Bank Of America To Launch Mobile Payment Service

ATLANTA (AP) â¿¿ Bank of America's electronic payments division said Tuesday that it will launch its own mobile payment service next month, adding to the bevy of mobile payment options available to small businesses.

Like other online payment services, Mobile Pay on Demand will allow small businesses to turn a smartphone or iPad into a mobile point-of-sale terminal. The service will include a free mobile app, a secure card reader and no monthly or annual fees, the bank said. It will be available Dec. 3.

In August a group of big-name retailers, including Wal-Mart Stores Inc., Best-Buy Co. and Target Corp., teamed to launch a smartphone app. In addition, Google Inc. already has a smartphone payment app on some Sprint phones. And three of the biggest cellphone companies â¿¿ Verizon Wireless, AT&T and T-Mobile USA â¿¿ have a competing platform.

Payment networks Visa and MasterCard each have their own designs and apps. Square, a startup, struck a deal earlier this year to become the cellphone payments processor for Starbucks. PayPal, eBay's payment service, is on cellphones, too.

Bank of America said Mobile Pay on Demand will make it easier for small business owners to accept secure payments from customers regardless of their location and is fully integrated with existing Bank of America accounts and services.

Merchants who sign up for the service also can access a pair of marketing platforms designed to connect merchants with customers through promotional offers, online coupons and deals, Bank of America said.

Bank of America shares fell 6 cents to close at $9.34.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Personal Finance

How to Calculate Your Net Worth and Pin Down Your Financial Health

How to Calculate Your Net Worth and Pin Down Your Financial Health

The Best States for Millennials' Money and Health

The Best States for Millennials' Money and Health

U.S. Banks Urged to Make Small Loans In Competition With Payday Lenders

U.S. Banks Urged to Make Small Loans In Competition With Payday Lenders

How to Void a Check

How to Void a Check

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans