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Chase, Groupon ramp up mPOS offerings to serve smaller businesses

Chase Paymentech and Groupon have both recently announced advancements to their mobile point-of-sale offerings in an effort to provide easier payment technology for smaller businesses.

Chase Paymentech added mobile checkout to Chase Checkout, a multi-platform solution that lets merchants accept payments however they do business. Groupon also added a new component to its payment system Breadcrumb by adding credit card terminals to its mPOS offerings.

“The strategy really is one that we’ve embarked upon over a year ago, and that is continuously looking to simplify the offerings for small businesses,” said Peter Gasparro, group executive of business development at Chase Paymentech, Dallas. “The strategy is about providing an end-to-end Chase-centric solution.”

“The most important thing is our brand,” he said. “That’s what differentiates ourselves. I think there’s confidence in that small business dealing with a financial institution and knowing that we have a full service solution for them.

Chase Checkout
Chase Paymentech rolled out Chase Checkout to provide a one-stop shop for small business owners. The goal was to help them receive payments in whatever format they desired.

Now, merchants have the ability to accept payments via the Chase Mobile Checkout app and encrypted card reader.

The service works with Apple and Android smartphones and accepts both debit and credit cards. It also lets merchants monitor and process voids and returns.

Additionally, merchants can view sales and transaction summaries from the app as well as email or text digital receipts.

The card reader fits in the audio port of smartphones and includes a rechargeable lithium ion battery so that it does not drain the smartphone’s battery.

The idea behind Chase Mobile Checkout is that merchants can take payments on the go and in the field. It can also help cut down in-store lines.

Groupon originally launched a payments service in Sept. 2012, and it launched Breadcrumb Pro in Oct. 2012. Breadcrumb Pro caters exclusively to restaurants and bars.

In May 2013, Groupon launched Breadcrumb POS, which caters to a broader range of merchants.

According to Erin Yeager, communications coordinator at Groupon, Chicago, 90 percent of the businesses that work with Groupon have 20 or fewer employees and one-fifth are sole proprietors, so Breadcrumb services can help these smaller businesses set up shop easily and affordably.

With the addition of credit card terminals, Breadcrumbs is now even easier to use.

Businesses can configure an existing Verifone and Ingenico device, purchase one from Groupon or rent one. They can also use a tablet, smartphone or laptop.

Groupon is also offering free processing on the first $5,000 in credit card transactions as a promotion.

Additionally, the system provides business analytics and the ability to run reports on payments trends, top customers, refund amounts and tip totals.

With the mPOS field gaining more competitors every day, the challenge is to stand out in the crowd.

“We have a number of features that differentiate us from other companies in the marketplace,” Ms. Yeager said.

“Most notably, we offer a low-price guarantee to beat any competitors’ rates on credit card transaction fees,” she said. “Rates of only 1.8 percent plus $0.15 per transaction with no hidden costs or monthly fees.”

Final Take
Rebecca Borison is editorial assistant on Mobile Commerce Daily, New York