Citi is now accepting peer-to-peer (P2P) payments as direct deposits eligible for the monthly checking account service fee waiver, according to a Monday, July 18 statement emailed to PYMNTS.
The move is part of the bank’s “ongoing commitment” to fostering financial inclusion in underserved communities. Citi said it is the only financial institution (FI) that ranks in the top four in the United States that accepts P2P payments this way.
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“Citi is introducing this industry-leading direct deposit enhancement to help remove a barrier that workers who primarily receive income through P2P transactions may face,” said Craig Vallorano, head of retail banking at Citi. United States at Citi, adding that the effort is a “big one.” take a step forward in the evolution of a more inclusive financial system” as Citi works to make its products more accessible to everyone.
Additionally, the bank has completely waived overdraft fees for retail banking customers, the first major financial institution to do so, according to the statement.
Citi eliminated overdraft, overdraft protection transfer and returned item fees in June. A checkless account package with low or avoidable monthly fees is also offered, and overdraft protection services are in the works.
Read more: Citi waives overdraft and item return fees on retail bank accounts
New P2P direct deposit initiative waives monthly service fees for Citi Access and Basic bank accounts for P2P payments using ACH platform in Cash App, Google Pay, PayPal, Pop Money, Venmo and Zelle, statement says .
With the growth of gig work in recent years, faster payments have become a focal point of discussion and negotiation. In “Expanding Payments Choice Playbook,” a collaboration between PYMNTS and Onbe, the impact of actual payments choice is examined against the ability to recruit and retain top freelance talent.
See more : Freelance Tech Talent Tracks Faster Digital Payments