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Why Does Groupon Keep Snapping Up Tech Companies?

Posted on Mar 28, 2012

Daily deals giant Groupon has purchased FeeFighters, a company that helps small businesses compare payment providers.

The three-year old company assists companies by sorting out credit card processing fees based on volume and average transaction sizes.

Sean Harper, FeeFighters co-founder and CEO, announced the acquisition on his company's blog.

Our goals have always been to help small businesses run more efficiently, and by teaming up with Groupon, a pioneer in local e-commerce, we are able to execute on that goal even better than we were as an independent company, Harper wrote.

The question on many people's minds is why is Groupon interested in buying FeeFighters?

An article at All Things D notes that Groupon is working to establish itself as a company that provides a variety of services to small businesses, including lead-generators like daily deals.

For example, it recently unveiled Groupon Scheduler, who allows customers to book online appointments with spas and salons.

The theory, according to the All Things D, is that Groupon is acquiring tech companies to accomplish its goal of reaching out to more small businesses.

A payments processing expert at US Dataworks says Groupon likely has a deeper motive, such as the promotion of FeeFighters online payment gateway, called Samurai.

The real solution, the expert notes, is a payments approach that stresses simplicity in setup and in fees.

Source: All Things D, March 2012