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Groupon Launches Its Own Payments Service

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As reported a few months back, Groupon has been testing its own payments service and Square competitor. Today, the company officially unveiled it. It’s called Groupon Payments.

A Groupon spokesperson tells WebProNews that it “guarantees to be the cheapest and simplest option for local businesses to accept credit cards,” and that it “will beat any other available rates — offering local businesses significant cost savings on credit card processing fees.”

The product is built into the latest version fo the Groupon Merchants app for iPhone and iPod Touch.

“Groupon Payments facilitates credit card transactions for any Groupon merchant,” the company says in a blog post. “And since the service is already built into the app, existing Groupon merchants can enroll quickly and smoothly.”

“Groupon Payments is perfect for any business whether it’s a spa, deli, bar, salon or restaurant,” Groupon adds. “In addition to slashing transaction fees, Groupon Payments offers services that most of the traditional processors don’t. Rather than waiting the typical two or three days for credit card payments to hit an account, Groupon Payments users get paid overnight. It’s never been easier to calculate bill totals, process refunds, redeem Groupon vouchers, email receipts and most importantly, save money!”

Here’s what the pricing looks like:

Groupon Payments Pricing

There’s an online Groupon Payments Center, where business owners can view a live transaction history, check sales reports, track deposits, and analyze revenue.

There’s also a card reader than can plug into the device’s audio jack (like Square). It’s free to merchants, and Groupon says merchants can opt for a high-volume case-based reader if they need it.

Here’s the features/advantages list as provided by Groupon:

Swiped transactions — MasterCard, Visa and Discover (1.8% plus $0.15 per transaction) and American Express (3% plus $0.15 per transaction); no hidden costs or monthly fees

Dependable Service — Backed by a 7-days-a-week Groupon Payments support team reachable by phone and email

Hassle-Free Enrollment — Up and running within minutes

Comprehensive Features — Use Groupon Merchants app to enter bill totals, add tips, apply taxes, process refunds and email customer receipts

Durability — Swipe credit cards via a sturdy, case-based credit card reader suitable for high transaction volume merchants or an audio jack accessory

Security — Encrypted and secure credit card information

Analytics — View payments information seamlessly to an online Payments Center where merchants can view a live transaction history, check daily sales reports, track deposits to their account and analyze revenue trends

Groupon has launched Groupon Payments in the U.S. only. No word on geographical or device expansion plans.