Bank of America to Test Mobile Payments

By  |  Friday, August 20, 2010 at 1:16 pm

Bank of America expects to begin a test in New York City in September to see if a system the company has set up to allow consumers to pay for purchases using their mobile phones is viable. Initially, BP gas stations, New York City taxis, Burger King, McDonald’s, Home Depot, and the Walgreen’s and CVS drug store chains will accept the mobile payments.

The test would run through the end of the year, according to a Reuters report.

The system works through a specially-equipped micro SD card that is inserted into the phone. The technology was created by DeviceFidelity, and uses Near-Field Communication (NFC) to communicate with the payment device. A solution is also available for the iPhone, but involves using a special case to be installed on the phone.

To pay, a user would simply have to wave their phone near a reader similar to the way contactless credit cards are currently used. The payment device would collect the users banking information and charge the user’s account.

Wireless carriers are already working on their own system, according to reports earlier this month, and the credit card providers themselves are working on their own solution as well. The carrier’s solution is a little different: it involves a phone with the NFC technology built in, and the charge goes to the user’s cellular account and not directly to their bank account.

Mobile payment solutions are already live in Japan, South Korea, Turkey, and the UK.

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  1. Tech Says:

    Sounds like a nightmare in terms of security.