Groupon takes on Square with its own smartphone-based credit card reader.
Since early 2010, Square has provided an affordable and convenient way for small business owners to receive mobile credit card payments. Without too much competition, the app has made its way into the loving arms of many food trucks around the nation, but now it looks like there could be a new kid on the block.
Social deal website Groupon has positioned itself to take on Square with its new Groupon Payments program. After a successful pilot program in San Francisco, California earlier this year, the company is now ready for a nationwide release of its smart phone-based credit card reader. With a 1.8 percent cost for MasterCard, Visa, and Discover credit cards, along with a $0.15 per transaction fee, Groupon's Payments could result in cheaper merchant prices when compared to Square's 2.75 percent flat rate. American Express, on the other hand, is set to cost 3 percent with Groupon's Payments, along with the usual $0.15 per transaction fee.
Another benefit of Groupon's new app is that it can accept Groupon daily deals, making any business that is already working with Groupon an ideal customer. For more information on Groupon Payments, head on over to the new website here.