The payment services sector may be getting more crowded, but Wall Street seems pleased that Groupon has jumped in.
On Wednesday, the daily deals giant rolled out Groupon Payments, which will allow merchants to accept credit cards using an iPhone for as little as 1.8 percent plus 15 cents per transaction, a rate Groupon guarantees is the cheapest available.
Immediate investor reaction was positive, pushing the company’s beleaguered stock up 14 percent this week to $5.38 a share, and it managed to hold on to most of that, closing Friday at $5.28.
Groupon hopes the payments feature and its low transaction costs will give merchants another good reason to use its deal services, even if Groupon Payments does not end up generating a lot of additional revenue on a standalone basis.
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