Groupon Getting Into Crowded Mobile Payments Space

Groupon is ready to challenge such mobile payments heavyweights as Square and PayPal.

This week, Groupon announced the launch of GrouponPayments – a payments service backed by a guarantee to be the lowest cost option for the company’s merchants to accept credit cards.

Built into the latest version of the Groupon Merchants app for the iPhone and iPod Touch, Groupon Payments provides restaurants, salons and spas, retail establishments and other local businesses with the ability to accept all credit card payments at a lower rate than other providers.

“After a successful pilot in the San Francisco Bay Area,” Groupon says, “any merchant that runs a deal with Groupon in the United States can now accept payments at the lowest rates in today’s marketplace.”

Merchants will also have their credit card deposits in their bank accounts overnight, which is much faster than the typical experience of waiting two to three business days offered by most credit card processors.

“Our goal is to provide merchants with the most affordable and powerful tools to run and grow their businesses,” said Mihir Shah, VP Mobile and Merchant Products at Groupon. “With groundbreaking pricing and service, Groupon Payments does just that.”

So… do you think Groupon will be able to compete with the big boys of mobile payments? Please weigh in with a thought or comment below.