'Pay With Amazon' Buttons Coming To Third-Party Mobile Apps | Business News

‘Pay With Amazon’ Buttons Coming To Third-Party Mobile Apps

1 Nov 2015 | Author: | No comments yet »

Amazon Shutting Down Its ‘Register’ Credit Card Processor.

Amazon, the online retailing giant, quietly killed its credit card reader service for small and medium-size businesses, a move that seems to scale back the company’s ambitions of going after micromerchant processing services.

The e-commerce giant is bringing its “Pay with Amazon” buttons to mobile apps, while “tripling down” on placing its Pay with Amazon buttons on websites in overseas markets like Japan. The moves are the latest in the company’s on-again, off-again efforts to take advantage of the more than 200 million customer accounts it has on file by processing payments on websites outside of its own walls. The company has also said there are plenty of transaction types that aren’t competitive with Amazon; one of its most well-known payment clients in the U.S.is GoGo, the Internet provider on commercial flights. Aimed at mom-and-pop merchants, the $10 plastic device plugged into a smartphone or tablet and, with an app, processed credit card swipes from customers. Last August, Amazon debuted Register, a card reader and mobile app that can be used by businesses to process credit card transactions through mobile devices.

Earlier this year, Amazon hired PayPal vet Patrick Gauthier to lead a newly created team dedicated solely to building a payments business across the Web and app world. Amazon had already amassed 294 million active customers as of third quarter, which is expected to benefit it as it attempts to process payments on other websites, not owned by it. Register is a credit card-reading device that plugs into smartphones and was intended to compete with other low-cost mobile point-of-sale systems aimed at small businesses — like Square, PayPal, and Etsy.

And the same line of questioning has hung over Amazon’s payments efforts at each turn: How many online shops will really want to get in bed with Amazon, which sells everything under the sun, and let it get a view into their transactions? Amazon has long downplayed this critique, telling Re/code last year that there’s a barrier between the external payments business and the rest of the company, and that Amazon only sees transaction totals, not the specific items in each order.

At this time, we have decided to discontinue the Amazon Register service.” The move looks to be a part of a wider shuttering of locally-based products and services. The company didn’t offer much in the way of explanation for the closure: “Amazon is constantly testing and launching new services to innovate on behalf of our customers. Amazon’s new head of external payments, Gauthier, reiterated this defense in an interview earlier this week, saying the worst label an Amazon project can carry is “trust-buster.” He also pointed to the growth of the Amazon Marketplace, where outside merchants sell their goods competing against Amazon itself, as an example of Amazon doing good by other merchants.

The third-party marketplace now accounts for 46 percent of all goods sold on Amazon. “What do you think would happen to that business the instant we became even within a mile of breaching the trust of those merchants?” he asked rhetorically. And at the time, Amazon’s reader came with an enticing offer: For a time, the company would charge a full percentage point less than competitors like Square, which is on the precipice of an initial public offering, on each credit card swipe. Gauthier further explained this by saying, “What people never realize or truly understand about Amazon is that part of the recipe for success is daring to try things you have no idea whether will succeed or not”. Amazon only has a handful of well-known payments clients, including the contemporary fashion retailer All Saints and bicycle and watch seller Shinola.

The in-app payment method is also nowhere as smooth as Apple Pay; Amazon shoppers are booted out of the shopping app they’re using in order to confirm their payment details on Amazon’s mobile website. It’s a huge range, he acknowledged, but he made his goal clear: Sign up merchants that are big enough to have an impact, but that aren’t Amazon’s very biggest competitors.

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