NEW YORK—Citigroup is jumping into the battle over the $90 billion in swipe fees that merchants pay each year to process debit and credit cards.
The bank is developing a new digital consumer-payments business that will allow large merchants to collect from cards, mobile wallets and bank-account transfers, reported Bloomberg.
Citigroup will work with Mastercard's payment-gateway services to connect with payment processors and mobile wallets around the world.
“Citigroup's new product could address the growing concern among U.S. merchants that have been looking for a way to lower the amount they spend on electronic payments, especially through solutions that connect directly to a consumer's bank account, avoiding traditional credit and debit card networks,” noted Bloomberg.