Last year, Amazon launched a new card reader and mobile payment system similar to Square called Amazon Register. This innovative service aimed to provide a cost-effective solution for small businesses and retailers to process credit card transactions. However, despite its competitive pricing, Amazon has announced that the service is being discontinued.
Amazon Register: A Brief Overview
Amazon Register was introduced as a direct competitor to Square, offering a lower transaction fee of just 2.5 percent compared to Square’s 2.75 percent. This lower fee was designed to attract small business owners looking to save on transaction costs. The service included a card reader that could be attached to smartphones and tablets, allowing merchants to process payments on the go. Additionally, Amazon Register provided detailed sales reports and analytics, helping businesses manage their finances more effectively.
Despite these advantages, it appears that Amazon Register did not gain the traction Amazon had hoped for. The mobile payment market is highly competitive, with established players like Square, PayPal Here, and Intuit GoPayment dominating the space. These competitors have built strong brand recognition and customer loyalty, making it challenging for new entrants to capture significant market share.
Effective October 30, 2015, we are no longer accepting new customers. Existing customers can continue to use Amazon Register until February 1, 2016, when we will discontinue the service. We regret any inconvenience that this may cause.
What is happening to Amazon Register? Existing customers can continue to use Amazon Register until February 1, 2016. After that date, we will discontinue Amazon Register. We regret any inconvenience that this may cause.
Impact on Existing Customers
From February 1, 2016, users of Amazon Register will no longer be able to process transactions. This discontinuation means that businesses relying on Amazon Register will need to find alternative payment processing solutions. Amazon has not provided specific reasons for discontinuing the service, but it is likely due to the intense competition and the challenges of gaining a foothold in the market.
For existing customers, the transition may involve some inconvenience. Businesses will need to research and select a new payment processing provider, which could involve additional costs and setup time. However, there are several alternatives available that offer similar features and competitive pricing. For instance, Square continues to be a popular choice, known for its ease of use and comprehensive suite of tools for small businesses. PayPal Here is another viable option, especially for businesses that already use PayPal for online transactions.
Amazon’s decision to discontinue Register also reflects the broader trend of tech giants reassessing their ventures in highly competitive markets. While Amazon has seen tremendous success in e-commerce and cloud computing, not all of its initiatives have achieved the same level of success. The discontinuation of Amazon Register serves as a reminder that even industry leaders must continually evaluate their product offerings and make strategic decisions based on market dynamics.
In conclusion, while Amazon Register offered a promising solution for mobile payment processing, it ultimately could not compete with established players in the market. Existing customers will need to transition to alternative services by February 1, 2016. For more details on the discontinuation of Amazon Register, you can visit the link below.
Source: The Verge
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