Citi Launches 24/7 Cross-Border Payment Solution for Clients
Citi has announced the integration of its blockchain-based token services platform with its clearing solution, providing a groundbreaking 24/7 multibank cross-border payment capability for institutional clients in the U.K. and U.S. This initiative, revealed on September 29, 2023, is touted as an industry first that positions Citi at the forefront of real-time transaction solutions.
“In an increasingly ‘always on’ financial landscape, global commerce doesn’t take weekends off and neither should payments,” stated Debopama Sen, Citi’s head of payments services, in a news release. The integration allows corporate and financial institution clients to initiate payment transactions and manage liquidity almost instantaneously, enhancing the ability to transfer substantial sums across Citi and non-Citi accounts globally.
Citi’s 24/7 USD Clearing solution currently supports over 250 banks across more than 40 markets, facilitating continual connectivity to the bank’s extensive network. This advancement enables multinational clients to execute rapid fund transfers to suppliers and third parties who maintain accounts within Citi’s expanding 24/7 USD Clearing framework.
Future Expansion Plans
While the service is initially available to clients in the U.S. and U.K., Citi has expressed intentions to broaden this offering to additional regions in the future. This announcement follows a recent collaboration with Dandelion, integrating Citi’s cross-border payment solution with the digital wallet network. This partnership, unveiled the week prior, allows institutional customers to utilize Citi’s WorldLink Payment Services for “near-instant, full-value payments” to digital wallets across the globe.
The newly developed capability will first extend to clients in Bangladesh, Colombia, Indonesia, and the Philippines, with plans for further expansion. Citi’s latest services aim to enhance its offerings for financial institution clients, particularly in the remittances sector.
“Paying into wallets allows Citi to enhance its offering to its financial institution clients, especially in the remittances space,” the release noted. This solution effectively addresses the increasing demand for business-to-consumer (B2C) payments, catering to various needs such as employee payouts, payroll and expense reimbursements, social benefits, customer refunds, and compensation payments.
As the financial landscape evolves, Citi’s initiatives reflect a growing commitment to providing innovative and efficient payment solutions. The bank’s focus on enabling round-the-clock transactions positions it to meet the demands of an interconnected global economy.
