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.

Image source: Getty Images

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.

Should you invest $1,000 in Commonwealth Bank right now?

Before you consider Commonwealth Bank, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Commonwealth Bank wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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