Amazon launches Square and Paypal competitor

Amazon launches Square and Paypal competitor

Amazon has launched a mobile payment service for physical stores. World's largest online department store is not in it for the money per say, but would like to get more information about consumer spending.

Cheaper than PayPal and Square

'Local Register' is how Amazon has called its mobile payment service and it uses a card reader attached to a consumer's smartphone or tablet. With the appropriate app, consumers would be able to pay through their credit card.

 

Amazon is hoping to lure American retailers into the new system with lower commissions than its competitors. It only charges 1.75 % while PayPal uses 2.7 % and Square asks for 2.75 %. The lower rate only applies to those that join before October, because from that moment on, it will charge 2.5 % - which is still the cheapest of the three.

 

"Amazon will not earn money through the payment transactions", according to a specialized consultant in The Wall Street Journal. According to him, Amazon is mostly interested in information about consumer spending in physical stores - especially as these still represent 90 % of all American purchases.

Questions or comments? Please feel free to contact the editors


Aldi will home deliver in the United States

16/08/2017

In the United States, German discounter Aldi will start one-hour deliveries for online orders thanks to the support of American startup Instacart. Amazon’s reaction: “You will be able to pick up your order within two minutes from now on.”

Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Amazon's profit takes enormous hit

28/07/2017

American Amazon’s profit plummeted in the second quarter and is also lower than what analysts had predicted, despite a 25 % turnover increase.

Amazon: a looming problem for other retailers

27/07/2017

Those who thought Amazon’s growth would slow down, were wrong: the company is now worth more than 500 billion dollars. The Amazon effect is even troubling other retailers and investors. How should they react?

Back to top