Like Paypal and the new Square payment service (talked about in class), Groupon has created its own credit card payment service. This service will now be available for iPhone and iPod touch creating competition for other online payment services. Participating merchants can get a free plastic dongle (just like Square) for swiping credit cards. Groupon says that they will only take 1.8% of transactions on major credit cards which is the “lowest rate available” according to Groupon reps. Both Paypal and Square currently charge over 2.7%. Looks like some developers believe mobile payment systems are the new way of transactions.