Illinois-based Shopping Deals Provider, Groupon Inc. (NASDAQ: GRPN) has a brought a good deal for merchants, with the launch of â€śGroupon Paymentsâ€ť, which provides payment services at lowest cost for merchants who accept Groupon vouchers and credit cards for payment.
The app has been developed for the iPhone and iPod Touch only. It provides an opportunity for small scale merchants who used to do business only by cash, to accept credit card payments for an easy transaction.Â GRPN believes that restaurants, salons and spas, retail establishments and other local businesses will get the benefit out of it.
GRPN first tried a pilot test with merchants in San Francisco area. Following the successful pilot test, the company released the fuller version to all merchants that run a deal with it in the United States.
GRPN claims that there is no hidden cost or monthly fees for these transaction except the small service charges levied for each swipe. The company charges 3% plus $0.15 per transaction for payments by American Express Credit cards and 1.8% plus $0.15 per transaction for swipes by other credit cards, which include Visa, MasterCard and Discover.
The best part is faster delivery of money to the bank accounts. Unlike other card processors, the transaction amount will get credited to the Merchantâ€™s bank account overnight.
Merchants, who sign up for â€śGroupon Paymentsâ€ť Service, receive a case-based credit card reader suitable for high transaction volume merchants or an audio jack accessory. They can enter bill totals, add tips, apply taxes, process refunds and email customer receipts through this. They can even have payment history, sales reports and track revenue trends every day.
Mihir Shah, VP Mobile and Merchant Products at Groupon, quoted that the goal is to provide merchants with the most affordable and powerful tools to run and grow their businesses. He is proud that Groupon Payments provides groundbreaking service at lowest price.
GRPN also released a pilot version of Groupon Payments for non-group merchants, who can utilize the same services at a little extra cost.
Though Groupon had been established in November 2008 only, it has evolved significantly in the short period. As per the latest quarterly results for June 2012, its net revenues were $568.34 million with $32.33 million as net income.