Citigroup (Citi) has launched a new mobile payment solution in the Dominican Republic which is designed to make transactions more efficient for small grocery stores and businesses.

Citi said the payment solution, called Citi Mobile Collect, made it possible for small businesses that are not yet part of the banking system to open an account and perform more secure and convenient transactions with suppliers.

According to Citi, 64% of grocery stores and small businesses in the Dominican Republic operate on a cash-only basis.

The new system has been introduced in partnership with Dominican Republic-based mobile payment administrator GCS Systems.

Máximo Vidal, general manager, Citi, Dominican Republic, said Citi were using "cutting-edge technology in an innovative way" to address payment limitations in the Domican Republic.

He added: "We are offering providers a more efficient way to receive payment from their distributors, even in communities with low levels of banking, allowing them to expand their market."

Fernando Iraola, CEO of Citi transaction services for Latin America and Mexico, said: "Citi is always looking to offer solutions to its clients’ needs in all of the markets where it operates, while at the same time contributing to community well-being and economic development through greater financial inclusion."

Citi said it planned to introduce the system to other Latin American countries as well.


Related stories:

Citi reports 32% drop in FY12 net profit

Citi to axe 4% of global workforce

Citi opens Philippines smart banking branch