Growing Emphasis on Transportation and Logistics to Drive the Demand for Fuel Cards in Europe

A fuel card is a prepaid card that enables drivers to make payments for expenses related to a vehicle including fuel filling, vehicle servicing, maintenance, and others for business purposes.

Fleet card volume accounted 48% of fuel card volumes from five emerging European countries (France, Germany, Italy, Spain, and the U.K.) alone in 2020. Fuel card volumes are expected to surge exponentially by 11.1% in Germany from 2020 to 2024. Some of the leading fuel card operators such as Cepsa, Repsol, and Galp made up 84.9% of fuel card volumes in Spain in 2020. However, the security concerns in fuel cards compared to other alternatives might hinder its demand in Europe.

Conversely, the surging prepaid and contactless card industry is expected to raise the demand for fuel cards in the upcoming years. The significant surge in the popularity of payment digitization coupled with the growing emphasis on fuel cards in the logistics and transportation industries across the globe is expected to increase the demand for fuel cards in Europe in the coming years.  Furthermore, persistent technological advancements in the fuel card coupled with the perks and conveniency it brings are expected to create tremendous opportunities for the growth of the fuel card market in Europe. The Europe fuel card market is expected to reach $374,592 million by 2025, registering a CAGR of 5.0% from 2018 to 2025.

More and more companies across the globe are devising innovative strategies to spread the cost of their expenses and save more money so as to make the weekly, monthly, and annual cash flow more trackable and manageable than before. Numerous fleet managers across the globe are becoming increasingly aware about the perks of using business fuel cards. Operating fleets need convenient organization and coherency, and hence, fuels cards come out here as an effective component, facilitating seamless management of those requirements.

Fuel cards provide comprehensive reporting for the fleet of corporates. Thus, they are capable of tracking the expenses of these fleets in real-time. Furthermore, the implementation of fuel cards obliterates manual operations including auditing and submitting receipts, enabling the corporate to take full advantage of discounted fuel price offers.

Fuel card comes out as a quick and seamless method for employees to pay for fuel, especially when they have deadlines to meet or places to be. The do not have to wait in endless checkout queues for VAT receipts, and thus the drivers can simply pay at the pump using a fuel card and get back on their route without hassling about the payment method. Implementation of fuel cards can also help to exempt any sort of fraudulent transactions where expenses from these cards are not necessarily used for business purposes by fleet drivers. Thus, companies can efficiently track and manage their expenses by using a fuel card.

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