Amazon are now entering the bricks and mortar world of retail by offering a mobile payment solution which allows small business to install a card payment device to an iPhone, iPad or Android device and take payment essentially turning the device into a mobile point-of-sale. Since the attachment does not feature Chip & PIN, the system will be restricted to countries that still support card swipe devices which excludes most of Europe.
The system is set to rival Square who have, until now, been the pace-setter in this space. The transaction fee is 2.5% of the total sale which is priced to undercut Square. “From clothing stores to contractors, food trucks to accountants, businesses and organisations using Amazon Local Register will enjoy industry-leading low rates, trusted and secure payment processing, and access to award-winning customer support,” said Matt Swann, Vice President of Amazon Local Commerce. “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.”
“There is still a sizeable window for big brands to exploit in this space, and Amazon will be seeking to leverage the consumer trust it has to offer what is effectively a cash register to the small business market,” said Windsor Holden, research director at the Juniper Research consultancy.
