Citibank launches RP's 1st corporate credit card

MANILA, Philippines - US-based financial giant Citibank NA will launch the first corporate-oriented credit card in the Philippines, a top bank official said yesterday.

“It will change the culture, the spending habits of corporations,” said J. Antonio S. Itchon, Citi managing director and country head for global transaction services.

He said the new credit card will reduce operating costs of companies, while expanding the customer base of the country’s leading credit card issuer.

He added Citi will also launch a purchasing card principally focused on spending for low to medium purchases such as office supplies.

Instead of the traditional individual cardholder, a corporation or a business conglomerate is intended to be the commercial cardholder.

Itchon explained that the commercial credit card would result in savings, control and visualization of expenses since majority of corporate expenses are on travel and entertainment.

A corporate cardholder would also have the benefit of real-time data on where and how much its expenses are. In fact, the firm can set merchant or merchant blocks and credit limits, similar to firewalls in computers.

The commercial credit card system offers its corporate cardholder comprehensive data management and reporting that are online much like cash management solutions.

“We will provide online management and reporting solutions that seamlessly integrate with the financial systems of the corporate. We can design it based on the demands of the client,” Itchon said.

Citi officials said they already have a short list of corporate applicants that include multinationals with subsidiaries already operating in the Philippines or domestic conglomerates active in regional and global business activities.

Itchon said that the new card offers huge potentials in terms of other banking products and activities.

Since the card is powered by Visa International and MasterCard International, the Citi commercial card is accepted in 24 million merchants worldwide. It can also be accessed through over one million automated teller machine (ATM) locations globally.

It was first launched in the United States, and in 2004, it was rolled out in Japan.

Presently, the commercial credit cards are peso-denominated but it can be raised to a more flexible peso and US dollar-denominated card, depending in the prospective client base.

Last year, Citi launched the Citi PremierMiles card for the traveling individuals. It was likewise co-branded with Rustans Department Store, Rustan’s Supermarket and Stores Specialists Inc. stores.

Citi also introduced the unique mobile credit card, where cardholders can use their mobile phones as plastic money to order, for example, pizza , or pay utility bills.