Online daily consumer deals specialist Groupon has launched a payment business and signalled its intention to compete aggressively on price with eBay’s PayPal and with Square.
The new service, called Groupon Payments, enables US restaurants, salons and spas, retailers and other businesses that run Groupon daily deals to accept credit card payments at a lower rate than other providers. In a typical local deal, a customer could pay US$20 for a voucher providing US$40 worth of goods and services.
Groupon will charge 1.8% for MasterCard, Visa and Discover cards, on top of a 15% fee per swipe. For American Express (Amex) cards it charges 3% plus the 15% fee. Card readers offered by Square currently charge 2.75% per transaction, while PayPal has a 2.7% fee.
“We talk to a lot of Groupon merchants and the one thing that came up again and again was that they felt like they were paying too much for credit-card processing,” said Mihir Shah, vice president of mobile and merchant products at Groupon. “We set out on this mission to slash the complexity and cost of collecting credit cards.
“We already have the sales force, we have the distribution advantage, and we have the relationship with the merchant. All we have to do is turn on the service.” Shah added that Groupon is giving away card readers made by Roam Data that plug into the headphone jack of Apple devices.
Merchants using Groupon Payments will be able to analyse transaction history, check daily sales reports and review revenue trends. The group’s daily deals competitors include LivingSocial, Google and Amazon.com, which owns part of LivingSocial. Groupama’s share price has fallen dramatically since its listing, so it could benefit from a new revenue stream if the new service takes off.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
As the May 25 deadline for Europe’s General Data Protection Regulation (GDPR) inches closer, many treasurers are being lumped with the task of ensuring their wider company is compliant.