Citi Introduces Account-to-Account Payment Tool PayTo

Citi has debuted its PayTo initiator, a payment solution for its institutional clients.

PayTo lets clients access what Citi calls a “faster, cost-effective, and more secure” alternative to credit cards, debit cards or direct debits, per a Tuesday (May 20) press release.

With PayTo, those “clients can initiate account-to-account pull payments,” the bank said in a news release. “This means clients’ customers can pay directly from their bank account, in real-time, enabling a transparent and instant process for clients.”

According to the release, PayTo offers Citi clients seamless reconciliation and reduced fees as it lessens reliance on card fees and decreases the likelihood of chargebacks. The tool can be used for transactions including in-app payments or eCommerce payments, outsourced payroll, utility bills, flight bookings, subscriptions and digital wallet top-ups.

“Our clients want smarter payments solutions, and PayTo is a cost-effective, transparent and secure solution,” Citi Australia and New Zealand Head of Treasury and Trade Solutions, Services Kirstin Renner said in the release.

“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. 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.”

In related news, PYMNTS wrote recently about the relatively untapped potential of open banking payments, noting that research suggests that the proper incentives could open the door to widespread consumer adoption.

The collaboration between PYMNTS Intelligence and Trustly, titled “What Consumers Need for Pay by Bank to Catch On,” examines U.S. consumers’ current awareness of and inclination towards making pay by bank/open banking payments.

The study found that strategic incentives, especially discounts and cash-back offers, significantly boost interest even among those initially resistant to the idea.

The report highlights that while current usage remains modest, future growth depends on effectively targeting key demographics and underscoring the applicability of pay by bank beyond traditional retail transactions.

“The report identifies a significant awareness gap as a primary hurdle, with 56% of consumers stating they are simply not familiar with pay by bank,” PYMNTS wrote. “However, the research highlights the power of incentives in bridging this gap, demonstrating a 72% increase in interest when consumers are offered cash-back discounts or loyalty benefits.”