HSBC UK data has revealed that contactless transactions by its customers on commercial credit cards rose by almost a quarter (24%) last year, compared to 2018.
The number of transactions across all of HSBC UK’s commercial credit cards, business debit cards and corporate cards was also up by almost 20% during the same time span.
The data revealed that top merchants for commercial credit card spending were petrol stations, hotels and building supplies stores as businesses increasingly use cards for expenses and day-to-day spending.
In contrast, cash advances on commercial credit cards reduced by 14% in 2019 with just 91,043 cash advance transactions compared to 106,298 the previous year.
HSBC began offering cards to businesses in 1994 and the commercial credit card was introduced in 2006 to meet demands from firms looking for a more modern way to manage small transactions.
“We’re increasingly seeing customers choose card solutions over cash as they look to manage their businesses more efficiently and more securely,” said Tom Wood, head of Global Liquidity and Cash Management at HSBC UK. “Contactless transactions are up and the data shows that we’re increasingly seeing businesses use cards for their day-to-day travel expenses - likely because card transactions are far easier to keep track of than petty cash.”
Coinciding with the research, HSBC UK has launched a new cashback offer to existing or new customers who take out a commercial credit card from now until 30 April. Any businesses taking out the new commercial credit cards (subject to credit application) will have until 30 June to make 10 transactions which will result in £15 cashback paid onto their balance by the end of August. Businesses taking out multiple cards for employees will receive cashback for each card, as long as ten transactions are made on each by the end of June.
Like this item? Get our Weekly Update newsletter. Subscribe today