Amazon to Launch Mobile Credit Card Reader

Amazon is set to release a mobile-based credit card reader similar to existing payment devices from Square and PayPal, according to leaked documents obtained by 9to5Mac.

The online retail giant will be launching the hardware in the next few weeks, with internal Staples - the stationery and office equipment specialists - documents signalling 12 August as the date to introduce new signage in its stores advertising the "Amazon Card Reader".

The device, likely to connect to smartphones in a similar way to that of Square's mobile card reader, will reportedly cost $9.99 (£5.90). This is less than the $15 that Staples currently charges for Paypal's 'Here' mobile card reader and its own-brand card reader.

Square offers its device free-of-charge to users, but charges a fee between 2.75% and 3.5% for each transaction processed.

Amazon has been contacted by IBTimes UK but is yet to respond to a request for comment on the latest rumours.

Amazon has launched its own Mobile Wallet app for Android, leading to speculation that the forthcoming card reader will work in conjunction with its digital wallet. Currently, Amazon's Mobile Wallet does not support credit or debit card payments.

9to5 Mac also reported that sources had revealed the company was also developing its own biometric payments solutions.

Amazon's Lab126 hardware division is working on incorporating fingerprint scanners into the payments process, according to the publication, whereby retailers use technology based on Touch ID to verify payments.

Amazon recently reported a large second-quarter loss despite raking in $19.3 billion in revenue between April and June. The firm will be hoping that new hardware products like the recently launched Fire smartphone will help improve its margins.

In a conference call to discuss the recent results, Amazon chief financial officer Tom Szkutak said that the company had a "tremendous amount of opportunites" ahead of it.