Amazon (NASDAQ:AMZN) has introduced Local Register, a card reader and mobile app that assists local businesses in accepting credit and debit cards from a smartphone or tablet.
Retailers that sign up for Local Register will receive support from Amazon, as well as an in-app tracking tool, and a 1.75 card swipe rate on all credit and debit cards until Jan. 1, 2016, if the customer signs up by Oct. 31.
Local Register will be in competition with Square, PayPal and Staples' (NASDAQ:SPLS) private brand. Square's 2.75 percent per card swipe transaction (3.5 percent plus 15 cents for manual entry) is a full percentage point higher than Local Register's rate. Amazon's per transaction rate will go up to 2.5 (2.75 for manual entry) after the Jan. 1, 2016 deadline, reported TechCrunch.
"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, VP 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."
Retailers who sign up for Local Register must create an account on Amazon, download the free mobile app, and purchase a $10 card reader from the website or any Staples location in the United States starting Aug. 19.
Amazon's Local Register app also provides business reporting on peak sales and overall performance. Payments received through the platform go straight to the retailer's bank account the next business day and is available to use on Amazon's e-commerce portal almost immediately.
Amazon's Lab126 hardware division is busy at work. Last month the retailer launched the Wallet app for smartphones, as well as its first smartphone, the Fire Phone.
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