Home  › Social › Social Commerce
android-phone-with-swiper

Groupon Extends Payments Service as Rivalry Grows

  |  January 15, 2013   |  Comments

Groupon says its credit card processing service, Groupon Payments, is now available for Android phones as part of version 2.2 of the Groupon Merchants app. The payments service was released for iPhone in the fall of 2012.

Groupon says its credit card processing service, Groupon Payments, is now available for Android phones as part of version 2.2 of the Groupon Merchants app. The payments service was released for iPhone in the fall of 2012.

The payment service promises fast setup, simpler statements, online analysis of transactions and, for merchants in the United States, a lowest-cost guarantee. Users are typically small businesses, often with mobile workers, such as housecleaning services, quick-serve restaurants, contractors, health and beauty service providers, and small retailers.

While Groupon originated as a coupons and deals service, Sean Harper, director of products for Groupon Payments, says that credit card processing is in line with the company's overall mission and its other products, Groupon Scheduler and Breadcrumb, an iPad-based tool for sit-down restaurants.

"Since we're there and sending the merchant a lot of new customers, we make the business a lot more efficient in actually serving that customer," Harper says.

The mobile payment sector is hot and competitive, with Bank of America announcing Mobile Pay on Demand in November of 2012. Indeed, payments may be the killer app for providers of check-ins and deals. In March of 2012, a year after Scvngr launched LevelUp, another payments and rewards system, CEO Seth Priebatsch told ClickZ that the app was handling more than $1 million a month. Harper would not give information about the volume or dollar value of transactions handled by Groupon Payments, because the company will release its next earnings statement in February.

Groupon Payments can help merchants understand the ROI of their promotions by tracking when it sends someone into the store and that person buys something, according to Harper, who came to the company when it acquired his startup, FeeFighters, an online service to help merchants find the cheapest credit card processors. He says: "Having that data about when customers are in stores purchasing is hugely valuable, and Groupon Payments give us that."

In a hypothetical example, Groupon could only send a merchant's promotions to people who had not shopped there before. The service also could track the lifetime value of each new customer it gets into the location. "The real value to the merchant is repeat purchasers, but merchants systematically undervalue that," he says.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.

ABOUT THE AUTHOR

Susan Kuchinskas

Susan Kuchinskas has covered interactive advertising since its invention. The former staff writer for Adweek, Business 2.0, and M-Business covers technology, business and culture from Berkeley, CA.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...