Breaking new ground, blazing new trails: every pioneer is first and foremost a great traveller. With this in mind, the world of business travel has, in its own way, been a trailblazer, particularly in the area of payment methods. Without going back to the origins of money, the appearance of the credit card over 60 years ago demonstrates this driving role. At that time, the American businessman Frank McNamara Diners Club, the first credit card designed for frequent travellers who, like him, needed a simple and efficient way to pay their hotel or restaurant bills. American Expresswhich has specialised in financial services for travellers almost since its beginnings in the mid-19th century, is following suit. And then Visaand then Mastercard... And so it is that this small, almost minimalist piece of plastic has gradually become everyone's means of payment.
"For business travellers, a credit card will always be essential. It enables them to pay for taxis and restaurants, withdraw cash for small expenses or deal with unforeseen circumstances when travelling."says Laurent Sautré, Head of Corporate Card Sales at BNP Paribas. All the major banks - BNP Paribas but also Bank of America Merryl Linch, CIC Crédit Mutuel, Citibank, Société Générale - and of course American Express and Diners Club offer companies their panels of corporate cardsranging from the most classic to the most formal, combined with VIP services like Gold or Platinum. "In both the United States and the United Kingdom, corporate cards are extremely widespread among companies"says Melissa Gargagliano, head of commercial cards at Bank of America Merrill Lynch Global Transaction Services (GTS) for Europe, the Middle East and Africa.
A lengthy process
The fact remains, however, that for many observers of the sector, the corporate card is not a panacea. Firstly, because it involves a lengthy process of expense report managementbut also because it only brings back basic information in the management tools. In other words, the amount, the date of the transaction and the name of the supplier recorded in the point-of-sale terminal.
As a result, large companies have played a major role in developing sophisticated solutions for centralising travel expenditure. These solutions are proving so effective that they are beginning to go beyond the simple framework of business travel, as in the case of the log-in card, the best way to pay for airline tickets. "Thanks to our years of experience in optimising travel expenditure, we are opening up our solutions to other purchasing families, such as overheads. Even more strategically, we are starting to connect them to companies' key suppliers, those who have a direct impact on their production. As well as streamlining transactions, this enables them to manage their cash flow more effectively by offering them longer payment terms."explains Solène Genton, Marketing Director for France and the Netherlands at American Express Cartes et Solutions Corporate.
La card houseddirectly integrated into travel agents' booking tools, is still and always will be the best way to book your trip. the cornerstone of any system for optimising travel expenditure. It is offered by American Express, Citi, AirPlus and BNP Paribas, as well as by the travel agency HRG which has just launched its solution in partnership with Visa. In addition to the airlines, it has been accepted by a growing number of players, including car rental companies and hotel reservation centres, with new entrants to the market expected in the near future. "Today, we are in contact with new entrants of interest to our customers"says Nicole Flory. American Express is also working to enhance its accommodation card co-branded with Air France-KLM by integrating a medical insurance/assistance which covers all employees whose travel has been paid for by this method. "This helps to reassure companies that have a social responsibility towards travellers."says Solène Genton.
A wealth of detail
But above all, the card guarantees that payments are duly entered into management tools. In fact, unlike the data from credit card payments, the stored value card provides a wealth of details that will enable a more accurate analysis of payments. optimal reporting. "The data from the card is level 3, i.e. it is an exact reflection of the invoice, including taxes, the number of nights or the class of car hired. The travel manager can sort all this data by sector, by hotel group and by establishment in the accommodation sector, by airline and by class of travel in the air transport sector, and even highlight air taxes, an increasingly sought-after option"explains Nicole Flory. Figures and more figures that travel policy managers will have plenty of time to sort out by airline or hotel group, by booking class or room type... Which contributes to both better define travel policy and give weight to negotiations with suppliers.
However, what works very well for large volumes of expenditure with a limited number of suppliers is not suitable for all types of expense. This is particularly true of low-cost airlinesThis is a very important area, but one that remains rather vague because of the multitude of players involved. This explains thethe recent rise of the virtual cardA solution born of the same twofold desire that led to the introduction of the embedded card: simplify the booking process and ensure good visibility of payments made.
