Amazon Local Register

Amazon is taking on Square and PayPal by launching its own mobile card reader, called Amazon Local Register. Announced earlier today, the card reader is available for $10, which is offset by a lack of processing fee for the first $10 worth of transactions.

Amazon's mobile card reader will work a similar way as Square's offering in that businesses will be able to take payments by connecting the reader to a smartphone or tablet. Currently, that list includes the Galaxy S3, Galaxy S4 and Galaxy S5 for Android, iPhone 4 and above as well as the iPad, iPad Mini and Amazon's Kindle Fire HD, HDX 7 and HDX 8.9. Along with the card reader, Amazon is offering accessories, which include cases and stands, cash drawers and a Kindle Fire HDX 8.9 bundle that is available for $379.

Amazon will charge 1.75 percent for each transaction, undercutting Square, which charges 2.75 percent, and PayPal Here at 2.7 percent. However, there is a caveat here, as Amazon mentions that the pricing is an "introductory deal" and as such will only be valid up to 1 January 2016. The regular pricing that is being targeted by the retailer is 2.5 percent, which is still less than what Square is charging. Amazon's mobile card reader solution is available only in the US for now.

What do you guys think of Amazon's entry into the world of mobile card readers? Do you think the retailer's strong digital ecosystem of content will allow it to outdo the likes of Square and PayPal?

Source: Amazon; Via: Engadget

 

Reader comments

Amazon undercuts Square with own mobile card reader

19 Comments

The rates are right. Even after the locked in rates are over they are still the best on the market. Their reader needs to accept smart cards. I believe being the first major mobile operation in the US to accept those as well as their rates would put them in a strong position to become the defacto mobile processor. Also wouldn't hurt to open up the supported devices

Posted via Android Central App

Yes the rates are nice and they just need to open it up to every device that runs their mobile apps.

Whether it be and Android, iOS or Windows Phone, it should work with it.

Personally I hope it pushes Square to drop their fee down a bit more to stay competitive, since many businesses already have this implemented.

Aren't the US finally getting rid of the old unsecure magnetic stripe? I thought there was some news about it earlier this year?

leif You are right Visa and MasterCard have mandated October 1, 2015 – Liability will shift to acquirers for domestic and cross-border counterfeit fraud card-present POS transactions if the merchant does not have an EMV-enabled POS device.

I agree with you 2. Unless I misunderstand, these readers will be useless in about a year. Right?

Posted via Android Central App

Only the US. Only a few devices. Bait and switch pricing. Don't be naive enough to think 2.5% is set in stone 2 years from now equals non starter. Weak sauce Amazon.

Posted via Android Central App

The limitation to the US makes sense if their device only supports the magnetic stripe. Many other countries have already switched to the emv chip years ago and most new cedit cards ship with nfc support.

I dont get your point.I have just as much assurance from Amazon that I have from Square and any other company. Why not take advantage of the low rate to start. Its not like you have an exclusive contract with Amazon for using this which requires you to use them and only them for the rest of eternity.

I'm actually looking for a service like that but if Amazon's system only supports a few devices, that is a negative. And why is Amazon charging for the hardware when PayPal and Square give theirs for free?

Posted via Android Central App

I suppose you're right. But after reading the comments on the Amazon website for the card reader the system doesn't look too good. Maybe it will improve.

Square makes a similar offer for card readers purchased from places like Best Buy. You purchase the reader for $10 and they deposit $10 into your Square account

Newbie ?...If you don't want to use the card reader does Amazon still offer the same low rate for ecommerce transactions?

Manually keyed in transactions with Amazon will be %2.75. I imagine after the initial rate it will go up to about %3.75