Amazon unveils new credit card-swiping device
PayPal and Square get some competition
On Wednesday, Amazon.com Inc debuted its new $10 credit-card reader which plugs into a phone or a tablet, and mobile app for brick-and-mortar businesses.
The latest step by the online retailer is to expand its presence in the physical world, putting Amazon up against a number of rivals, such as startup Square, and the famed PayPal.
However, Amazon has the upper hand as retailers that start using Amazon's card reader, called 'Amazon Local Register', before October 31 will pay a rate of 1.75 percent on transactions, versus 2.75 percent for Square and 2.7 percent for PayPal. At the close of the promotional window, the rate will rise to 2.5 percent, still maintaing the lowest price.
Retailers can sign up for Amazon Local Register for free, but must pay $10 for each card reader. The system will also generate detailed customer reports that will give both the retailer user and Amazon a new understanding about the habits of its shoppers.