eBay Inc (EBAY), Google Inc (GOOG), Bank of America Corp (BAC): Can PayPal Continue to Compete With Big Banks?

Currently, Bank of America Corp (NYSE:BAC) customers can deposit checks, receive “shop safe” numbers to keep credit card numbers safe, and pay for items purchased on every website on the Internet. But, tech analysts are pushing for revolutionary payment methods, including the ability to pay for store purchases using a smartphone app.

PayPal’s push includes that capability and the company plans to have partnerships with two million merchants by the end of 2013. But, Bank of America Corp (NYSE:BAC) is working hard, too, with customers already able to pay without swiping using its “contactless payment” option. The company is also rivaling PayPal Here with a Mobile Pay on Demand feature that lets customers accept payment via smartphone or tablet.

Bank of America Corp (NYSE:BAC) witnessed a 70% increase in earnings in its most recent quarter. While the company is still recovering from its 2008 acquisition of Countrywide, its handling of the fallout has been an example of how to cope with a crisis. The company has scaled back, laying off workers and closing branches to combat its losses.

But, the company’s revenue was up only 3%, proving it needs to continue to be innovative to truly compete. As Bank of America Corp (NYSE:BAC), PayPal, and Google Inc (NASDAQ:GOOG) Checkout compete to revolutionize payments at cash registers around the globe, it’s hard to ignore the favorable odds for Bank of America. Because it already has a presence in bricks-and-mortar locations, Bank of America Corp (NYSE:BAC) has less ground to cover in shifting from swiping a credit card to paying without even removing a wallet.

The article Can PayPal Continue to Compete With Big Banks? originally appeared on Fool.com and is written by Stephanie Faris.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Bank of America, eBay, and Google. The Motley Fool owns shares of Bank of America, eBay, and Google. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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