Amazon.com, Inc. (AMZN)’s Local Register Will Eat Into Mobile Payment Market

Amazon.com, Inc. (NASDAQ:AMZN) is all set to take on the burgeoning market of offline payments with its latest offering, the Amazon Local Register. This is a $10 dollar card reader which can be plugged into a mobile device or tablet. It comes with a free app that allows merchants to accept both credit and debit cards. Neil Doshi, Managing Director of CRT Capital Group and Christina Warren, Mashable’s Senior Tech Analyst discusses the online retailer’s foray into the mobile checkout market with Trish Regan on Bloomberg’s Street Smart.

Amazon.com, Inc. (NASDAQ:AMZN)

With the Local Register, Amazon.com, Inc. (NASDAQ:AMZN) is entering into a market in which Square and eBay Inc (NASDAQ:EBAY)’s PayPal are already established players. But Doshi said that there is a big opportunity for Amazon by undercutting competition.

“[...] They have 240 million customers. 40 % of goods on Amazon are sold by third party merchants. So the next big step for them is to move payments offline,” he added.

Amazon.com, Inc. (NASDAQ:AMZN) might win over Square by dint of its sheer volume, the latter being just a startup and might not have enough capital to compete with a giant like Amazon. Most of its customers save credit card information on the Amazon website. So, when the same card is used in an offline purchase using Local Register, Amazon.com, Inc. (NASDAQ:AMZN) might be able to use this information to suggest products related to the purchase.

Warren noted that brand factor might not really matter in selecting the method of payment process as long as it is secure.“It really doesn’t matter to the proprietor what they’re using. They want to get the best deal that they can and customers want to pay with their credit card ideally. They don’t necessarily want to pay with their Amazon account,” she explained. So, ultimately, what matters the most is if the deal is good enough for the merchant.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!