This week Amazon announced that they would finally be diving into the brick-and-mortar world with the launch of their new mobile credit card reader. The new credit card reader is similar to Square and PayPal’s current popular options.
Just like those of their competitors, the credit card reader plugs into the headphone jack of a mobile phone or tablet and works in tandem with a mobile app, so it can be used offline by any size business. The combination App and reader have been branded as Amazon Local Register.
While this is obviously not an original product, it does come backed by the brand power of Amazon. In the true cost saving Amazon style, the reader is only $10, and they are waiving the first $10 in swiping fees so it is basically free. Amazon is also shaking up the industry and challenging their competition with their low fees:
For users who sign up for Local Register before October 31, Amazon will charge a flat rate of 1.75 percent per swipe until January 1, 2016—low by the convoluted standards of the traditional credit card industry, and even by the flat rate pioneers at Square, which charges 2.75 percent.
For those who sign up after October, Amazon will take a 2.5 percent cut of each card swipe, which is still less than what Square takes. Another great feature that Amazon Local Register offers, similar to the competition, is in-app analytics reporting.
Watch the video below to see the Amazon Local Register in action and read more about the launch here: Amazon Takes Shopping Offline With a New Mobile Credit Card Reader | Business | WIRED.