San Francisco, United States
Visa Commercial has released the global Commercial Consumption Expenditure (CCE) measurement for 2006 that shows steady growth in business and government spending worldwide.
Using the CCE index, a standardized metric to track business and government spending globally, Visa Commercial calculates global CCE in 2006 to be US$66.7 trillion, which represents an increase of 8.0 percent over 2005 expenditures of US $61.8 trillion.
The CCE index provides the global payment industry, including Visa and its member financial institutions, an unbiased and consistent way to monitor global business expenditures. The Visa CCE index includes all commercial spending with the exception of payroll and other select expenditures.
"Since its inception by Visa Commercial more than three years ago, the global Commercial Consumption Expenditure index has become the de facto metric for tracking business and government spending and the continued transition to electronic payment systems, including the full suite of Visa Commercial products and services," said Aliza Knox, senior vice president, Visa Commercial, Visa International. "Updated every year, the global CCE index benefits the entire financial services industry by providing an unbiased and consistent way to monitor global commercial expenditures and identifies new growth opportunities for our stakeholders by measuring the traction of various payment types with corporate and government entities."
CCE Methodology
Utilizing methodology developed in-house by Visa and unveiled in 2004, CCE draws upon government data using methods similar to those employed for the Personal Consumption Expenditure (PCE) index, which monitors consumer-related spending. Global CCE is measured using four key data elements: the amount of business-to-business purchases to acquire goods and services used in production; wholesale and retail purchases of final goods; some business capital expenditures; and government spending on goods and services. Adjustments were made to exclude capitalized expenditures, such as construction and durable defense spending. The calculations measure transactions at basic prices, which include taxes (less subsidies) on production. Retroactive adjustments are made to account for any revisions in officially published statistics and economic data in current and previous years. Many types of transactions included in CCE can be captured on a variety of Visa products including Visa Corporate, Visa Purchasing, Visa Business, and Visa Fleet.
Commercial Expenditure Regional Breakdown
The overall 2006 measurement for electronic and paper-based business and government spending within Visa's six global regions breaks down as follows
Region 2005 2006
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Europe US$21.2 trillion US$22.5 trillion
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United States US$16.2 trillion US$17.3 trillion
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Asia Pacific US$15.9 trillion US$17.0 trillion
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Central/Eastern Europe, US$3.9 trillion US$4.5 trillion
Middle East and Africa
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Latin America/Caribbean US$2.9 trillion US$3.4 trillion
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Canada US$1.7 trillion US$2.0 trillion
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Total Global CCE US$61.8 trillion US$66.7 trillion
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Visa Commercial provides payment products with information management and services designed to help businesses and government achieve greater efficiency, control and convenience. The global CCE index establishes a valuable baseline for measuring segment penetration growth and effectiveness for Visa and its member financial institutions.
Visa will continue to provide global CCE measurements annually.
Notes to Editors:
Complementary CCE Analysis Available: Today, Visa USA is providing a detailed segmentation analysis of commercial spending in the US market broken down by small, mid-sized and large companies, and government agencies associated with the release of the latest global CCE data. For more information, please visit the newsroom at www.usa.visa.com. In April, Visa Europe plans to provide a localized version of the CCE announcement containing data specific to their region. For more information, please visit their press and media site at www.visaeurope.com.
About Visa Commercial: Visa Commercial payment solutions -- Visa Business, Visa Corporate, Visa Purchasing, and Visa Commerce -- combine payment with information to create intelligent payment solutions that enable business and government organizations of any size and type to reduce costs, streamline operational and payment processes, and make more informed business decisions. Backed by Visa's unsurpassed acceptance and utility, Visa Commercial products and services provide the most complete way to manage payment-related processes, including travel and entertainment and procurement expenditures, payroll distribution, and information management. For more information, visit www.visa.com/visacommercial.
About Visa: Visa connects cardholders, merchants and financial institutions through the world's largest electronic payments network. Visa products allow buyers and sellers to conduct commerce with ease and confidence in both the physical and virtual worlds. Visa is committed to the sustained growth of electronic payment systems to support the needs of all stakeholders and to drive economic growth. Visa products currently generate more than $4 trillion in sales volume worldwide. Visa has unsurpassed acceptance worldwide including one million ATMs. For more information, visit www.corporate.visa.com.
CONTACT: Visa International Sabine Middlemass +1 650-432-8307 Cell: +1 650-533-4106 globalmedia@visa.com or Burson-Marsteller Carolyn Krytzer +1 415-591-4022 carolyn.krytzer@bm.com
Source: Business Wire (Business Wire India)