This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here. Later this year, Citi will launch Citi Pay, its own proprietary mobile wallet that will allow its customers to make online, in-app, and in-store payments. In partnership with Masterpass, all customers will be able to make online and in-app purchases at “thousands” of merchant partners in 33 countries. Android users will also be able to make contactless NFC-based payments in-store at eligible terminals. Citi’s move follows similar wallets from other banks, including Capital One and Wells Fargo. The wallet will launch later this year in Australia, Mexico, and Singapore, and in the US in early 2017. The bank could capitalize on consumer trust and convenience to facilitate adoption. The new product fragments an ecosystem already struggling with adoption issues, which could eschew users. But Citi Pay helps eliminate friction for online purchasing, which might push Android customers to then test the wallet they’re using online in the store. Even more, 75% of customers trust their banks most to provide mobile wallets, which could help Citi Pay pick up users who might be fearful of security issues from competitors. Citi Pay may be part of a broader strategy to more effectively engage consumers through digital channels. Mobile payments are becoming more popular, but they still face some high barriers, such as consumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years. Evan Bakker, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption. Here are some key takeaways from the report: In full, the report: To get your copy of this invaluable guide, choose one of these options: The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.
CitiBank is set to launch its own proprietary mobile wallet, in partnership with Masterpass, that will allow users to make online and in-app purchases across 33 countries. The move is part of Citi's plans to engage more customers and lift revenue. The mobile wallet is also an opportunity for the bank to create a "cross-selling opportunity" and introduce users to its other digital offers, including peer-to-peer (P2P) service Zelle. In-store mobile payments in the U.S. are estimated to reach $75 this year, rising to $503bn by 2020.