Amid pressure on consumers to explore alternatives to card payments, Citi has launched PayTo.
Citi has offered customers to ditch their debit and credit cards with the launch of a new account-to-account (A2A) initiator.
Launched on May 20, PayTo allows customers to pay directly from their bank account in real-time. In addition to reducing reliance on cards, the product also acts as an alternative to direct debits.
Kirstin Renner, Citi Australia and New Zealand Head of Treasury and Trade Solutions, Services, described the solution as “cost-effective, transparent and secure”.
Clients can use PayTo for everyday transactions, including utility bills, flight bookings, subscriptions and e-commerce payments.
“Through PayTo, we’re truly giving our clients access to the future of payments. We anticipate strong take-up of this offer as clients welcome the benefits for themselves and their end customer,” Renner said.
Citi outlined improved reconciliation and a reduction in fees as the main benefits of the PayTo, adding that it aims to reduce reliance on card fees and decrease the likelihood of chargebacks.
Rise of card alternatives
The launch is likely to garner a lot of market attention given the impact it will have on reducing card fees for customers.
Earlier this week, Mastercard agreed to pay up to £200m to consumers following a nine-year lawsuit over its interchange fees.
Regulators around the world have also encouraged consumers to use alternative payment methods as concerns about the dominance of cards continue to grow. In May 2024, the UK’s Payment Systems Regulator (PSR) stated Mastercard and Visa are not facing an effective level of competition.
Despite attempts to diversify the payments landscape, consumers in the UK still select cards as their preferred payment option.
A UK Finance report in April 2025 found the total value of transactions made using UK-issued cards surpassed £1trn in 2024. The number of cards in circulation also increased to 163.4 million by the end of 2024 from 159.7 million the previous year.
While the launch of PayTo may not impact card usage, Citi views the solution as a valuable addition to its suite of services, which serves around 19,000 clients.
“As we progress toward an increasingly 24/7, digital-led economy, we are focused on delivering innovations for our clients that will keep them at the forefront of technological change in payments,” Renner concluded.
