Groupon to Offer Mobile Payments

The daily deals giant is reportedly entering the mobile POS market with a credit card reader/app combo that charges merchants 15 cents per transaction and a 1.8% transaction fee.

May 31, 2012

LOUISVILLE, KY - The mobile point-of-sale market could soon have a new player, as daily deal site Groupon is planning on entering the space, Mobile Payments Today reports.

Groupon??s mobile point of sale strategy includes launching a credit card reader/app combo, similar to Square, that will allow small businesses to accept credit and debit cards.

Groupon is planning to charge merchants 15 cents per transaction along with a 1.8% transaction fee (AMEX transactions would be charged at 2.7%).

Rather than use a dongle like Square, the Groupon service will rely on a wrap-around reader for iPod Touch devices to capture card data.

Industry trade publication Mobile Payments Today characterized Groupon??s intention as "interesting," coming on the heels of its purchase of Fee Fighters earlier this year, a company that helps merchants find the lowest credit card processing services. It has also been launching merchant rewards services that expand the company??s services beyond daily deals.

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