Amazon.com has introduced a card reader coupled with smartphone and tablet apps that aim to provide small businesses with a way to accept payments on these devices.
The company is positioning its Amazon Local Register as a secure card reader and mobile app that will provide local businesses a broad set of tools to accept credit and debit cards through a smartphone or tablet and keep track of their operations, it said Wednesday.
The service can only be used to accept payments in the U.S., and a U.S. bank account is required for transferring funds from the Amazon Payments account to the user’s bank account.
At least in the short term, this is excellent news for both consumers and small businesses, as Amazon will push down the per transaction fee, down to 1.75 percent per swipe til the end of the year, then rising to 2.5 percent per swipe.
Square collects a fee of 2.75 percent per swipe, while PayPal Here charges 2.7 percent per swipe transaction in the U.S. and Intuit’s GoPayment starts at 1.75 percent per transaction.