Amazon Local Register is a payment system aimed at small businesses. The two biggest competitors Amazon will face in the market are Square and PayPal.
Amazon is recruiting customers aggressively though. Like their e-commerce strategy they are looking to win customers on price.
Businesses signing up before October 31. will only pay Amazon 1.75% of each transaction. The fee is locked in until January 1st 2016. Companies signing up after October 31. will be charged 2.5% of each transaction which is still less than what Square (2.75%) and PayPal (2.7%) take from their customers.
The Amazon card reader will cost $10 but that fee is refunded with the first transactions.
Amazon is looking to capitalize on the strong growth within the mobile payment segment as analysts predict it is going grow to over a trillion dollars within the next five years. The question is if Amazon can be profitable in the space. They have been under a lot of pressure from investors recently as their losses continue to mount.