According to a report at VentureBeat, daily deals site Groupon is testing an iPhone payments system like that of Square, PayPal and Verifone. The system is said to include aggressive pricing of 1.8% fee and 15 cents per transaction–compared to Square’s 2.75% share with no transaction fee and PayPal and Verifone’s 2.7%. Critically, in what may be a deal-maker for many low-end merchants, Groupon is offering a free iPod Touch alongside its free card reader, while its peers require the merchant to buy an expensive iPod, iPhone, iPad or Android device of their own. The information comes via a leaked internal email, and Groupon has no comment. Groupon recently reported profits after a period of poor performance. Considering Groupon’s expertise is in daily deals and discount coupons, it’s possible that the firm will leverage this system into its new mobile pay service–meaning our prediction for the rapidly-evolving future of the credit card looks on target.
To keep up with the news as it happens, drop by our main Fast Feed page during the day.