Thursday, August 14, 2014

Amazon Moves into the Mobile Payment Space

Payments using mobile phones has been an area receiving a lot of attention over the past couple of years. But nobody has really broken heavily into the market, despite several prominent entries, such as Square and Paypal Here.

Paypal in particular is a powerhouse in the e-commerce payments area and has had a significant advantage in moving into mobile payments.

That advantage will be diminished with Amazon's entry, Local Register.

The system will be used with a card reader that will enable credit cards to be swiped on a mobile phone. The card readers will be available at various outlets, including Staples.

Initial resistance both from shoppers and merchants because of complexity and security issues is slowly fading, so the mobile payments market is widely seen as a major one. Successful providers will be able to make massive revenues from transaction fees. And the volume of retail transactions is staggering.

For more on this new service, check this link, and this one.

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