In practice, the virtual card works like a hosted cardIt can be integrated automatically into corporate booking channels, and the debit is made to the company's account. But it is also similar to a "classic" credit card by enabling online transactions to be completed by generating a virtual 16-digit number on demand, via a secure platform. And just like a credit card, it allows a upstream controlsince it is possible to set expenditure ceilings or to limit the use of the card over time. "Ultimately, this data is integrated directly into the company's ERP system and can be enriched by"says Nicole Flory.
Launched in 2009 by American Express with its solution VpaymentThe formula has been emulated. Last year, AirPlus has launched its AIDA card in Franceaffiliated to the Mastercard network. For its part, Bank of America Merrill Lynch has made its BofAML Travel Probacked by the MasterCard network. "In this way, transactions are integrated into travel agency solutions and expenditure is quickly fed back into the reporting system.explains Caroline Johnson-Jones, Commercial Cards Product Manager for Europe, Africa and the Middle East at Bank of America Merrill Lynch GTS. Travel Pro also allows payments in seven different currencies." BNP Paribaswhich also launched its Visa virtual card in 2014, will be extending its horizons to currencies other than the euro, namely the pound sterling, the dollar and the Swiss franc.
Virtuality in good order
With the aim of centralising scattered accommodation expenditure, the hotel reservation centres do not take a dim view of this development, quite the contrary. The German specialist Last year, HRS signed a partnership agreement with AirPlus to enable the use of the AIDA virtual card. This adds another string to HRS's bow, since until now, unlike its competitors Hcorpo, CDS and iAlbatros, HRS had no prepayment solutions. Travellers booked through the online platform, but paid their hotel bills with their corporate card. To extend its offer, HRS to integrate American Express' vPayment solution.
The virtual card is also making a strong entry into the world of travel agencies throughagreements with the GDSthe booking platforms used by all agencies. In recent months, AirPlus has formed a partnership with Amadeus which authorises payments via the virtual card directly from the GDSs. "This means that travel agencies can pay directly for hotel services on behalf of their customers. Agencies are very keen to use this solution"says Nicole Flory. Similarly, Travelport has teamed up with virtual payment specialist eNett to offer a solution that is accepted by the MasterCard network. For their part, Carlson Wagonlit and Traveldoo have gone in the opposite direction by teaming up with Conferma, one of the leading specialists in virtual card number issuing technology. As a result, their booking tools are open to the various solutions available on the market.
A pioneer in virtual cards, American Express is now extending this offer by developing a "fake" corporate card, both virtual and individual. "This is a sort of individual account, with one card number per traveller registered with the travel agency. The amount of expenditure can be defined in advance and its use limited in time, to a month, half-year or a year for example, explains Solène Genton. It makes it possible to equip less frequent travellers without giving them a physical card in their hands.".
One-off solutions
This development highlights the desire of companies to find solutions for all their employees who are not eligible for the corporate card. Executives who only carry out one-off assignments, temporary workers, technicians, external consultants: all these travellers nonetheless have needs like everyone else, and now have access to prepaid cards. Physical cards this time, which the company can load in advance according to the estimated volume of expenditure for the mission, 500 or 1000 euros for example.
Among the banks positioning themselves in this area are Bank of America and Citibank, as well as BNP Paribas, which will be launching a Visa prepaid card in the second half of the year. "It can be recharged over the Internet, with or without a name, and is valid for three years," explains Laurent Sautré. This will make it possible to integrate the expenses of these occasional travellers into the management tools, with, for example, centralised payment for transport thanks to the integrated card and a prepaid card for all other expenses."
