Amazon has a plan to get into the mobile payments game

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Date: Friday, February 7th, 2014, 09:32
Category: Amazon, Finance, Mobile, retail, Services

amazon-logo-150x150It looks like Amazon is determined to expand out of the “virtual” retail space to get its foot in the door of brick-and-mortar stores. The Wall Street Journal reports that Amazon’s CEO, Jeff Bezos, has plans to0 equip retailers with Kindle tablets with credit card readers for accepting payments, possibly in exchange for web site development and data analysis. Trying to push its way into traditional retail spaces means Amazon will be pitting itself against much larger companies that provide checkout and POS (Point Of Sale) systems to large retailers, which may require Amazon to turn to smaller businesses. Even there, they are competing with companies like Square Inc., who have a big head start in that space. Amazon does have the benefit of allowing retailers that partner with them to offer promotions or discounts through Amazon.com or its Amazon Local daily deals offers. Amazon has a steep hill to climb, but Richard Crone who is chief executive of Crone Consulting, a payments advisory firm, makes a good point;

“At the end of the day, a merchant wants to make a sale, to drive up business. And if Amazon or anyone else can help them do that, that’s tough to turn away,”

Amazon will also be in a race with Apple, who is reportedly preparing its own blitz into the mobile payments game, offering the convenience of millions of customers with iPhones with the advantages of the iBeacon system. Even Amazon knows it’s not a sure thing. The WSJ mentions that, “Amazon’s plans remain fluid and the project might be delayed, altered or canceled, they said.”.

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