Bank of America is working with Boston-based start up Paydiant to test the company's white-labelled mobile payments service in its home town of Charlotte, North Carolina.
Paydiant's cloud-based technology interfaces with the bank's existing mobile banking applications to offer payment and redemption rewards by reading a QR code at the merchant check-out.
The technology requires no upgrade to existing retailer terminals or mobile devices and introduces no new intermediaries into the value chain. Paydiant makes its corn from from a combination of small transaction fees, user fees or revenue from advertisements and offers.
The company has so far scored $19.6 million in venture funding for the platform, and is conducting field trials with a number of banks and merchants across the US.
At bank of America, the Paydiant app is being trialled by employees in a three-month test at five merchant locations in Charlotte.
Paydiant co-founder Chris Gardner told Reuters that, for the bank of America trial, one restaurant is using codes printed on receipts, allowing customers to pay at their table and leave.Bank of America tests technology to pay with phones