Groupon Inc (NASDAQ:GRPN) offering customers a breadcrumb
Domination of the MPOS space is the one battle that is never-ending. In the U.S alone, over $3.6 trillion in debit and credit card transactions are processed on an annual basis. The race to get the biggest bite of this lucrative chunk just keeps heating up. At the moment, Groupon Inc (NASDAQ:GRPN), PayPal and Square are the 3 major contenders. Each of these companies has launched its very own Mobile Point-OF-Sale (MPOS) system. This is to encourage businesses to transition from their conventional cash registers to the cloud-based POS.
Give these three a cursory glance and all the systems may seem like they offer the same thing-an MPOS solution that businesses can use. However, each one of these payment processors has made a massive effort to create some differentiating factor with the incentives and waivers they provide. Groupon Inc (NASDAQ:GRPN) has been urging retailers to get rid of their cash registers and download its free app, Breadcrumb. This is a plug-and-play POS solution specifically for merchants. All that the retailers need to do is download the app onto an iPad, switch on the printer and connect a card reader.
Benefits of the cloud
Similar to its competitors, Breadcrumb too operates via the cloud and real time reports and sales can be accessed via the website or the app at anytime. An active internet connection is the only prerequisite. Breadcrumb charges 1.8 percent + 15 cents for every card swipe, in terms of its processing fees. As a perk, if the retailer buys a credit card reader at a cost of $15, Groupon waives processing fees for the first $5,000 worth of credit card transactions.
GRPN sure seems to have its act in place but whether it will win the MPOS war is yet to be seen. With the introduction of the MPOS cloud-based systems, the clunky cash registers will ring no more. And companies such as Groupon, Square and PayPal are doing their best to see that they are obliterated from the retail world forever.