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 San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

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

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...