Fiserv Inc., a provider of transaction and technology services for financial institutions, is introducing a mobile payment device that will allow banks to compete with Square Inc. and EBay Inc.’s PayPal.
Fiserv, which has 16,000 clients, will announce today a black attachment called SpotPay that lets iPhones and iPads accept credit and debit cards, and deposit checks into bank accounts, Rahul Gupta, group president of digital channels at Fiserv, said in an interview.
Fiserv’s entry further increases competition in the micro-merchant processing market, set to reach $1 billion in 2016, up from $30 million last year, according to researcher Aite Group LLC. Square, PayPal and VeriFone Systems Inc. are among companies that already offer merchants similar attachments. Groupon Inc., the daily coupon website, is testing an attachment as well, Bloomberg reported in May.
“We just see the success the Square product has had out there, and many of our clients have expressed an interest,” Gupta said. “We view it as an extension of the banking relationship.”
Several banks will start offering the matchbox-sized device for their small-business customers this fall, and Fiserv plans a wider roll-out of the gadget and related services in mid-2013, Gupta said.
Participating banks will market the device to their customers. Fees will be similar to Square’s, although banks may choose to offer discounts and other benefits, Gupta said.
-- Editors: Reed Stevenson, Stephen West