CBA (ASX:CBA) share price gains amid 'smart' new payments launch

CBA has moved further into Square's space with the launch of its new payment terminal.

| More on:
A smiling market stall holder selling flowers holds out a payment machine to a customer who hovers her telephone over it to pay via Zip

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price is in the green amid the launch of the bank's new Smart payment solution.

The Smart payment solution features a stand-alone terminal that can run on mobile internet and features-tailored apps for businesses.

At the time of writing, the CBA share price is $104.88, 0.95% higher than its previous close.

Let's take a closer look at CBA's 'smart' new payment system.

CBA launches new payments terminal

The CBA share price is rising after the bank announced its business customers can get their hands on its Smart terminal from Monday.

The terminal will replace the bank's Albert terminals. The bank states it will be particularly useful for hospitality, retail, and healthcare businesses.

Additionally, before the end of this year, CBA will be launching a lightweight, pocket-sized card reader. The aptly named Smart Mini Pay can pair with a business's own device to take chip and contactless payments.  

Together, the bank's Smart terminals offer many of the same features as Square Inc's (NYSE: SQ) popular portable terminals.

CBA also launched into the buy now, pay later arena in August. The bank's StepPay offering launched ahead of Square's acquisition of Afterpay Ltd (ASX: APT).

CBA's Smart terminal also offers dual-sim functionality and an 'App Marketplace' personalised to individual businesses like a "donations app" or "health claiming app".

It also allows users to split payments, add surcharges, email receipts, and can help keep track of inventories.

CBA group executive of business banking Mike Vacy-Lyle commented on the Smart terminal:

Using the latest technology and customer feedback, we're making payment solutions that are more intuitive, customisable and secure…

This means businesses can spend more time serving their customers and focusing on what matters most to them in their business.

CBA share price snapshot

The CBA share price hasn't gone far this month, gaining just 0.3% since the end of September.

However, it is 25% higher than it was at the start of 2021. It has also gained 51% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

Happy couple at Bank ATM machine.
Earnings Results

ANZ shares on watch after cash profit dives 9% to $6.7b

How did the big four bank perform during the 12 months compared to expectations?

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Bank Shares

CBA shares: What to watch out for in next week's update

We discuss what to look out for in CBA's earnings next week...

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Bank Shares

Everything you need to know about the NAB dividend

NAB will soon be sending its next payout to investors.

Read more »

A man looking at his laptop and thinking.
Bank Shares

Why is the Bendigo Bank share price tanking today?

There are a few things that could be driving this bank lower today.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Bank Shares

Why is the Westpac share price sinking today?

What's going on with the shares of Australia's oldest bank on Thursday? Let's find out.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

NAB shares tumble 3% after FY24 result disappoints investors

The market isn't liking the big four bank's result today.

Read more »

A man looking at his laptop and thinking.
Earnings Results

NAB share price on watch after FY24 profits sink to $7.1b

How did the big four bank perform during the year?

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

Buying CBA shares? Here's why the bank is entering the advertising business

CBA’s media network will be a first for any Australian bank.

Read more »