Bank of America debuts mobile payment device

A Bank of America affiliate announced Tuesday that it has created a mobile payment system for businesses, joining an increasingly competitive field popularized by startups like Square.

Called "Mobile Pay on Demand," the system allows businesses to accept payments through their smartphone or iPad through a secure card reader that plugs in and free app.

The company will not charge monthly fees. Businesses will pay 2.7 percent per swipe. The service will be available starting Dec. 3.

“In today’s economic environment, small businesses are looking for secure, easy and portable ways to confidently accept payments beyond cash, and promote their business to a broader customer base,” said Tom Bell, CEO of Bank of America Merchant Services. “We are making it even easier for small business owners to accept secure payments anywhere."

Bank of America Merchant Services is a privately held company jointly owned by the Charlotte bank and First Data Corp.

Square, which processes about $8 billion in annual payments, has about 5,000 customers in the Charlotte area. PayPal, Intuit, Groupon and Google also have products in the space.