As demand for embedded payment offerings continues to climb, Citigroup’s Citi Pay plans to keep up. 

Global revenue from embedded payments is expected to reach $59 billion by 2027, up from $32 billion in 2023, according to a study by Juniper Research.  

“Today, consumers see flexibility in a payment option as more than just a nice-to-have — it’s a necessity,” Terry O’Neil, head of connected commerce and strategic growth for Citi Retail Services, told Bank Automation News.

To keep up with demand, digital payment product suite Citi Pay is expanding its partnerships with merchants, consumers and existing Citi clients to broaden its embedded payments outreach into 2024, O’Neil said. There are three key elements that both merchants and consumers are looking for in payment products: Flexibility, security, and ease of use, O’Neil said. 

Existing products

Since May, Citi Pay has launched two payment options that help consumers fit purchases into their budgets, O’Neil said. Citi Pay Credit is a digital-only credit card that offers an independent line of credit separate from Citi credit cards allowing clients to make large purchases at participating retailers. And Citi Pay Installment Loan allows customers to pay for a full purchase amount in “equal, consistent payments over a period of six to 60 months.” 

These offerings are available “at the checkouts of merchants of all sizes and industries, particularly those who may not be able to offer private label or installment loan offerings otherwise,” O’Neil said. 

Citi Pay partners include payments platforms ChargeAfter, Freedom Pay and Shopify, O’Neil said. “These three partnerships allow interested merchants to onboard seamlessly in a matter of weeks, helping the business efficiently scale its Citi Pay products to merchants in each of their networks quickly.”  

Teaming up with Citi Pay adds credibility to payments platforms, especially important since 85% of Americans say they prefer a payment product from an established financial company rather than a startup, according to a WakeField Research survey, which surveyed 1,000 American adults in April 2023. 

Seamless approvals

Consumers want a simple and intuitive checkout experience and they are moved through the application process in seconds with Citi Pay, O’Neil said. “This creates a frictionless shopping experience so that merchants can achieve higher average order value and completion rates.” 

Citi Pay continues to listen to consumer feedback and innovates accordingly, O’Neil said. “We are dedicated to continuing conversations with our partners and customers across Citi to ensure we are evolving our products.” 

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