Credit Card Reader from Amazon
Amazon introduced a new credit card reader – Amazon Local Register. It is a credit-card processing device and mobile app which allows small business owners accept credit card payments on the go.
This Amazon’s technology includes a card reader that attaches to a device. The reader processes credit or debit card payments via a secure Amazon network, the same one that processes Amazon.com purchases.
Small businesses will need to create an account in order to start using Local Register. Then they must buy the Amazon’s card reader and upload the free mobile app. The app works on most smartphones and tablets.
The Local Register’s competitors are Square and eBay’s PayPal, both of them have similar devices. Unlike Square and PayPal, however, Amazon aims to compete on price in the mobile payment arena by undercutting the competition. For customers who sign up by October 31, Amazon will take as its fee 1.75% of each swipe of the card. For people who sign up after October 31, Amazon take a services fee of 2.5% of each payment processed. That is lower than Amazon’s competitors take.
Even though the card reader is a bit late, it won’t be a surprise if small businesses start acquiring Amazon’s card reader. The reason is Amazon offers small businesses the ability to save on transaction fees by switching to its Local Register. And business owners always look for cost saving systems.
Many small businesses already partner with Amazon for online sales. It will be reasonable for them to sign up for Local Register because Amazon offers a suite of analytics that can combine online and offline sales and help businesses improve their operations.
The Local Register is not the only payment product Amazon offers. It has Amazon payments which allow users use their Amazon login to pay at sites other than Amazon. There also is Amazon Wallet, a beta app that allows users store gift cards, reward cards, and membership cards and redeem them online or in store.