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Amazon readying mobile payments service based on Kindle tablet

Amazon Kindle could find a way into land-based checkout systems as the company reportedly looks at implementing tablets in order to facilitate in store transactions.

Related: How mobile technology is shaking up the payments industry

The Seattle-based company could give shops Kindle tablets and credit card readers, according to people briefed on the plans quoted by the Wall Street Journal, with other services, such as website development and data analytics, also part of the package.

Rumours that Amazon is looking to enter the commerce market come after it bought certain technology from GoPago, a startup that offered checkout systems linked to a smartphone app, which is now a unit of DoubleBeam LLC.

The same source stated the GoPago deal was done to accelerate the project but that the plans remain fluid and the project could be delayed, altered or even cancelled.

Mobile payments is an increasingly competitive sector and could be seen by Amazon as a way to take a chunk of the physical commerce market that is still worth 90 per cent of all commerce conducted. Further to this, two of the people familiar with the plans stated that Amazon is looking to implement a mobile wallet with stored credit card details that will speed up payments and challenge others in the same space.

“The game of mobile payments is going to be won or lost at the physical checkout, that's where nearly all of commerce is done today," said Richard Crone, chief executive of Crone Consulting, a payments advisory firm. "At the end of the day, a merchant wants to make a sale, to drive up business. And if Amazon or anyone else can help them do that, that's tough to turn away."

When it comes to persuading retailers to work with them, Amazon is considering letting them offer promotions and discounts through or its daily deals service Amazon Local, according to people briefed on the plans.

Related: Rumour: Apple put foot in the door of mobile payments industry

Amazon could be on a collision course with Apple in the mobile payments space after rumours mentioned that the Cupertino based firm is also looking to make its first moves into the sector.