Wells Fargo & Co. is banking on mobile payments resonating with its customers.

The financial services company announced today that it is launching Wells Fargo Wallet, which will allow its customers to check out in stores with their smartphones. The financial institution also announced that it will allow consumers to transact with its ATMs via a smartphone. These features will be available this summer, the company says.

The wallet feature is being added to the Wells Fargo Android mobile app. A consumer that has the app and Bluetooth turned on in the settings of her smartphone can use her device to pay for purchases at a store equipped with Near Field Communication-enabled payment terminals. Near Field Communication is a short-range wireless technology that allows smartphones to communicate with payment terminals. To use the digital wallet to pay, a consumer must link it to a Wells Fargo debit or credit card which will be charged when she checks out.

There are three ways to access and pay with the Wells Fargo Wallet, says Jim Smith, head of Wells Fargo virtual channels. The easiest way is to unlock her phone via a PIN or a finger pattern and hold her device near the payment terminal. The app and wallet will automatically launch and make the payment.

If a consumer’s smartphone is not locked with a password, biometrics or pattern, she will have to launch the app to enter her credentials, tap on the Wallet icon in the app, hit Pay Now and then hold her smartphone up to the terminal. She can also create a shortcut to the Wells Fargo Wallet on her smartphone home screen, so then she can click on the Wallet tile, enter a code, press Pay Now and tap her smartphone to the terminal.

21% of retail locations accept contactless payments, according to an October 2015 study by research firm Javelin Strategy and Research. The research firm expects the number of retailers that will accept contactless payments to grow to 25% by 2017 and 32% by 2019.

Mobile innovation is a key area of focus for Wells Fargo, says Steve Ellis, head of Wells Fargo’s Innovation Group.

“With more than 17 million customers, mobile banking is Wells Fargo’s fastest-growing channel in company history,” Smith says.

Wells Fargo decided to add the feature to its Android app because the wallet uses an open version of NFC, which is not available on iOS, Smith says. About 38% of Wells Fargo’s mobile app customers use Android smartphones, which is about 5 million customers, Smith says.

“These customers have the highest amount of monthly sessions, logging in an average of 17 sessions per month,” Smith says.

It makes sense for banks to launch their own mobile wallets, says Thad Peterson, senior analyst at payments consulting firm Aite Group. And Wells Fargo isn’t the only bank adding this feature, as Capital One Financial Corp. and RBC Bank have mobile wallets as well.

“Some customers will prefer a bank branded wallet to Apple or Android and this addresses that need,” Peterson says. “Also, the linkage to the mobile banking platform makes provisioning the wallet automatic and customers can see all of their transaction activity on one app, their mobile banking app.”

Wells Fargo also announced that 40% of its ATMs will be NFC-enabled by the end of 2016, enabling customers to withdraw cash and perform other tasks without swiping a card.

Here’s how that process works: A Well Fargo customer initiates the transaction by unlocking her smartphone and holding it to the NFC icon, a series of curved lines, on the ATM. Once authorized, the ATM’s main menu will appear, the customer enters her PIN and then she can complete her ATM transaction, Smith says.

“The steady increase of NFC-enabled payment terminals, in addition to the proliferation of NFC-enabled ATMs, will drive customer adoption of mobile wallets,” Smith says.

Other banks such as JPMorgan Chase & Co. and BMO Harris Bank also have ATM’s that its customer can interact with via their smartphone apps.

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