Dive Brief:
- Amazon is offering free Square credit card readers to users of the Amazon Local Register, a similar plug-in device for mobile payments.
- The marketplace discontinued support for its card-reader payments service effective Feb. 1, and worked with Square to issue the replacement offer.
- Amazon is moving forward on Pay with Amazon, which streamlines online and in-app purchases.
Dive Insight:
Amazon has capitulated in its effort to compete with Square, the provider of the popular plug-in swipe terminals retailers can use to take payments via smartphone and tablet. The marketplace company abandoned support for the service Feb. 1, and is now offering to replace Amazon Local Registers with free Square terminals, a $10 value.
Square worked with Amazon on the promotion, solidifying its position as the leading plug-in mobile terminal for on-site payments. For its part, Amazon will concentrate its efforts on digital sales by bringing “Pay with Amazon” features to online storefronts and apps, challenging PayPal.
It’s a big win for Square, which went public late last year with a lower-than-expected valuation for a tech “unicorn.” Square revenues were up 6% in the first three quarters of 2015 to reach $892.8 million, but while its card readers and other offerings are innovative, the company has yet to turn a profit.