The biggest online retailer in the world – Amazon.com Inc. revealed its Amazon Local Register, making its first steps in the mobile-checkout market. The company is challenging some start-ups such as Square Inc. with its Amazon Local Register – a new free smartphone and tablet application and $10 card reader that plugs into a handheld device.
Recently, more and more local companies have become more oriented towards making the process of accepting credit cards easier. As Amazon.com Inc. revealed in its official statement, now the company is presenting its application that is to provide merchants with the opportunity to accept major debit and credit cards and check data including sales trends and bottom-line performance.
One of the analysts, who work at 451 Research – Mr. Jordan McKee commented on the companys announcement for the Wall Street Journal: “Amazon isnt going to be making money on the payments processing. This is about being a presence in physical stores where so much of commerce is conducted today.”
As explained by the online retailer, Amazon Local Register is a mobile-payment service and smartphone-compatible credit-card reader. The new companys service is entering the fierce competition of some companies such as Intuit Inc., eBay Inc and Square Inc.
The move is considered part of the companys strategy to strengthen its presence in physical stores. Amazon.com. Inc. plans to fight against its competition with special “promotional” rates for businesses that sign up before October 31st. The promotional charge amounts to a commission of 1.75% from every transaction on the new system until January 1st 2016. After the promotional period, the commission will amount to 2.5%.
Amazon.com Inc. is said to target mainly food trucks and mom-and-pop shops and other brick-and-mortar retailers. Still, it would have to overcome not only the solid rivalry in the segment, but also the mistrust of some merchants, who believe Amazon has been undermining in-store shopping.
Amazon.com Inc. was 2.18% up to close at $326.28 per share yesterday. The companys shares have gained 10.99% over the past year, valuing Amazon at $150.75 billion. According to the information published on CNN Money, the 36 analysts offering 12-month price forecasts for Amazon.com Inc. have a median target of 392.50, with a high estimate of 460.00 and a low estimate of 325.00. The median estimate represents a +20.30% increase from the last price of 326.28.
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