Groupon Introduces Credit Card Payment Service
Today, Groupon launched a payment service that enables merchants to accept credit card payments using a card reader attached to an iPhone or iPodTouch.
By entering this market, Groupon Payments will take on the two leaders, PayPal and Square. Groupon apparently wants to compete on price.
Groupon, the largest deal company, is charging Discover, Visa and MasterCard 1.8 percent of the transaction price plus 15 cents per transaction. American Express will be 3 percent plus 15 cents per transaction. By comparison, Square charges 2.75 percent per swipe while PayPal charges 2.7 percent.
Groupon will initially target businesses that offer deals through the company. Other merchants may be able to use the service but at a higher rate.