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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobilemobile applicationsVeriFoneBank of AmericaSquare

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?