Groupon debuts card payments on mobile phones

The company will compete with the likes of Square and PayPal which offer card swiping dongles with mobile phones

Groupon has launched a payment service that allows merchants to use an attachment to a mobile phone to swipe credit cards.

The daily deals site is entering an increasingly competitive market where key players such as PayPal with its PayPal Here, Square, and Intuit already offer similar services built around mobile phone apps and card reader devices.

But Groupon said in a blog post it was backing its new Groupon Payments service with the guarantee of being the lowest cost option for the companys merchants to accept credit cards. Groupon Payments users will also get paid overnight. The service is now available to Groupon merchants in the U.S.

Built into the latest version of the Groupon Merchants app for the iPhone and iPod touch, Groupon Payments provides restaurants, salons and spas, retail establishments and other local businesses with the ability to accept all credit card payments at a lower rate than other providers, the company said on Wednesday.

Groupon's technology, which has been tested in the San Francisco Bay area, is targeted at small merchants who don't have the traditional card swiping equipment.

The new Groupon Merchants app, which lets merchants redeem Groupons and accept credit card payments from the same application, is available on Apple's iTunes store. The feature does not appear to be supported yet on the Groupon Merchants App for Android.

While Groupon Payments is designed for local businesses that run deals with Groupon, the service is also available as a pilot to non-Groupon merchants who will pay slightly higher transaction fees on some cards.

Groupon merchants will be charged a 1.8 percent fee plus $0.15 for each transaction when a card issued by MasterCard, Visa or Discover is swiped. American Express cards will be charged a 3 percent fee plus $0.15.

Accepting card payments isn't the only way Groupon is expanding its business. In March, the company acquired FeeFighters, a comparison engine for payment providers targeted at small businesses.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?