Citigroup is expanding its payments partnership with PayPal to allow its card members to use their ThankYou rewards points for purchases at PayPal checkout in the U.S.

The new functionality is slated to begin in 2018, the company said Thursday.

Citi sign
Citi sign Bloomberg News

The new capability builds on Citi’s initial partnership with PayPal, announced in December. The deal allows Citi cardholders to use their cards with PayPal seamlessly online, in app and in store.

Citi said the new capability is part of an overall effort to upgrade its mobile offerings, including the ability to dispute certain credit card charges, view or download PDF statements, as well as track the steps of their replacement credit card delivery in real-time within the Citi mobile app.

“We continuously strive to enable consumers to transact when they want and how they want,” said Ralph Andretta, head of U.S. branded cards at Citi, in a statement emailed to American Banker. “Our expanded agreement with PayPal will enable our 14 million ThankYou Rewards members in the U.S. to utilize an innovative, intuitive new channel to redeem their points."

Andretta added that the company is looking forward to taking the capability global "in the near future."