A mobile application being pilot tested by Bank of America lets consumers use their smartphones as payments devices without requiring retailers to install new hardware.

Participating retailers create a quick response, or QR, code that contains information about the transaction. When users scan the QR code, the app accesses the linked checking or savings account and executes the transaction.

Bank of America—the fifth largest company in the U.S. by revenue—partnered with technology developer Paydiant and five retailers in Charlotte, N.C. (home to the bank’s corporate headquarters) for the 90-day test. The app can be linked to a checking or savings account and is being tested on both Apple’s iOS and Google’s Android operating systems.

“It’s really about offering our customers convenience, choice and flexibility,” says Tara Burke, spokesperson at Bank of America. “We’re always looking for new and innovative ways to add convenience to our customers’ lives.”

Wellesley, Mass.-based mobile payments technology startup Paydiant developed a technology that doesn’t require merchants to buy and install new hardware, which is a concern for merchants because of time and cost. With Paydiant’s technology, merchants can either display a QR code at the register for customers to scan when checking out or print scannable codes on receipts.

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