<p>ARLINGTON, Va. – Citigroup Inc, the world’s largest card issuer, according to the American Banker, has entered into an experimental program with the McDonald’s Corporation to allow customers to use their credit cards to pay for their burgers and fries. According to a recent story Citigroup and McDonald’s are using radio frequency technology analogous to the “speed pass” technology used by primary gasoline retailers to allow customers to pay for the food by credit cards. Steven Freiberg, Citigroup’s Citi Cards CEO, reported that the “jury is still out” on the McDonald’s experiment. There are technological concerns that the technology, when it malfunctions, could hold up the McDonald’s lines and Citigroup is not convinced it can make money on such small transactions, even though customers are making a lot of them. There are indications, however, that McDonald’s customers using purchase 40% more fast food when paying by credit card than they do when paying by cash, Freiberg reported. Citigroup has $109 billion in credit card receivables, more than double its size in 1997. The company is striving to remain profitable in a credit card market that is “saturated,” Freiberg said.</p>

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.