Bank of America Corp (BAC.N) on Tuesday said it is offering small business customers a credit card reader that can be used through their smartphones, adding competition for providers such as Square Inc.
Bank of America Merchant Services, a joint venture between the No. 2 U.S. bank by assets and First Data Corp, said "Mobile Pay on Demand" will be available starting December 3. It works with smartphones and Apple Inc (AAPL.O) iPads.
The service comes with a free app and reader, the bank said. Merchants pay swipe fees with each transaction.
The device is the latest entry in a changing payments industry that includes "mobile wallets" in which customers use their smartphones to make purchases and new types of point of sale terminals for merchants. (Reporting By Rick Rothacker in Charlotte, N.C.; Editing by Bob Burgdorfer)