Citigroup to Launch Commercial Card Programs Across Latin America & Caribbean

Thursday 29 April 2004 10:37 CET | News

Citigroup Global Transaction Services and Visa International have signed a multi-country agreement to launch commercial payment and information management card programs to Citigroup corporate clients in Latin America and the Caribbean.

Under the agreement, Citigroup will provide Visa-branded card payment solutions to multinational corporate clients in the region through their Citibank Commercial Cards business. With these solutions, companies and governments will have an easy, convenient way to manage travel and entertainment expenses and pay for key supplies, control employee-spending limits, meet cash flow needs, and track business expenses. The program will be launched initially in Argentina, Brazil, Chile and Mexico and annual card spend is estimated to reach US$ 1.4 billion by 2008. Solutions offered to clients will include corporate cards for corporate travel and entertainment expenses, purchasing cards for small-to-medium value corporate procurement, and distribution cards for accounts receivable at corporations delivering merchandise to retailers. This agreement builds on successful commercial programs that Citigroup and Visa already have. In Mexico, for example, more than 150 Banamex corporate clients use Visa Commercial Solutions, yielding a cumulative average growth rate of 102 percent in total sales volume since 1999. Citibank Commercial Cards business offers card programs in over 30 countries used by over one million corporate and government cardholders. Corporate and government clients manage their programs via a robust set of management and reporting tools globally which include standard and ad hoc reports, online analytical processing (dynamic queries) of the Citibank Global Data Repository, online statements and invoices and file delivery. Commercial payments represent an enormous growth opportunity for the electronic payments industry in the region. In the last four years, the number of Visa cards for businesses and public sector institutions in Latin America grew at a compounded annual growth rate of 27 percent and Visa commercial cards generated US$1.5 billion in annual sales volume.

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Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce