McLean, Va.-based Sage Payment Solutions, the payments division for Sage North America, is the latest company to target small and medium-sized businesses (SMBs) with credit card acceptance via mobile devices.

According to a release, Sage Payment Solutions is bundling new merchant accounts with a product that allows customers to accept credit cards using a combination of software installed on a smartphone along with hardware attached to the handset. The system is compatible with more than 400 types of smartphones and devices and works across all major carriers. 

The announcement said Sage Mobile Payments is looking to differentiate itself from its competitors by providing services without charging incremental mobile processing or transaction fees.

“SMBs need to look at total cost of ownership when it comes to selecting a mobile payments solution,” Sage Payment Solutions President Greg Hammermaster said in the announcement. “In the end, we don’t view the mobile device as a profit center. Mobile payments is an important solution in our suite to help customers expand their sales channels and generate revenues.” 

The solution is similar to Intuit’s GoPayment solution as well as Square’s new payment product; however, both Intuit and Square charge a percentage for each transaction plus a flat, per-transaction fee.

Square, a start-up headed by Twitter alum Jack Dorsey, has garnered significant attention. A recently announced round of venture financing raised $27.5 million for the company. 

In the wake of Square's announcement, Intuit began offering free hardware along with a waiver on monthly fees to new customers of its two-year-old GoPayment service.

All of this is good news for small and medium-sized businesses. The increased competition means SMBs looking to accept credit and debit card are finding attractive pricing offers as well as a convenient way to integrate card acceptance with mobile devices.

Sage Payment Solutions is partnering on the new product with ROAM Data, a mobile commerce solutions provider out of Boston.