Tomahawk, WI 08/14/2014 (Basicsmedia) – Amazon.com, Inc. (NASDAQ:AMZN) has unveiled ‘Local Register’ its mobile payment service that looks set to compete against the likes of PayPal and Square in the mobile payment space. Local Register essentially allows small merchants take payments from customers who make payments via their Smartphone and tablets. Re/Coder Senior Editor, Jason Del Rey, expects Amazon to have a smooth ride in the space at the back of its huge market size that should work to its advantage.
Amazon.com Inc. (NASDAQ:AMZN) market share in the online segment essentially gives it the ability to invoke competitive pricing for its care-reader system sure to undercut the likes of PayPal and Square. Competitive pricing, on the other hand, looks set to work to the advantage of users who would look for an opportunity to jump out of Square when offered a better deal in terms of pricing.
“Yes this is a long-term gain for them right now so they can come in. Market gives them the least to do so. Undercut competitors on Pricing, and undercutting their doing is a big deal for small businesses that are looking at you know a big jump in pricing when they are looking at Square and PayPal from What Amazon can offer” said Del Rey in an interview on CNBC.
Del Rey believes that Square might not be threatened by Amazon.com, Inc.(NASDAQ:AMZN) especially in terms of pricing, taking into consideration the fact that it has over 1-million customers in terms of businesses. Square might think about adjusting its prices six months from now according to Del Rey if the pressure from Amazon becomes too much.
“You know Square has over a million customers right now business customers right now, so I think they are feeling okay about their positioning, but I think they will start feeling pressure over the next six months they have to at least think about that, “said Mr. Del Rey
Amazon.com, Inc. (NASDAQ:AMZN) main goal with Local register is to bring more merchants into its ecosystem with a view of selling them in its website over the long-term. Amazon looks set to be the company with the much-needed finance able to challenge square, many having done the same without success.