More than 10 million Bank of America (NYSE:BAC) customers use the firm’s mobile app, which allows for deposits, money transfers and bill payments. But now the company wants to push things further, and is testing a system that allows payments at retail stores, Reuters reports.
The pilot program is currently underway in Charlotte, N.C. With it, customers can use an Apple (NASDAQ:AAPL) iPhone or Google (NASDAQ:GOOG) Android device to make a payment by simply scanning an image at a store register.
Of course, the mobile payments space is crowded, with players like eBay‘s (NASDAQ:EBAY) PayPal and Square.
But banks should still have some big advantages. After all, they have extensive infrastructure for secure payments as well as direct access to huge numbers of financial accounts.
But perhaps the biggest factor for banks is monetization — and a payments service could be a nice way to boost much-needed revenues.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.