The new system can handle both online and offline transactions and can also link to other services including Prime and Flex, the report added, citing an internal document. (https://bit.ly/3l7r7ZG)

The move will allow Amazon to compete with Canada's Shopify and U.S. payments giant PayPal, which already offer POS systems for payments for small businesses, that have moved online during the pandemic to boost sales.

Project Santos, created by an internal Amazon team to compete with Shopify, is leading the project, the report said.

Amazon declined to comment.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber)