Market Analysis for Virtual Cards
.docx
School
COMSATS Institute of Information Technology, Lahore**We aren't endorsed by this school
Course
A EN MISC
Subject
Economics
Date
Dec 21, 2024
Pages
7
Uploaded by CountValor14475
1Market Analysis for PivotEQ's Student NameCourse IDInstructor NameDate
2Table of ContentsIntroduction...........................................................................................................................................3Market Size and Opportunity.................................................................................................................3Virtual Cards and their Unique Proposition............................................................................................3Strategic Partnership with American Express.........................................................................................4Understanding Virtual Cards..................................................................................................................4Growth Research....................................................................................................................................4Importance of Employee Spend Management Services..........................................................................5Competitive Landscape..........................................................................................................................5Conclusion..............................................................................................................................................6References..............................................................................................................................................7
3IntroductionPivot Payables is an industry veteran with a ten-year history is setting out on a revolutionary pathwith Pivot 2.0. The ground-breaking software PivotEQ which aims to redefine financialoperations using virtual cards is at the vanguard of this movement. This thorough marketresearch explores the potential for virtual cards to expand as well as how they may revolutionizefinancial procedures (A2Z Market Research, 2022).Market Size and OpportunityPivot 2.0 has discerned a significant business potential in the domain of virtual cards. PivotEQ'slaunch is strategically in line with industry expectations with a market size anticipated to bebetween $10 and $20 billion. This opportunity emphasizes the possibility for large marketpenetration by addressing important pain points that finance executives confront (A2Z MarketResearch, 2022).Virtual Cards and their Unique PropositionVirtual cards reflect a major shift in the dynamics of commercial cards. PivotEQ offers a range ofbenefits to financial executives by using the distinctive characteristics of virtual cards. Theseprovide significant cost savings, strong expenditure restrictions, and increased operationalefficiency as compared to ordinary commercial credit cards. PivotEQ are positioned as anappealing option for companies looking for increased financial control because of its capacity tooffer point-of-sale controls based on merchant categories, names, effective date periods, andbudgetary restrictions (Galenianos & Gavazza, 2022).
4Strategic Partnership with American ExpressThe strategic alliance with American Express is a recent achievement for Pivot 2.0. PivotEQ isadvantageously positioned to facilitate spending on the American Express virtual card platformthanks to this partnership. This collaboration is significant because it follows market trends; overthe next few years, American Express expects spending on its commercial card products to triple.This collaboration acts as a spark, sending Pivot 2.0 on a hypergrowth trajectory.Understanding Virtual CardsEffective market analysis requires a fundamental grasp of buying cards, virtual cards, andcommercial cards. Virtual cards came into being as a result of purchasing cards that developedfrom commercial credit cards to solve concerns about profitability (Park, 2019). Financialexecutives looking for increased control and efficiency may find a tempting alternative in virtualcards, which apply buying card rules to individual purchases. With this basic information,program participants are prepared to carry out in-depth market research.Growth ResearchThe second crucial component of this market study is to forecast the increase of virtual card andUS commercial spending over the next three to five years. The information gathered in this stagewill be used to support PivotEQ's potential for rapid expansion. It is important to have anunderstanding of the business reasons underlying the rise in commercial card expenditure to fullycomprehend the dynamics of the industry (Scheidegger & Raghubir, 2022). The industry's risingtrend is highlighted by projected rise in US commercial expenditure which creates a favorableclimate for virtual card solutions. Moreover, the focus on virtual card spending forecasts drawsattention to PivotEQ's distinct value proposition in this expanding market. The goal of theresearch is to identify the primary drivers of this increase as well as to estimate the opportunity.
5Importance of Employee Spend Management ServicesAccurate accounting for purchases made using business credit cards is still a recurring problemin the sector. This market study milestone highlights how crucial employee expendituremanagement services are to meet this obstacle. These services are crucial to maintaining preciseaccounting procedures and thorough records, which are necessary for companies to accept andutilize commercial cards to their maximum potential. This section of the study will focus oncompletely qualified accounts that contain values for natural accounts, cost accounting, andbusiness activity. It will also explore the essential accounting procedures related to theacquisition of commercial cards (Scheidegger & Raghubir, 2022). Furthermore, realizing thereasons why accurate accounting is necessary for the use of commercial cards will provide youwith important insights into the obstacles and possibilities facing the industry (Zion MarketResearch, 2022). Leading employee expenditure management services such as SAP Concur willbe compared to highlight any present weaknesses in terms of satisfying the accounting anddocumentation standards of the sector.Competitive LandscapeA critical aspect of any market analysis involves assessing the competitive landscape. In thiscontext, Ramp emerges as a noteworthy competitor. Conducting a comprehensive SWOTanalysis for Ramp will provide insights into its strengths, weaknesses, opportunities, and threatsin comparison to PivotEQ. This analysis will enable Pivot 2.0 to strategically position itself byleveraging its competitive advantages and addressing potential vulnerabilities. UnderstandingRamp's strengths, such as an established customer base or technological advancements will guidePivot 2.0 in fortifying its value propositions. Identifying weaknesses or potential threats in thecompetitive landscape will inform strategic decisions and potential areas for differentiation
6(Galenianos & Gavazza, 2022). Moreover, recognizing opportunities within the market thatRamp may be capitalizing on will guide Pivot 2.0 in proactive strategy formulation.ConclusionFinally, this thorough market research identifies PivotEQ and Pivot 2.0 as key participants in theever-changing virtual card industry. A strong investment pitch is made possible by the strategicalliance with American Express as well as by insightful knowledge of virtual cards, growthforecasts, and the competitive environment. With its creative solutions, Pivot 2.0 is well-positioned to take advantage of the market potential and become a leader in the virtual cardrevolution of financial operations. Pivot 2.0 is prepared to handle the market's intricacies andsteer clear of obstacles on the way to sustained growth and industry leadership, thanks to athorough market study that serves as a solid basis.
7References A2Z Market Research, A. M. (2022, August 17). Virtual Credit Cards Market Scope and overview, To Develop with Increased Global Emphasis on Industrialization 2029 | MineralTree, Marqeta, Billtrust. Digital Journal. https://www.digitaljournal.com/pr/virtual-credit-cards-market-scope-and-overview-to-develop-with-increased-global-emphasis-on-industrialization-2029-mineraltree-marqeta-billtrustGalenianos, M., & Gavazza, A. (2022). Regulatory Interventions in Consumer Financial Markets: The Case of Credit Cards. Journal of the European Economic Association. https://doi.org/10.1093/jeea/jvac016Park. (2019). Virtuality Changes Consumer Preference: The Effect of Transaction Virtuality as Psychological Distance on Consumer Purchase Behavior. Sustainability, 11(23), 6618. https://doi.org/10.3390/su11236618Scheidegger, G., & Raghubir, P. (2022). Virtual currencies: different schemes and research opportunities. Marketing Letters. https://doi.org/10.1007/s11002-022-09620-zTrütsch, T. (2020). The impact of contactless payment on cash usage at an early stage of diffusion. Swiss Journal of Economics and Statistics, 156(1). https://doi.org/10.1186/s41937-020-00050-0Zion Market Research. (2022). Virtual Credit Card Market Size, Share, Growth, Demand Analysis, Trends to 2030. Zion Market Research. https://www.zionmarketresearch.com/report/virtual-credit-card-market