28 July 2016
Find out more

BofA first bank to take on Square

13 November 2012  |  7845 views  |  1 Bank of America Logo web screen shot

Bank of America Merchant Services has become the latest in a long line to launch a clone of Square's app and dongle-based system for turning smartphones into card readers.

The BofA and First Data payments joint venture will launch Mobile Pay on Demand early next month, enabling merchants to accept Visa, MasterCard, Discover and American Express cards through their iPhone or Android handsets.

The card reader and apps will be free, with users charged a 2.7% transaction fee - the same as PayPal Here and just under Square's 2.75%.

Trevor Rubel, EVP, strategy and emerging products, BofA, told All Things D that while the move was hardly revolutionary - "I hate to come out with a commodity product, but every bank should have one" - the bank has an advantage over its countless rivals in its trusted brand and established merchant relationships.

Merchants who sign up for Mobile Pay on Demand can also access BankAmeriDeals and iDeals Marketing Platform Pro. The two services are designed to connect merchants with new and existing customers through promotional offers, online coupons and deals. The bank says it has served more than 400 million offers since its launch early last year and has signed up 2800 merchants nationwide.

Meanwhile, European counterpart iZettle has moved to fix its problems with Visa in Denmark, Finland and Norway by introducing the workaround already used in the UK. Rather than using the dongle, a text message, with an embedded URL, is sent via the merchant to the purchaser's phone and the card details are entered at a secure Web site. IZettle for Android has also been introduced in these countries.

KeywordsEFTPOS

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 15 November, 2012, 11:01

SQUARE's primary target group is mobile merchants who don't have a merchant account with a bank, probably won't get one even if they applied for it (due to their higher risk profile), and use Square's "master merchant account" in order to accept card payments. Whereas, the target group for BofA's Mobile Pay On Demand is merchants who already have a merchant account with BofA, and within that group, only the ones that wish to accept on-the-go card payments without wanting to fork out monthly rentals for mobilePOS equipment. The two services therefore seem complementary to each other. Unless I'm missing something, it doesn't appear that BofA is taking on Square at all. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Square Wallet gets a caffeine jolt at 7000 Starbucks stores

Square Wallet gets a caffeine jolt at 7000 Starbucks stores

08 November 2012  |  8211 views  |  0 comments | 11 tweets | 6 linkedin
Finextra TV: iZettle launches in the UK

Finextra TV: iZettle launches in the UK

07 November 2012  |  11378 views  |  4 comments | 12 tweets | 7 linkedin
IZettle arrives in Germany

IZettle arrives in Germany

30 October 2012  |  7856 views  |  0 comments | 11 tweets | 5 linkedin
Square arrives in Canada

Square arrives in Canada

24 October 2012  |  6340 views  |  1 comments | 11 tweets | 1 linkedin
Payleven launches chip and PIN-based Square clone

Payleven launches chip and PIN-based Square clone

03 October 2012  |  10941 views  |  0 comments | 1 linkedin
MPowa reports First National Bank deal; denies own claims on Visa acceptance

MPowa reports First National Bank deal; denies own claims on Visa acceptance

01 October 2012  |  13128 views  |  3 comments | 3 tweets
Fiserv offers banks the tools to take on Square

Fiserv offers banks the tools to take on Square

10 September 2012  |  7507 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit capgemini.comVisit www.abe-eba.eu

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9506 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9423 views 14 comments | 32 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8287 views comments | 19 tweets | 25 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6391 views comments | 15 tweets | 19 linkedin
hands typing furiouslyHow machine learning can cut costs on tran...
6053 views 0 | 10 tweets | 3 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job