Small businesses looking to take occasional card payments without paying monthly fees now have a third option as Amazon has launched Local Register to compete with Square and PayPal Here – as we predicted last month. The $10 card-reader is compatible with any iPhone from the iPhone 4 onward, as well as any iPad or iPad mini.

Amazon is undercutting both competitor services with a flat fee of 2.5 percent per transaction (vs 2.7 percent for PayPal Here and 2.75 percent for Square). Not enough? Amazon is sweetening the deal with a special introductory rate of 1.75 percent until the end of 2015, and will also credit the $10 cost of the cardreader in full against transaction fees … 

“From clothing stores to contractors, food trucks to accountants, businesses and organizations 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.

The free companion app includes reporting features for “bottom line performance, sales trends, peak sales times and more.” For those who want to get more serious about it, Amazon is offering a range of accessories, including cash drawers, receipt printers, smartphone cases and stands.

The service is initially available in the U.S. and Japan only but is expected to roll out internationally. You can see more on the Local Register microsite, and the full press release is included below.

Introducing Amazon Local Register

New card reader and mobile app backed by award-winning customer support and the same services that securely power Amazon.com purchases

Free mobile app available on Amazon Appstore, Apple App Store and Google Play

Industry-leading low transaction rate – customers who sign up before October 31 receive rate of 1.75 percent on swiped transactions until January 1, 2016

SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN) – Amazon.com today announced Amazon Local Register, a secure card reader and mobile app that provides local businesses with the tools they need to quickly and easily accept credit and debit cards from a smartphone or tablet and keep track of their growing business. Amazon Local Register customers will have access to the Amazon.com award-winning, fully dedicated customer support team, as well as in-app tracking tools. Customers who sign up for Amazon Local Register before October 31 will also receive a low promotional rate of 1.75 percent per card swipe on all major credit and debit cards until January 1, 2016. Additional details are available at localregister.amazon.com.

“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.”SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN) – Amazon.com today announced Amazon Local Register, a secure card reader and mobile app that provides local businesses with the tools they need to quickly and easily accept credit and debit cards from a smartphone or tablet and keep track of their growing business. Amazon Local Register customers will have access to the Amazon.com award-winning, fully dedicated customer support team, as well as in-app tracking tools. Customers who sign up for Amazon Local Register before October 31 will also receive a low promotional rate of 1.75 percent per card swipe on all major credit and debit cards until January 1, 2016. Additional details are available at localregister.amazon.com.

“From clothing stores to contractors, food trucks to accountants, businesses and organizations 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.”

Customers can get started with Amazon Local Register in three simple steps: create an account on localregister.amazon.com, purchase a $10 card reader, and download the free mobile app from Amazon Appstore, Apple App Store or Google Play. Starting today, the card reader is available with Free Two-Day Shipping on Amazon.com. Beginning August 19, customers can also purchase a card reader at Staples retail locations nationwide. The Amazon Local Register card reader and free mobile app are compatible with a variety of smartphones and tablets, including Apple devices running iOS7, Kindle Fire tablets, select Android smartphones, and coming soon to the new Fire phone. Each customer’s first $10 in transaction fees will be credited back to the customer’s account once Amazon Local Register is in use – allowing customers to fully recoup the cost of the card reader. Money from transactions can be deposited directly into a bank account within one business day, or spent on Amazon.com within minutes – see the website for more details. Amazon Local Register also provides:

