Bank of America will be using the barcodes as a part of a test program.
The most recent step into the mobile payments wave is Bank of America, as it tests the use of QR codes that will permit customers to use their smartphones in order to complete transactions.
This service will be available through iPhones and Android smartphones to make payments.
The technology that is being tested by the bank was created by Paydiant, a growing name in the mobile payments industry. The solution that was chosen involves the use of QR codes, which are rapidly growing in their popularity and adoption by both businesses and consumers. The bank feels that this type of transaction will be highly successful among those customers who carry smartphones.
The QR codes will be displayed at the store’s checkout or on the check at a restaurant so a payment can be made.
This allows consumers to scan the codes and complete their purchase without having to use credit cards or cash. The information is stored within their smartphones.
The Bank of America opted for a program based on QR codes because that technology doesn’t require any special type of hardware to be installed or enabled on the mobile device. Any iOS or Android based smartphone has the technology necessary for completing these purchase transactions.
This strategy is quite different from some of the other movers in the mobile payments industry. For example, Google wallet and ISIS both use near field communication (NFC) technology for short range contactless transactions. Though greatly hyped, the chips are include in only a very small percentage of the devices currently carried by consumers. This notably limits the number of people who will be able to use the digital wallets, right from the very start. Even the latest Apple device, the iPhone 5, does not support NFC.
NFC mobile payments had previously been tested by Bank of America. The financial organization has yet to make any official comments as to what they thought of the tests and whether or not they are considering pursuing this technology any further. What is known is that its latest step is much simpler and more widely available, with QR codes that will become available in five Charlotte, North Carolina merchants this week.
