose by an impressive 42.7 million cards in 2021 for a total of 813.5 million or a 5.55  per cent increase.

The almost complete dominance of debit in Europe is chiefly due to the standard banking relationship of a current account and card markets. Furthermore, ATM and cheque guarantee cards have evolved into debit cards

Why has there been a shift to debit cards as a payment method?

The COVID-19 pandemic has undoubtedly led to a considerable acceleration in the move away from cash to electronic payments. Debit cards have been the winner of this trend.

Companies and individuals are increasingly looking to debit cards for their smaller transactions as well as internet spending. The number of transactions in this sector has grown considerably in both online as well as offline environments.

There has also been a shift from credit to debit cards. This trend is linked to the move away from cash as well as a need to reduce short term credit due to recent economic turmoil and uncertainty.

The advantages of using commercial cards in companies

As businesses scale and expand, employees will increasingly need rapid and fast access to funds. This could be for various purposes such as purchasing services and materials, settling pending bills quickly, and other similar requirements.

Empowering employees with commercial cards puts less pressure on the finance department to execute quickly in urgent situations.

When cards are issued to selected employees, these cards provide a very convenient tool to pay costs immediately whilst automatically keeping a digital record of the transaction. Employees are responsible for spending on their card, which can either be a physical card or a virtual card accessible via a mobile app.

How FinXP comes in

At FinXP we offer a number of interesting payment and card solutions. One of our most sought after services is IBAN4U, a dedicated Euro IBAN Corporate Account that can be linked to multiple Debit Cards. These debit cards may be used as commercial cards, and for bulk amounts, these cards may also be branded with the client’s company brand.

The IBAN4U account is perfect for cross-border payments and it can be opened quite quickly, especially since no intermediary banks are involved.

If you have any queries or wish to be introduced to our services, please visit the FINXP website and get in touch via our contact form.

To stay up-to-date with our industry insights and company developments, please subscribe to our newsletter here.


The latest updates on the state of the private rental market in Malta

May 26, 2024
by BN Writer

There are now 17 localities with more than 1,000 active registered rental contracts

Embracing the evolution of the Maltese banking industry

May 24, 2024
by BN Writer

BNF Bank plc Chief Commercial Officer George Debono identifies key changes needed in the banking industry

Dow Jones @ 40,000

May 23, 2024
by BN Writer

The recent rally in the DJIA and the other major US benchmark indices has been fuelled by fresh data