Citi Says P2P Payments Are Direct Deposits to Avoid Fees

Citi is now accepting peer-to-peer (P2P) payments as direct deposits that qualify for checking account monthly service fee waivers, according to a Monday (July 18) statement emailed to PYMNTS.

The move is part of the bank’s “ongoing commitment” to further financial inclusion in underserved communities. Citi said it is the only financial institution (FI) that ranks among the top four in the U.S. that accepts P2P payments this way.

See also: Should Banks Be Liable for Unauthorized Push Payments Fraud?

“Citi is introducing this industry-leading enhancement of direct deposit to help remove a barrier that workers who primarily receive income via P2P transactions may face,” said Citi Head of U.S. Retail Banking Craig Vallorano in the statement, adding the effort is a “big step forward in the evolution of a more inclusive financial system” as Citi works to make its products more accessible to all.

Additionally, the bank has completely removed overdraft fees for retail banking customers, the first major FI to do so, according to the statement.

Citi removed overdraft, overdraft protection transfer, and returned item fees in June. A checkless account package with low or avoidable monthly charges is also being offered, and overdraft protection services are in the works.

Read more: Citi Removes Overdraft, Returned Item Fees on Retail Banking Accounts

The new P2P direct deposit initiative waives monthly service fees for the Citi Access and Basic banking accounts for P2P payments using the ACH platform in Cash App, Google Pay, PayPal, Pop Money, Venmo, and Zelle, per the statement.

With the growth of gig work in recent years, faster payments have become a central point of discussion and negotiation. In “Expanding Payments Choice Playbook,” a PYMNTS and Onbe collaboration, the impact of real payments choice is examined against the ability to recruit and retain top freelance talent.

See more: Freelance Tech Talent Follows Faster Digital Payments