The mobile card reader and payment processor market has exploded over the past 3 years with big names like Square and Paypal leading the market share although this may change soon. Amazon who is well-known for diving in saturated markets and leveraging their brand name to win over consumers. This time they made the decision to launch their own mobile payment processor called Amazon Local Register.
The service acts just like any other competitor, offering small business owners the ability to swipe customers credit cards via a smartphone or tablet attachment. Some of you are probably wondering why anyone would switch to Amazon's offering when Square and Paypal's options are already working for them. The kicker comes down to Amazon's low fee structure which undercuts the competition and ultimately means more money in a small business owner's pocket.
Anyone who signs up for an Amazon Local Register account before October 31st will be charged a flat 1.75% fee until January 2nd. This is a full percent lower than Square's 2.75% fee (Paypal offers a 2.7% fee) so there is great incentive to make the switch soon. However, this ultra-low fee is only temporary and will be bumped up to 2.5% after January 2nd so Amazon's advantage will decrease significantly yet the difference is still worthwhile if your business does a high volume of mobile payment processing.
Amazon's card reader attachment is now available for select Android, iOS, and Amazon devices with a price tag of $10. They are also offering an Kindle Fire HDX 8.9″ bundle which includes the card reader attachment for $379. While it should work with most Android devices, the only “officially” supported ones are Samsung's Galaxy S3/S4/S5.
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As a graduate of the University of Massachusetts and our Managing Editor, Colt loves testing out the newest tech products/services. His goal is to help better educate other consumers to ensure the most satisfying purchases decisions on consumer electronics and services. When he is not working on creating new content, Colt enjoys spending time with his two Australian Shepherds, Mia and Zoey.