Citigroup Inc. plans to expand its business payments capabilities by joining Syncada, a supply chain processing network owned by Visa Inc. and U.S. Bancorp.
Citi and Syncada announced Tuesday that the New York bank's Global Transaction Services will add Syncada to its roster of existing supply chain financing services.
Through the division, Citi has more than 65,000 clients in more than 100 countries.
Amol Gupte, the North America Treasury and Trade Solutions head of Global Transaction Services at Citi, said in a press release that the partnership with Syncada is part of the bank's effort's to offer "best-in-class" services to clients.
Citi is the second bank that Syncada has announced as a client since Visa and U.S. Bancorp announced its formation in July 2009. In October, Syncada announced Commerce Bancshares Inc. of Kansas City, Mo., had joined the network. Analysts say that for Syncada to flourish, it would need to get multiple large banks on board, as it relies on having a built-in base of participants to conduct transactions with one another.
"Adding Citi to the Syncada network is significant for us," Kurt Schneiber, the chief executive of Syncada, said in the release. Schneiber said the addition of Citi is a "validation" of the Minneapolis venture's strategy.
