The future is quickly coming our way with many company’s such as Google, Paypal and Square taking over the point of sales (POS) and launching it into the digital space of smart phones and tablets. Amazon recently launched a new product, Local Register, similar to Square, which will allow sellers and consumers to process transactions without having to go to a POS station. POS stations are quickly becoming obselete with their clunky bases and non-portable aspects. Sure, we’ve got TD making portable Moneris machines, but what if you can have your entire company log and information on one machine as opposed to a small hand held dock that only accepts payments? Enter Local Register.
Similar to Square, Amazon offers a Local Register dongle that allows sellers to attach them to an iPad or iPhone or Android device where customers can swipe their cards for a transaction. The Local Register program also tracks spending trends for sellers, giving them analytics in return without having to use other programs.
So what’s so amazing about Local Register that makes it better than its competitors? In the POS world, every time you swipe your card, a certain percentage gets taken away by the company running the program. Card swiping is a subscription service for sellers that allows them to make money, but the companies running the programs have to be able to make a profit too right?
What About Transaction Fees?
At the moment, other companies such as Square, Paypal and Google Wallet charge a 2.75%, 2.7% and 2.9% fee per transaction. It may not seem like much, but in the world of business, every cent counts. Until January 1, 2016, merchants that utilize Local Register will only be charged a 1.75% fee. If you add it up over a year, that could mean a net income of much much more.
What’s in there for Amazon to
And while their dongle costs $10 to purchase, you as a merchant can basically erase that cost on your balances as negligible since it’ll be replaced with $10 in transaction credits. Is Amazon basically giving away a free POS service? The answer is yes. So what does Amazon seek to gain out of this? Well the era of chunky POS systems will soon be eradicated with smartphones and tablets. By jumping into the game this early on, Amazon will secure itself a position in the top tier of the POS elite for the years to come.
By 2016, mobile POS systems will have replaced 12.4% their traditional counterpart. And the global market for both the software and hardware will be worth $3.2 and $31.5 billion respectively. That’s some big money ready to be rolled in.
Not only will Amazon be selling their dongle, but cash drawers, receipt printers and iPad docks will be available so that merchants can buy what they need to build their own POS hardware. Amazon also aims to recirculate the money flow back into their own online merchandising website. So while merchants will instantly receive their funds, it goes directly into their Amazon accounts which are hooked up to the program, and this encourages the merchants to purchase more from Amazon.
Sneaky move Amazon, sneaky move.
[quote_center]Have you ever purchased a mobile POS program or will you?[/quote_center]
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