Continuing its quest to dominate nearly every corner of the retail experience, Amazon.com today unveiled a new $10 credit card reading device called Amazon Local Register.
The card reader and mobile app represents a direct attack on Square, since Amazon is launching with a rate of 1.75 percent per card swipe. That’s a full percentage point below Square’s 2.75 percent rate. Amazon will run the promotional rate through Jan. 2016, at which time it will change to 2.5 percent.
The Wall Street Journal reported earlier this year that Square was running low on cash, considering a possible sale to Google, Apple, eBay and others. According to the report, Square lost about $100 million last year and has consumed about half of the $340 million in venture capital it has raised.
A business relationship between Square and Starbucks crumbled, with reports that the deal cost Square some $20 million last year.