By JEFFERY LAMANOLEA | Associated PressCitibank will add $500 million in annual fees to its US credit cards business in 2017, a sign the financial services company is getting into the payments business, the Wall Street Journal reported Thursday.
The news comes as the company has been in talks with banks to expand into more payments and to make its payment cards more convenient to consumers, according to the Journal.
Citigroup will add annual fees for its US cards to its $3.9 trillion in annual revenue, the Journal reported.
Citi’s card business, which includes the Citibans Discover Card and Citibanks Citi Card, will see a $1.4 billion increase in annual revenues in 2017 as the companies continue to work together on new payment and banking products, the newspaper reported.
The company is currently negotiating with banks on new products to be offered on its card and payment products, which include an Apple Pay-like system.
In the last fiscal year, Citigroup has added about $600 million to its card business and added another $400 million in fees, the WSJ reported.
In 2018, Citiback expects to make $2.5 billion in annual transactions and $1 trillion in payments, the paper reported.