It has been rumored that Amazon.com, Inc.(NASDAQ:AMZN) might bring out a mobile payments service sometime soon. This payment service, if the rumors are true, might give stiff competition to other online payment services such as Square, PayPal, Go Payment and Inuit. Apparently, Amazon will be targeting smaller chains of retailers, and the card processing fee will also be abnormally low. It is rumored to be about 1.9%, while the lowest of the current rates are around 2.7%. It is also said that Amazon will be giving out low card processing fees for merchants.
Will AMZN Move Back To New Highs Soon? Find Out Here
This means that Amazon will soon be stepping in from online transactions as well as checkout, to the world of in-store transactions. Amazon, however, already has a payments service which is called Amazon Payments. This is one of the competitors for PayPal, although, to be fair, PayPal has a much larger exposure base, and is much more popular.
If, with this new mobile payment product, Amazon does indeed target the small merchants, and especially the individual ones, then the company will be cutting into a large chunk of Square’s client base. But apart from that, Amazon also wants to dip its fingers into the physical world of retail stores. The company, it is said, will be launching a chain of retail stores, which could, as its payment systems, have mobile payments, as well as credit card processors.
The technological reach is fast spreading beyond big companies and big business transactions. The importance of being connected on the go, and the importance of online transactions are being felt by most people, and especially by those in business. The opportunity to power mobile card payment systems as well as point of sale for merchants, in such situations is a huge one, and Amazon will do well if it does start up the mobile payments system. Although monetary transactions over smartphones or other gadgets is not quite as common with small scale businesses, it is on its way to catching on fast. Most merchants want to buy tablets or smartphones in order to conduct more business through these devices.
Shares of AMZN are down 0.55% to $255.06. The stock has witnessed solid gain so far this year with a rise of 47% and had made an all time high of $264.11 earlier this month.