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Amazon is sunsetting its Square competitor

October 31, 2015, 1:15 AM UTC
BRITAIN-BUSINESS-RETAIL-AMAZON
A picture shows the logo of the online retailer Amazon dispalyed on computer screens in London on December 11, 2014. Online retail giant Amazon scored its first ever Golden Globe nominations -- a breakthrough in its bid to catch up with streaming pioneer Netflix. AFP PHOTO / LEON NEAL (Photo credit should read LEON NEAL/AFP/Getty Images)
Leon Neal — AFP/Getty Images

Amazon is shutting down its point-of-sale payments service, Amazon Register, according to an update on the company’s website. The service will no longer accept new customers, and existing merchants will only be able to use Amazon Register until February 1, 2016.

A spokesperson for Amazon confirmed to Fortune that Register would be shut down, effective early 2016.

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. It competes directly with Silicon Valley IPO hopeful Square, as well as PayPal Here, a mobile payments service from payments giant PayPal. At the time of launch, Amazon promised merchants lower card processing fees than other competitors.

Rumors has been swirling for years that Amazon was working on a mobile payments service that would compete directly with Square and PayPal Here. It made sense for Amazon to move beyond only powering online transactions, into in-store purchases. Amazon has already built an online wallet, Amazon Payments, to power transactions, though it’s not clear how it has fared.

But lower fees couldn’t replace Square’s four-year head start on Amazon. The company likely struggled to gain widespread usage of Amazon Register among small businesses, a segment Square has long dominated. Square says it has millions of merchants using its service, and processed $23.8 billion in payments in 2014.

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