Amazon.com, Inc. (AMZN)’s Local Register Will Bring More Merchants Into Their Ecosystem

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Amazon.com, Inc. (NASDAQ:AMZN) launched its mobile-payment service and smartphone-compatible credit-card reader on Wednesday. Amazon.com, Inc. (NASDAQ:AMZN) has started this mobile payment service to tackle its competitors like PayPal, Square and other payment services company. Mobile payment service is another attempt from Amazon.com, Inc. (NASDAQ:AMZN) to craft its online shopping ecosystem which can offer merchants a one stop package. Discussing Amazon’s new release in a program on CNBC, Jason Del Rey, Re/Code senior editor, said that Amazon has plans to build the online shopping ecosystem and its competitors like Square and PayPal are likely to face problems in the future because of this step from the e-commerce giant.

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“This is a long term game for them right now, so they can come in. Market gives them the leash to do so, undercut competitors on pricing, and the undercutting they are doing is a big deal for small businesses, that are looking at, you know, a big jump in pricing when they look at Square or Paypal now from what Amazon can offer,” said Rey.

Rey said that at the moment, Square does not have any threat from Amazon, but there is a chance that it will start feeling pressure from the likely growth of Amazon.com, Inc. (NASDAQ:AMZN)’s payment system. He said that Square must have a plan and strategy to tackle the popularity of Amazon’s payment system in the coming months.

“Amazon.com, Inc. (NASDAQ:AMZN)’s goal right here is to bring more merchants into their ecosystem, so they start by handling their payment transactions then they try selling them on the Amazon marketplace, or buying equipment from Amazon, so they are already packaging together deals for these businesses,” said Rey.

Rey said the Square has over a million business customers right now so they don’t have to make any price cuts to catch up right now.

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