Amazon Discontinues Its Mobile Credit Card Reader
After only a year on the market, the mobile card reader known as “Amazon Register” is being pulled from the virtual shelves. Amazon announced it will be discontinuing its mobile payment processor as of February 1, 2016.
Amazon Register was introduced in August 2014 to compete with other card readers such as Square and PayPal Here. At the time, there was great promise for Amazon Register because of its low fees and user-friendly application. Business owners received a small credit card reader that allowed them to accept card payments from their phones or tablets. Amazon undercut Square’s transaction fees to lure customers by offering a promotional fee of 1.75%, which then increased to 2.5%. Square’s transaction fee was 2.75%.
The success of the device was short-lived though, and the company has decided to focus its efforts elsewhere. An Amazon representative told Forbes, “We periodically evaluate our offerings to ensure that we focus on delivering unique benefits. And in this case, we’ve decided to discontinue Amazon Register.”
Before the service is shut down, Amazon suggests current customers take the following steps:
- Find a new service and begin transferring funds.
- Download a final transaction history before February 28, 2016. After that date, users will no longer have access to their history.
- Make sure that all funds have been transferred to their bank account by February 28.
Last week, Amazon also announced it was dismantling its Amazon Local service. Much like Groupon, Amazon Local advertised deals and products from local merchants. According to the website, products will continue to be offered until December 18. After that date, any vouchers that were purchased will still be honored.