Bank of America launches Square mobile payment copycat

Bank of America’s nearly identical copycat to the Square mobile payment service will also offer a free card reader and a stand-alone terminal.

Transaction fees for payments will cost 2.7 percent per swiped transaction. Like Square, Bank of America charges no monthly or annual fees, and the mobile application is to be available for both iOS and Android. For a hearty fee, the bank will also offer First Data’s FD400Ti Wireless Terminal that utilizes 3G wireless over Sprint’sTM CDMA and AT&T’sTM GPRS networks.

While the rate is priced slightly below Square’s 2.75 percent, it is much higher than the Groupon active daily deal providers’ 1.8 percent plus 15 cents fee.

Bank of America has relationships with roughly two million small-to-mid-sized businesses that don’t currently use its payment processing services. The service targets the same Square users, including taxi cab drivers, vendors at farmer’s markets and service contractors.

Bank of America: