Thursday, September 27, 2012
Amazon Could Be Working On A Square Competitor
Rumors have been coming in that Amazon is readying a mobile payments product that could compete with Square, Intuit GoPayment and PayPal Here. A tipster and an industry source both tell us that Amazon is going after smaller chains of retailers for the product, and could be offering significantly lower credit card processing fees for merchants. Rumors are that Amazon could be offering a rate as low as 1.9 percent. Current offerings include fees of around 2.7 percent. So what could this mean? It would make sense for Amazon to enter this market and transition from powering online transactions and checkout to in-store transactions. Amazon already has a payments infrastructure in place with its own PayPal competitor, Amazon Payments. Of course, it's important to note that PayPal has much more reach and usage from independent online sites than Amazon Payments. It will also be interesting to see whether Amazon will go after smaller, individual merchants, which would play right into Square's bread and butter.