Bank of America is the first bank to launch its own card reader to compete with those already offered by Square, PayPal, Intuit and others.
Called Mobile Pay on Demand, the service will allow Bank of America small-business customers to accept payments through a compatible smartphone.
“I hate to come out with a commodity product, but every bank should have one,” Trevor Rubel, executive vice president of strategy and emerging products at BofA, told AllThingsD.
The bank’s card reader and accompanying mobile apps for iOS and Android will be free and payments cost 2.7 percent of the transactions.
The service is slated to launch Dec. 3.