Citigroup Targets Fund Transfers to Mexico

Citigroup Inc. started a new service to compete with First Data Corp.’s Western Union and rivals for the estimated $10 billion of transfers from Mexicans working in the U.S. to their families back home.

The world’s largest financial services company will let U.S. customers set up transfer accounts that may be accessed by customers at its Banamex branches in Mexico with a new card, the bank said.

Citigroup plans to charge $7.95 each plus a $5 monthly maintenance fee for transfers, compared with the $14.99 charged by Western Union, the world’s largest money transfer company.

Competitors include Bank of America Corp., which has started SafeSend, a service that makes funds available at 20,000 automated teller machines in Mexico, and Grupo Financiero BBVA Bancomer, Mexico’s biggest bank, which last year reached an agreement with Wells Fargo & Co. to expand its own transfer service.