Better visibility
With its solution Ticket Travel ProEdenred is beginning to carve out a place for itself in the corporate payment market. The world leader in prepaid services for companies - including the emblematic Ticket Restaurant - is taking an interest in global mobility through a three-in-one offer. The Ticket Travel Pro solution starts with a travel account opened by the company, to which prepaid payment cards affiliated to the Mastercard network will be linked. "They can be reloaded manually or automatically according to the rules defined by the company, says Yan Morteux, Managing Director of Business Expenses at Edenred France. They can be configured to be used over a specific period - Monday to Friday only or including weekends - or according to the type of expense, such as hotels, restaurants or petrol...". Yan Morteux sees a clear advantage to this solution: "With this system, the finance department determines a budget line for travel expenses, with a closed envelope that allows forclear visibility in real time of what is going to be spent."
Edenred has also added two options to its solution. reporting by passenger or by mission with a simplified expense management platform, and the other is focused on reservations. The prepaid services specialist has selected a group of partners to build a booking space accessible online or via tablets and smartphones: La Fourchette for restaurants, HCorpo for hotels, Capitaine Train for rail travel, Go Voyages for air travel and Europcar for car hire. "What they all have in common is a wide range of products and services, attractive prices and the ability to provide detailed reporting on expenditure."explains Yan Morteux. Rather than large multinationals, Ticket Travel Pro is primarily aimed at small and medium-sized enterprises "for whom the cost of self-booking tools is too high, underlines Yan Mortreux. These companies have few large expenses, but lots of small ones. A little, a little more, a little more: all this added up to billions of euros that are out of control."
Whereas the major multinationals have an extensive arsenal of solutions at their disposal, SMEs are becoming the new focus for corporate payment players. For example, BNP Paribas and AirPlus are each launching a packaged card aimed at medium-sized businesses.
In a different vein, but still aimed at these smaller companies, American Express is developing its Corporate Membership Reward loyalty programme linked to a company account. "The company is free to equip travellers, buyers or their assistants with corporate cards."says Solène Genton. Their spending is added to the company's loyalty points counter. A single decision-maker is empowered to decide how the points are to be converted, through a catalogue ranging from car hire to business gifts and training days. But it can also take the form of a credit on the next monthly statement.
"Our target is the mid-market, who don't always spend enough with Air France to appreciate the advantages of our co-branded card. This solution enables them to make the most of their spending"she adds. Whether they are powerful or miserly, payment cards will serve businesses in black and white.
Definition
The log-in card explained... to dummies
For many people, the definition of a "carte logée" is still very abstract. To explain it more trivially, let's take the example of a customer who has a habit of going to the bistro near his home. The customer, always short of change, agrees with the waiter to pay for his drinks, not each time as is customary, but on a weekly or monthly basis. The owner of the establishment doesn't take too kindly to this arrangement, as long as he's sure he'll get paid. The waiter offered to act as a go-between, paying for the drinks out of his own pocket. The customer, happy with the system, pays this advance in the form of a small percentage of the final bill.
But, without appearing to do so, the customer keeps very careful track of his accounts. As a result, the waiter undertakes to provide him with a very detailed summary, day by day, almost hour by hour, of all his orders. At 9am a coffee, at 7pm a thirst-quenching beer, then a bottle of good Burgundy to share with his friendly table neighbours, and so on. So much for the general principle. Now all you have to do is replace the customer by the company, the waiter by the payment company - AirPlus, Amex and so on - and the barman by one or other of the airlines... and the lodged card suddenly takes on a whole new light!
Changes to interchange fees: consequences still unclear
Over the last ten years or so, companies have chosen to empower But will a recent decision by the European Union call this habit into question? EU countries will soon be limiting the commission rate from 1.51% to 0.3% for corporate payment cards debited from travellers' personal accounts. In any case, those that operate on a "four-point" system. This is the model used by the Visa and MasterCard networks, which act as a link between the cardholder's bank, the cardholder, the merchant and the merchant's bank during a payment transaction.
On the other hand, three-party systems such as American Express or Diners Club, which organise a three-way relationship with the merchant and the cardholder, are not subject to these new regulations, as they operate on the basis of merchant fees rather than interchange fees. What will be the consequences of this upheaval? Will issuers raise card prices? A shift towards cards debited from business accounts, since this model is not subject to the reduction? Everything is still unclear, even if this last solution seems relatively unlikely. But one thing is certain, all this can only encourage the search for increasingly automated and centralised solutions.
