Bank of America to challenge Square, Verifone in mobile payments

The service will allow small retailers to accept credit cards with smartphones and tablet PCs

Bank of America will extend its mobile payments service to small retailers in December, allowing them to use smartphones and tablets as point-of-sale terminals.

The entry of the country's largest processor of electronic payments into the small-retailer sector of the market further endorses use of phones as payment terminals and will mean stiffer competition for existing players like Square and Verifone.

Bank of America's Mobile Pay on Demand service will be available from Dec. 3 and will be compatible with Android and Apple iOS devices. The bank will supply a credit card reader and an application that are installed on the retailers' mobile devices.

Targeted at businesses that process only a few credit card payments each day, the Bank of America service will charge retailers 2.7 percent for swiped-card Visa, Mastercard and Discover purchases and 3.5 percent plus $0.15 for transactions where the card number is keyed in. American Express processing is also supported at fees ranging from 2.3 percent to 3.5 percent.

Competitor Square, which popularized the sector when it launched an iPhone payment device in October 2010, charges 2.75 percent per transaction or a $275-per-month flat fee with no transaction charges.

At launch, the Bank of America service will only pull credit card data from the magnetic strip on the cards.

A rival, Verifone, launched a payment device for smartphones and tablets last week that is compatible with the "chip and PIN" credit cards that are in use in many countries. Chip and PIN has become the dominant technology in Europe and relies on a smartcard credit card and personal identification number rather than a signature.

The new Bank of America service is for in-person payments. A similar service, Mobile Pay Business, is already offered by the bank for retailers that process many payments per month in person, by mail and by phone.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mobile applicationsBank of AmericaVeriFonemobileSquare

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?