Bank of America is getting started to enter the new market of the electronic payment via mobile devices. The bank launched a pilot software to test the technology that is in the making as well.
The trial is scheduled to run for three months in which 5 retail shops are included in the area of Charlotte, N.C. The merchants offer the receivers of the transaction queries, while the bank employees will test the pilot software.
The test period started last week and so far the company has received positive views, however, the full report will be finalized on the completion of the trial phase.
The software will let users pay for purchases at points of checkout at retail stores and will work more on the lines of Google’s Google Wallet and Square’s payment software. However, the pilot is B of A’s home grown product.
Should the new software pan out, it will rise in direct competition with Google Wallet, Visa, MasterCard, PayPal and Intuit. Of late, the group of companies and banks alike is increasing by the passing day to enter the mobile devices-based electronic payments. Apple introduced its own version of the service called Passbook in the iOS 6, recently introduced concurrently with iPhone 5.
Bank of America also has plans to collaborate with Apple on Passbook. The company will develop an electronic card that will be saved in the Passbook and will act as a virtual credit/debit card.
Retail store chains Wal-Mart and Target are also developing their own mobile payment system based on near-field communications (NFC) technology. American Express, MasterCard and Visa also have similar systems in the works.