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Groupon Rumored to be Looking into PayPal Option

The popular daily deal website, Groupon is said to be in talks with eBay’s PayPal in an effortto provide users with additional purchase options and to help eradicate fraud. The sources of this information refused to be identified since the discussions have not been officially made public but if it is true teaming up with PayPal would offer customers multiple payment options as well as help Groupon and its merchants to better track coupon use and prevent fraud by peopleprinting out more than one coupon.

Coupons or “groupons” as the company calls their group coupons are as good as gold and this can sometimes create an environment for abuse. Most businesses will print out a list of peoplewho purchase coupons and will then cross off the corresponding serial numbers as the grouponsare redeemed. While this may work, it is also time consuming for merchants and leaves themopen to fraud.

President of Cole Hardware in San Francisco, Rick Karp, admits that it’s fairly cumbersome for the store to keep track of the serial numbers. In July the store sold more than 3,800 coupons for 50 percent off on merchandise.

According to Groupon’s Vice President Mihir Shah, the company will soon be releasing amobile-phone application to help businesses track their groupons. Shah explained that the mobileapp, which runs on the Apple iPhone and uses Google’s Android software, will let merchantsscan serial numbers on Groupon customer receipts. Some stores began testing the app last week.

“When you as a merchant try to grow your revenue by opening yourself up to new methodsof electronic commerce — Groupon or whatever — you expose yourself to greater fraud risk,”said James Van Dyke, president of Javelin Strategy & Research in Pleasanton, California. “Is itdangerous? Yes. It’s also dangerous not to be involved. The merchants who don’t get involved inthis don’t grow and get left in the cold.”

“We’re keenly interested in ways to make redemptions easier for both customers andmerchants,” Groupon Chief Executive Officer Andrew Mason said in an interview. “What we’retrying to do is give them something that’s super-fast and easy to use.”

Groupon, the Chicago based company that began in 2008, offers deals in more than 230 citiesacross 29 countries. Currently they are the leaders in a flurry of similar companies bringingconsumers daily deals from local merchants. Groupon was valued at over $1 billion after raising $135 million from the Russian investment firm Digital Sky Technologies.


Daily Deal Media covers the growing power of social buying generally called “Daily Deals”. With the explosion of companies like groupon, livingsocial and many others, the way consumers purchase online may have been altered forever. Which companies will emerge as front runners in this space, and who are some of the executives behind them? Which investors stand to gain the most, and which companies have they backed? Daily Deal Media helps you keep up with this fast pace industry, and provides valuable insight, resources, industry reports, forums and more.
DDM Reports
The 2014 Edition of the DDM Daily Deal Publisher Directory is the most comprehensive contact list for daily deal sites, flash retailers, aggregators and individuals operating in the daily deal industry. Each record includes the following: - Company Name - Website - Contact Name - Contact Title - Email - Phone - Address (not all records contain a full mailing address)
The 2013 Media List is a comprehensive database of all major media, bloggers and product/app review websites. If you're looking for PR distribution, this is a great list to begin with. Each record includes: - Contact Name - Publication Name - Website URL - Address - Email - Description
2.7M Consumer Subscribers. This data has been aggregated from a number of websites, which include daily deal sites that have gone out of business. Data includes: - Full Name - Address - Phone Number - Email - Signup Website - IP Address - Date of Signup Data will be delivered via a dropbox link in CSV format.