Amazon.com has launched Amazon Local Register, a secure card reader and mobile app designed to allow local businesses to process digital transactions originating from a smartphone or tablet.
Local Register will serve as a direct competitor to mobile payment processors PayPal and Square. Retail customers who sign up for the Local Register before October 31, 2014 will receive an introductory rate of 1.75% per card swipe until January 1, 2016. The Amazon solution’s initial flat rates are less expensive than Square and PayPal, which offer swiped rates at 2.75% and 2.7%, respectively.
Payments received through Local Register go directly to the merchant’s bank account the next business day. Amazon also is allowing merchants to use the payments on its e-Commerce site.
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“We understand that every penny and every minute counts,” said Matt Swann, VP of Local Commerce at Amazon. “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.”
The secure card reader costs $10, but Amazon will credit payment system users $10 in processing fees, essentially cancelling out the initial payment. The free mobile app can be downloaded from Amazon Appstore, Apple App Store or Google Play.
In addition to a cash register, the solution includes in-app reports that track sales growth, company transactions and business metrics. Amazon also is offering compatible accessories, including secure stands, receipt printers and cash drawers designed to allow retailers to install a full checkout system.
