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Groupon partners with VeriFone to take on Square

  • Groupon (GRPN -0.6%) has struck deals to have its Breadcrumb mobile payment-processing services supported by point-of-sale terminals from market leaders VeriFone (PAY +1.4%) and Ingenico. The solution is aimed at small businesses.
  • The companies are attempting to take on Square, which is processing over $10B/year in transactions (mostly from small businesses), courtesy of its tiny/easy-to-use mobile card readers and related apps. The company's rapid cash turnaround has been a key selling point.
  • Groupon, trying to offer an end-to-end suite of local commerce services, says it still expects "most merchants will eventually migrate their payments to tablet and mobile POS systems." But it considers its new offerings a useful interim solution for those sticking with "familiar hardware."
  • Groupon officially launched its own mobile card readers last September, and (like a few other firms) is charging lower fees than Square. VeriFone, which has had a rough time lately, abandoned its mobile card reader efforts last December.
Comments (1)
  • movies555
    , contributor
    Comments (610) | Send Message
     
    Ingenico is available via ADR shares (INGIY) . It also pays a decent-ish dividend.
    14 Aug 2013, 12:05 PM Reply Like
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