The fleet card market is experiencing its most significant change since proprietary fuel networks were introduced. For decades, closed-loop ecosystems have supported commercial value, customer loyalty, and fuel efficiency. Restricting transactions to specific
locations and products has allowed issuers to manage data and margins effectively.
The maturation of open-loop EMV schemes such as Visa and Mastercard marks a turning point for the fleet industry. The main challenge is integrating open-loop solutions while preserving the strengths of existing models. The current trend favours enhancing
proprietary networks rather than fully replacing them.
An effective fleet payment strategy requires understanding the diverse commercial realities within the fleet ecosystem, rather than favouring open or closed-loop models. The needs of a global oil major differ from those of an independent reseller or telematics
provider. Stakeholders should recognise that the best issuing approach depends on their specific role in the value chain.
Oil Companies: Protecting the Core While Extending the Reach
Oil companies spent decades developing advanced closed-loop acceptance networks. These networks serve as strategic distribution channels, supporting fuel-margin optimisation and returns on infrastructure investments. Proprietary networks also enable tailored
pricing, brand loyalty programs, and detailed fuel controls that generic payment cards cannot provide.
Historically, open-loop schemes have posed risks for oil companies, including loss of routing control, margin dilution from interchange fees, and weaker customer relationships. Allowing fleet drivers to use cards anywhere reduces incentives to stay within
a specific brand’s network.
Customer expectations have evolved. Fleet operators now seek a single payment solution for both fuel and non-fuel expenses, with acceptance beyond proprietary networks for services such as maintenance, tolls, parking, and accommodation. They also expect
integrated digital reporting and consolidated invoicing to simplify administration.
Retailers can strengthen their closed-loop assets by selectively adding open-loop capabilities. A hybrid model enables scheme-enabled spending outside proprietary networks, increasing wallet share and providing richer behavioural data. Fuel transactions
remain optimised within the closed-loop network, preserving brand loyalty and healthy margins, while the open-loop component captures additional mobility spend.
Modernising Independent Issuers’ Legacy Stack
Many independent fleet card issuers, beyond the oil majors, have built acceptance consortia and proprietary transaction platforms. Despite commercial success, they often rely on legacy infrastructure developed before real-time APIs, cloud-native architectures,
and EMV standards.
These issuers must futureproof their technology by upgrading security standards, adapting to new regulations, and meeting customer expectations for real-time digital services. As fleet operators integrate payment data with telematics and ERP systems, independent
issuers must ensure their platforms remain connected and relevant.
Modernising the closed-loop model does not require abandoning it. Leading platforms now support closed-loop optimisation while embedding open-loop readiness from the start. This modular approach lets issuers activate scheme capabilities when commercially
viable, avoiding the risks of sudden migration. The goal is to maintain the proprietary network as a competitive advantage, not a technical silo.
Payments as a Data Engine for Fleet Service Providers
A third segment is emerging: fleet service providers such as telematics companies, fleet and maintenance management providers, and route optimisation specialists who have not traditionally participated in payments. For these businesses, these changes create
new revenue streams and enable them to strengthen customer relationships.
Unlike legacy operators, these providers do not have proprietary fuel networks to protect. Their advantage is control over fleet workflows and data. By adopting open-loop issuing through established schemes, they gain immediate global acceptance and lower
infrastructure costs. They can generate revenue from interchange and receivables interest without building a physical merchant network.
The main strategic benefit for this segment is data integration. Combining payment data with telematics and operational analytics shifts the value proposition from transaction processing to predictive intelligence. Spend anomalies can trigger maintenance
alerts, fuel efficiency can be benchmarked in real time, and ESG tracking can be automated across mobility spend. In this model, the payment instrument serves as a data engine supporting the provider’s core software.
The Path Toward Architectural Flexibility
The fleet sector is diverse, and technology strategies must reflect this reality. A uniform shift to open-loop payments risks eroding unique value propositions and established ROI models. Ignoring payment scheme evolution, however, risks customer loss
and displacement by more agile digital competitors.
The shift toward scheme-enabled capabilities aligns with industry trends such as global acceptance and embedded finance. However, fleet payments are unique and require line-item controls, product category restrictions, and complex tax-reclaim reporting
that standard cards rarely provide.
Success in the next phase of the market will depend on prioritising architectural flexibility. This means preserving the high-margin strengths of closed-loop networks while selectively leveraging the reach of open-loop schemes. By building modular, future-ready
infrastructure, issuers can transform transactions into operational intelligence and remain central to the fleet ecosystem, regardless of changes in energy or payment landscapes.
