Amazon to launch mobile payments service for small business

Amazon is getting ready to launch a mobile payments platform running on Android and Apple smart phones and tablets that could compete with Square, Intuit GoPayment and PayPal.

To jump-start the new mobile payment effort, Amazon will undercut the competition (who’s fees average 2.8%) with an introductory merchant rate as low as 1.8 percent.

While formal pricing and the name of the new service is still under wraps, we expect to see a formal announcement within the next few weeks.

Photo: Square at the 2012 Consumer Electronics Show in Las Vegas