Groupon Inc Plans To Integrate Apple Pay Service


Groupon Inc (NASDAQ:GRPN) announced that it will integrate Apple Inc. (NASDAQ:AAPL) Pay service to offer an easy, secure and private pay. Integration will allow the iPhone 6 and iPhone 6 Plus users to make easy purchases. Groupon is the first company to announce such integration with Apple Pay, and the new payment will be available to the customers from October.

Groupon top rated app on iOS

Groupon CEO Eric Lefkofsky said that around 92 million app downloads all over the world of which more than half of the transactions are done on mobile device, makes the company one of the largest mobile commerce companies in the world.

“Bringing Apple Pay to the Groupon mobile app makes it easier than ever to find and buy the best things around you.”

Linking Groupon with Apple Pay will offer customers to pay through User ID from their iPhone 6 or iPhone 6 Plus. A new user will be allowed to create an account and make purchases swiftly in just few steps. Groupon is one of the top rated and free downloaded apps on the iOS.

Groupon revived significantly

Groupon has followed the right strategy by integrating with Apple Pay. RBC Capital upgraded Groupon shares earlier this month, impressed by its strong mobile presence. Analyst Mark Mahaney cited mobile progress and a reasonable valuation, for assigning it a price target of $6. Deutsche bank has assigned a Buy rating to the stock.

After a steep correction in the stock it dropped 43% this year, but gained around 16% of the value after the second-quarter earnings report. On an average, analysts have lowered their EBITDA 2014 estimates by 32% this year so far, bringing the consensus estimate down to $270 million. According to the analyst’s, valuation of Groupon is more reasonable, down from 17 times EV / EBITDA to 11 times 2015 EV / EBITDA.

Also, Groupon has achieved some advancement in their operational goals. There are some doubts in the minds of the analysts, primarily over the expansion into the Travel and Goods segment as competition is aggressive in both the segments.

On Tuesday, Groupon shares closed down 0.45% at $6.69. In pre-market trading, share were down 0.45% to $6.66.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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