Groupon Expands into Credit Card Processing Industry with BreadCrumb
Groupon has struggled somewhat in the last few years, but the company has introduced a new mobile payment processing device that could make an impact on the industry.
The product is called BreadCrumb and payments can be processed on smartphones, tablets, laptops or card terminals. Groupon is trying to reach out to businesses who aren’t quite ready to make the switch to tablet technology. Thus, they’ve implemented their existing processing system in a stand-alone terminal that business owners can incorporate with their registers.
The company is competing with Square and PayPal with this new device.
Groupon claims that the processing fees are the lowest in the industry. The company charges 1.8% plus 15-cents per credit card transaction. If a merchant is paying less than that, Groupon promises to beat the current rate. For a limited time, the first $5,000 in transactions have no processing fees. Groupon has payment centers open 24 hours a day.
“While merchants are attracted to the easy signup, low and transparent pricing and powerful analytics provided by our payments service, not all merchants are ready to immediately adopt an iPad or iPhone for their credit card processing needs,” said Groupon’s Director of Product Sean Harper. “We anticipate that most merchants will eventually migrate their payments to tablet and mobile POS systems, but for now, this option lets them use familiar hardware and still benefit from the features of our payments service to save money and better manage their businesses.”