In a move to undercut Square and PayPal, Amazon launches a new card reader with a cheaper flat rate charge.
Amazon wants to be everywhere, and that means joining the credit card payments business. Albeit late, Amazon's foray into the market dominated by Square and PayPal isn't surprising. After all, the company is all about e-commerce, not to mention eBooks, web services, video and music streaming.
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Amazon's latest offering is a card reader that will allow businesses to accept credit and debit card payments. Matt Swann, Vice President of Amazon's Local Commerce, said that its card reader will make payments easy and inexpensive.
“We understand that every penny and every minute counts, so 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,” he said.
It works by attaching the card reader into your smartphone and tablet. Amazon has built a mobile app to aid the experience. The app is available for Kindle Fire devices, iOS devices, and Android devices.
The Amazon Local Register card reader, as it is called, supports major credit and debit cards. Money from transactions will be deposited into a bank account within one business day, Amazon said in a statement.
And to match the announcement, Amazon is offering a super-low promotional rate of 1.75 percent per card swipe, up until January 2016. To avail this offer, you'll need to register via localregister.amazon.com on or before October 31st. You can now buy the Amazon Local Register card reader for $10 via Amazon.