Amazon is getting into the mobile payments space in a big way. The company has launched Amazon Local Register, a credit card reader for iOS and Android. The device plugs into the headphone jack of your Smartphone or tablet. If this sounds familiar, its exactly how Square and Paypal Here operate. The reader itself costs $10, but that is credited back in that the first $10 of transaction fees are credited back to the user account. It’s not just the reader that Amazon is launching, it plans a similar accessory ecosystem to rival Square with cases and stands, all the way up to full point of sale systems.
If Amazon’s ecosystem isn’t enough to give the competition some pause, the fee structure might. Square takes a fee of 2.75% of your transaction. PayPal takes ever so slightly less at 2.7%. Amazon Local Register undercuts them both at 2.5%. But wait, there’s more. If you sign up before Halloween, that rate drops to 1.75% until January 1st of 2016. That’s over a full 1% less for over a year. It might be good enough to entice even established Square users over.
With Amazon hitting the mobile credit card space hard, what do you think? Do you currently use Square or PayPal, and are you thinking about switching over? Let us know in the comment box below or on our Twitter, G+, and Facebook pages.