Amazon has launched a credit card reader and mobile app called Local Register, in a major entry to mobile payments.
Businesses can buy the card reader for $10, later reimbursed through product fees, and download the mobile app for free on Apple iOS 7 devices, select Android phones and Kindle Fire tablets.
Matt Swann, VP of Amazon Local Commerce, said: "We understand that every penny and every minute counts, so we want to make accepting payments so easy and inexpensive that it no longer gets in the way of a business owner doing what they love - serving their customers and growing their business."
Users of the card reader will be subject to flat rates, with those who register before October 31 offered 1.75% per card swipe until 2016, and later customers paying 2.5%.
Both these prices are lower than the rates of competitors Square and PayPal, who charge 2.75% and 2.7% respectively.
All major credit and debit cards are compatible with the reader, and the app will allow businesses to check sales trends and company performance from phones or tablets.
Free customer service is offered to all businesses who sign up, with Kindle Fire HDX owners given year round support for 24 hours a day via the firm's "Mayday" button.