Amazon is launching a credit card-processing reader and mobile app that small business owners can use to accept payments through their smartphones and tablets, including the Kindle Fire.
Called Amazon Local Register, the service is aimed at on-the-go small business owners who might otherwise only accept cash or checks. The card reader, which attaches to a smartphone or tablet, processes credit or debit card payments via the secure network that handles Amazon.com purchases.
Businesses must create an account with Amazon, buy the card reader for $10, and download the free app, which works on most smartphones and tablets. Amazon plans to compete with mobile payment systems such as Square, PayPal Here, and Intuit’s GoPayment on price, similar to its strategy in many of its businesses.
Customers who sign up by Oct. 31, 2014, will pay a special rate of 1.75 percent for each payment processed until Jan 1, 2016. After Oct. 31, Amazon will charge 2.5 percent for payments. “Payments are hard and that’s one of the things that gets in the way of serving customers, especially for small businesses,” says Amazon’s Matt Swann. “Payment tools need to be inexpensive, simple, and trusted to get the job done.”
From “Amazon Debuts Mobile Payment App and Card Reader”
Associated Press (08/13/14) Anderson, Mae