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When a card is used as a payment card for gasoline, petrol, diesel and other fuel, is called Fuel Card. Fuel card contains vehicle number, owner card number, and amount. The first card used in the United Kingdom, where the fuel card is in a printed version after that the usability increase the card is converted into a plastic body in 1983 after in 1986 the fuel card has magnetic strip inside it for more convenient.
The fuel consumption increases day by day through the vehicle increasement. In 2018, The United States is at number 1 position with 15.8 million barrels of oil per day consumption. China is at second position with 12 million barrels of oil per day consumption. In the third position, India with 5.6 million barrels of oil per day consumption.
A fuel card is the same as your ATM card, just like you use your ATM card for withdrawal and shopping just the same as it will use for Fuel payment. You will use your card in fuel station where you can fill your vehicle fuel tank. After payment, you will get invoice message to your registered number like ATM card method. Fuel cards prevent theft; hence, they help fleet managers reduce unaccounted spending. A fuel card is accessed using the secured pin and driver is obliged to show his identity proof while using. Thus, it helps the prevention of theft in employees and is expected to drive the fuel card industry soon.
By the Hexaresearch Report, The Europe fuel card market is expected to reach USD 264.95 billion by 2024 owing to the rising demand for cashless transactions, and the availability of add-on benefits. The evolution of technologies in the payment industry has made people more inclined towards smart payment options which ensures a track on their spending as well securely. This increased need for safe and reliable digital payment is expected to drive the fuel card industry in Europe over the next few years.
Fleet managers have been looking for viable real-time solutions to ensure appropriate tracked spending. The fuel cards not only provide with the discounts and rebate, but it also comes with online reporting tools which provide fleet managers with in-depth data as to where their fuel card has been used, who used it and for what purpose. Managers also can limit the fuel card spending real time.
The universal card has penetrated the European market and fleet managers are inclined to use it due to the various benefits it offers. Branded cards from the oil companies such as ESSO, BP, and Shell are widely used and hold the second largest market share in the forecast period.
The light weight vehicle is the ones who are major users of fuel cards. However, the heavy vehicles segment is expected to grow over the forecast period owing to the increasing commercial transport.
The UK was the largest and is likely to be the fastest growing market with a CAGR of 20.7% over the forecast period. Germany will see a steady growth during the forecast period. Many big players are opting for merger and acquisition to expand their presence in the region. For instance, international players such as WEX and FLEETCOR have entered Europe by taking over ExxonMobil and Shell respectively.
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