Amazon undercuts Square with own mobile card reader
Amazon is taking on Square and PayPal by launching its own mobile card reader, called Amazon Local Register. Although the ecommerce giant hasn't announced the mobile card reader yet, there is a dedicated section for the product on Amazon's site (where it is available for $10), and a YouTube introduction video highlighting its features.
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. The $10 fee for the card reader itself will be offset by the lack of processing fee for the first $10 worth of transactions.
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?