Groupon Wants to Be There for Your Card-Swiping Needs
Groupon (NASDAQ:GRPN) announced it now offers traditional credit card swiping hardware to businesses through its Breadcrumb payments network, a move the company has made to more firmly establish itself in businesses that may not use Breadcrumb’s swiping devices compatible with Apple’s (NASDAQ:AAPL) iOS operating system.
Groupon’s new credit card swiping terminals are made by VeriFone (NYSE:PAY), and businesses have the option of buying, renting, or configuring a current Verifone device. Groupon acknowledged that not all businesses want or can afford to adopt Apple products.
Sean Harper, Groupon’s director of product, said of the traditional terminals in a statement, “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.”
“With the inclusion of terminals, Groupon extends its popular payments service to the most common way that local businesses accept credit cards and makes an affordable and sophisticated payments solution available to nearly every merchant regardless of the size of their business or budget,” the company said in its press release, which can be read on Seeking Alpha.
Businesses that purchase one of the Breadcrumb terminals will receive free processing on the first $5,000 in credit card transactions and free access to Breakcrumb’s point of sale applications that help businesses monitor payment trends, refunds, and tips, among other things. Groupon is guaranteeing competitive swipe fee rates for the terminals, with a rate of 1.8 percent plus a fee of 15 cents per transaction.
Breadcrumb has previously offered point of sale apps for Apple’s iOS operating system and an iPad- or iPhone-compatible device that allows businesses to swipe and process credit card payments via Apple’s mobile devices.
Groupon has been seeking different ways to expand outside the daily deals business that include its ventures into payments, business analytics, and restaurant reservations. Earlier this week, the company announced it had acquired startup Plumfare, an app that allows users to gift their friends menu items at restaurants by taking a photo of the dish and sending it to a friend via social media.
Groupon has faced struggles since going public, but after a better-than-expected earnings report and its naming Eric Lefkofksky the new CEO, investors are beginning to feel more confident about the company.
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