Amazon Pulls Its Credit Card Reader

Amazon will discontinue its card reader in the latest cut to its device family.

The Register, which connected to a mobile phone or tablet to allow small businesses to accept payments via credit or debit card, will no longer be accepting new customers as from October 30.

Existing customers can still use the device until February 1, when Amazon will suspend all services including refunds and payment processing, with users then having to find an alternative, such as competing products from iZettle or Square.

Swiped

Amazon launched the Register (pictured left) last year in order to compete with the likes of Square, which had capitalised on the growing demand for card payments from small businesses.

The e-commerce giant even set out to undercut Square’s processing fees, charging 2.5 percent per transaction, compared to Square’s 2.75 percent, which could be lowered to 1.75 percent when using a special promotion.

Users will now need to transfer any funds out of their account to their own banks, with the deadline set for February 28, from which date they can access any remaining balance and set up bank transfers through an Amazon Payments account.

Register is the latest Amazon project to hit the bricks recently as the company cuts down on some of its less successful products.

The most notable recent casualty was the company’s Fire smartphone, which was pulled back in September after months of poor sales. First released in July 2014, the device promised much, including powerful specifications and a 3D interaction function, as well as dedicated Amazon apps and linkage, but was hindered by a crowded marketplace and high price point.

Recent reports also claimed that Amazon was scaling back its overall device ambitions following major job cuts at Lab126, the hardware division which was responsible for the Fire phone.

However the unit may still work towards producing future mobile devices, such as a rumoured augmented reality headset, as the sources said that Lab126’s phone unit was apparently merged with the tablet and e-reader team following the struggles of the Fire phone.

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