  • Exceptional value: Amazon Local Register accepts all major credit and debit cards for a low, flat rate with no hidden fees. Plus, there are no long-term contracts. Customers who register before October 31 will receive a low promotional rate of 1.75 percent per card swipe until January 1, 2016. Customers who sign up after this promotional period will pay a flat rate of 2.5 percent on all swiped transactions.
  • Amazon customer support: Access the award-winning, fully dedicated customer support team, available by phone and email. Plus, Kindle Fire HDX owners can take advantage of the Mayday button to connect to an Amazon tech advisor 24 hours a day, 365 days per year – for free.
  • Secure and stabilized card reader: A stabilized card reader limits swivel, making it easier to swipe once and go. Plus, each transaction is backed by the same services that securely power Amazon.com purchases.
  • Business tracking tools: In-app reporting enables a business to quickly check bottom line performance, sales trends, peak sales times and more. All reporting is easily accessible from a smartphone or tablet and is password-protected.
  • Compatible accessories: Shop for compatible accessories including cash drawers, receipt printers, smartphone cases and stands. Find everything needed to build a point-of-sale system including massive selection, available at the best price, all on Amazon.com.

Early users of Amazon Local Register share their experiences:

“Amazon Local Register has simplified, organized and improved efficiency for my business. The feature I am most impressed with is the outstanding customer support I receive any time I have a question or for whatever help I need. The reports are easy to understand and help me figure out how my business is performing.” Erin H, hair & makeup artist

“I’m always looking for ways to reduce my business expenses. Amazon Local Register’s low price means that I can invest more in my business, while still ensuring that I’m accepting customer payments safely and securely.” Kevin L, gallery and event venue owner

“My customers used to always ask if they could pay with a credit card and I always said no, as it always seemed too complicated to set up. It was easy to get started with Amazon Local Register, and taking payments is a breeze. My customers are VERY happy and prefer to pay with their card. Another benefit is that I don’t have to deal with going to the bank to deposit cash and checks.” Jannine H, massage therapist

About Amazon Local Register

Amazon Local Register, a service of Amazon Payments, Inc., is a mobile point-of-sale solution that allows you to accept credit and debit card transactions from a smartphone or tablet. Find more details at localregister.amazon.com.

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11 Responses to “Amazon takes on Square and PayPal Here with $10 iPhone/iPad cardreader & lower fees”

  1. Swipe? How positively 1988. They do have the best functioning dongle by all appearances, but no one uses the mag stripe except the US – and that’s already started to change. They really should have jumped out in front of the pack and announced support for chip+pin at the same time – contactless (tap and pay) would have made it sweeter still.

    I’m just surprised it took this long for them to come to market – it was always an easy task to crack open any other card reader and copy its innards.

    None of these solutions however are terribly fascinating to folks involved in online sales – this is where we need competition today. PayPal leads the industry as no one else comes even close to their offerings. They need someone like Square and Amazon to offer the same level of simplicity, self-branding (stealth branding) and competitive CNP (cardless) rates.

    Like

  2. Reviews are saying the setup procedure requires one to create a new Amazon account for the payments, even if you have an existing one (not sure if that’s really true).

    Also, I do find it odd Amazon is jumping in at this point and not support chip-and-PIN. Yes, in the U.S. swipe-and-sign is still prevalent but things are shifting. I just got a newly replaced new credit credit which is now chip-based. Furthermore, Square is actually getting ready to release a reader supporting this so that’ll quickly put Amazon behind the curve in this regard.

    Liked by 1 person

  3. It’s funny how Amazon doesn’t even include its own Fire phone in any of the slider images on the microsite for their own payment system. You would think they would be trying to push that phone on every level they could, despite its failed market entry.

    Liked by 1 person

    • Laughing_Boy48 says:

      Amazon pushing that Fire Phone will be absolutely futile. I’m sure very few consumers will buy some Fire Phone just because it works well with Amazon’s store and can play some 3D games. It seems unlikely 3D will catch on in the near future. What gets me is how Amazon continues to undercut rival prices, lose more money and yet the share price still climbs. It’s as though Bezos has figured out a way to create a magic investment out of losing money.

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  4. myke2241 says:

    lower fees… of course and operating at a loose for market share. not surprising. i really think Amazon is starting its decline. fire phone and now this. what other me too way too late product is coming next?

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  5. After charging for the product, a message comes up and says. “You could have got this on AMAZON for cheaper”

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  6. fees rule for merchants. end of story!

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