Bank of America (BoA) is to offer a service that turns a customer’s smartphone or tablet into a mobile payment device. Available from December 3rd Mobile Pay on Demand reveals the banks intention to compete with Square Payments in this section of the US payment market.
Mobile Pay on Demand is free to sign up and charges a 2.3% swipe card fee. Transactions that have to be manually keyed will cost 3.5% plus USD0.15. The service will be available on Visa, MasterCard and Discover, as well as AMEX, whose rates vary (2.30% to 3.50% + USD0.00 to USD0.15) based on a variety of factors.
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The bank, which is targeting small businesses with the service, will offer customers with a BoA checking account next-day access to funds even if the payment is received out of business hours. The bank also claims potential clients can be approved in just one hour.
Payment processing company First Data have developed the mobile app and card reader which enables customers to convert their device.
Tom Bell, chief executive officer, Bank of America Merchant Services said: "In today’s economic environment, small businesses are looking for secure, easy and portable ways to confidently accept payments beyond cash, and promote their business to a broader customer base."
Merchants who sign up for Mobile Pay on Demand can also access BankAmeriDeals and iDeals Marketing Platform Pro. These two services are designed to connect merchants with new and existing customers via promotional offers, online coupons and deals.
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