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Groupon introduces new payment system

September 25, 2012

One of the largest online coupon firms recently made headlines in the merchant services industry after it announced that it was coming out with its own payment processing program.

One of the largest online coupon firms recently made headlines in the merchant services industry after it announced that it was coming out with its own payment processing program.

USA Today reports that Groupon is gearing up to compete with brands including Square, PayPal and others, with its Groupon Payments program. The service, which is available through iPhone and iPod Touch applications, will charge merchants 1.8 percent for Discover, Visa and MasterCards, and 3 percent for people using American Express. This fee is on top of a 15 cent swipe surcharge that merchants must pay for every transaction.

In an interview with the newspaper, Groupon CEO Andrew Mason said that the move would help make its service even better for retailers that chose to implement it.

“We’re not trying to make money hand over fist,” Mason told the newspaper. “The goal is to enhance (services) for daily deals.”

Groupon is hoping that the move can help its struggling stock. Since the start of 2012, the firm has seen its stock fall by 77 percent, Bloomberg reported.

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