In the past we wrote about The Mobile Wallet & The Future of Merchant Services. In the article we predicted that the future of merchant service payment processing is in mobile phones and the ability to accept payments through a mobile device and even to pay for things at a check out with a tap and go of your smart phone against merchant equipment such as the Phone Swipe plugin or the Vivopay 4000.
Yesterday, Bank of America confirmed our thoughts by launching their own mobile payment solution called Mobile Pay on Demand. This service allows small business owners to accept customer payments over a cellphone. “I hate to come out with a commodity product, but every bank should have one,” said Trevor Rubel, the EVP of Bank of America’s Strategy and Emerging Products. Phone Swipe’s competitors now include Bank of America, PayPal, Groupon, Intuit and others.
Bank of America’s is charging 2.70% per swiped transaction. This is below Square’ 2.75% per transaction fee yet it does not beat Phone Swipe’s industry-leading low cost mobile payment solution at 2.69%.
