Amazon to take on Square and PayPal with lower-rate credit card reader
Amazon has unveiled s credit card reader called 'Local Register', which comes with an accompanying app, to help small business and individuals receive payments from consumers' smartphones.
Local Register, first leaked by retailer Staples two months ago, is a mobile point-of-sale system that lets users accept credit and debit card transactions from iOS, Kindle and Android devices - with device compatibility expected to grow.
Amazon's $10 card reader is now available from the online retailer with free two-day shipping.
In a move undercutting current competitors, Amazon’s new service will incur a flat charge of 1.75 per cent per transaction for those who sign up before January 2016.
This is a lower rate than Square and Paypal which charge 2.75 per cent and 2.7 per cent respectively.
Matt Swann, vice president of Amazon Local Commerce, said: “From clothing stores to contractors, food trucks to accountants, businesses and organisations, businesses using Amazon Local Register will enjoy industry-leading low rates, trusted and secure payment processing, and access to award-winning customer support.
“We want to make accepting payments so easy and inexpensive that it no longer gets in the way of a business owner doing what they love - serving their customers and growing their business.”
The scheme will shake up the market when it is fully rolled out in 2016.
This comes after auction house site eBay topped Amazon as the most popular online retailer for mobile users, according to an Ofcom report last week.