Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: JustOneT One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 58831  
Subject: Disrupting Payments & Brick/Mortar Date: 9/27/2012 3:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
TechCrunch staff writer, Leena Rao is reporting information on Amazon looking to enter the Square, PayPal, etc space with a competitive expansion of Amazon Payments processing system that would be competitively offered to brick & mortar retailers. My daughter has a retail cafe and merchant service processing for payments is a hot topic for her and many others. Her current fees average 4.5%. Square looked good at 2.75% flat and Amazon is rumored to be looking to bring a competing offering at 1.9% flat fee.

Merchant payment processing is being disrupted on many fronts. It will be interesting to see how it all shakes out.

Blessings,
scot

Here is the article:

Amazon Could Be Working On A Square Competitor
Leena Rao, 2012/09/27, 1:00pm

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.

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.

It’s no secret that Amazon has been eying the in-store physical, retail world. The company is reportedly looking to launch a number of retail stores. A credit card processor and mobile payments device could power payments at these stores.

And the opportunity to power mobile credit card payments and point of sale for merchants is huge. As Allthingsd reported a few weeks ago, a recent survey by the National Retail Federation found that while only 6 percent of retailers said they used mobile point-of-sale devices, half of respondents said at the time that they planned to adopt such devices over the next 18 months. Further, 75 percent of U.S. merchants revealed that they want to buy a tablet over the next year.

This isn’t the first time rumors have surfaced that Amazon is looking to power payments: last year, Bloomberg reported Amazon was exploring a NFC-powered mobile payments service, but no such product has been released.

A spokesperson for the company issued us this canned response: “We do not comment on rumors or speculation.”
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement