Visa Teamed Up With Bank of America To Test Mobile Payments

Visa and Bank of America made an announcement that they will work hand in hand to develop and test a mobile payment system or “digital wallet,” just weeks after rumors surfaced that a number of smartphone carriers will work with Discover Financial Services to test a competing system.

Bank of America Corp will initiate the testing of its pilot program within the New York City area in September, which will allow smartphone users in the metropolitan area to make payments with their device to replace traditional credit cards. The entire testing process is expected to run ill the end of the year. Additionally, Visa also said that they will test a similar program with U.S. Bancorp in October, according to Reuters report.

“We see this as a critical capability given the increasing acceptance and adoption of bank services on the phone,” Laurie Readhead, Bank of America Corp head of electronic commerce, said.

The mobile payment testing will use NFC circuits built into MicroSD cards that can be slotted into the smartphone a specially-equipped iPhone case to provide secure storage and radio communications without being dependent on the network operator or the phone’s manufacturer.

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