Groupon Enters Crowded Mobile Payments Field
Sept. 20, 2012
Daily deal website pioneer Groupon yesterday launched a mobile payments solution for all its U.S. merchants. Groupon Payments, a mobile credit-card acceptance platform, will compete with Square, Intuit’s GoPayment, PayPal Here and other mobile payment solutions. Groupon, which piloted the solution in San Francisco, aims to compete on price, charging 1.8 percent plus 15 cents per swiped transaction and 2.3 percent plus 15 cents per CNP transaction (compared with Sqaure, which charges 2.75 percent plus 15 cents for every swipe, and 3.5 percent plus 15 cents for keyed-in transactions). The solution is accessed via the Groupon Merchants app that also enables merchants to redeem Groupon vouchers using a mobile device.
The company has established an online payments center where app users can view their transaction history, track deposits and analyze revenue trends, according to a post on Groupon’s corporate blog by Mihir Shah, the company’s vice president of mobile and merchant products. Shah also said merchants using Groupon Payments will get paid faster.
“Rather than waiting the typical two or three days for credit card payments to hit an account, Groupon Payments users get paid overnight,” said Shah. “It’s never been easier to calculate bill totals, process refunds, redeem Groupon vouchers, email receipts and most importantly, save money.”