Groupon (GRPN) - Get Groupon, Inc. Report shares surged higher Tuesday after the discount focused shopping website unveiled a distribution and payments agreement with Google parent Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
Under terms of the deal, which is set to begin in 2022, Groupon said users on the Google Pay mobile app will have direct access to the "thousands of unique local experiences and travel inventory available in the Groupon marketplace". Google said the arrangement will help it connect small business owners with consumers while making it easier and faster for Google Pay users to purchase the 'experiences' offered on the Groupon site.
“At Groupon, we’re focused on becoming the destination for local experiences by connecting consumers to merchants. This new partnership with Google Pay will greatly expand our ability to help merchants reach new customers and make it easier for more consumers to tap into the thousands of experiences available in the Groupon marketplace,” said interim CEO Aaron Cooper.
“Over the past 18 months, we’ve made meaningful progress expanding our inventory and modernizing our marketplace by making it easier for merchants and customers to do more with Groupon," he added. "We’re so excited Google Pay users will now have a convenient way to access our marketplace.”
Groupon shares were marked9.7% higher in pre-market trading Tuesday to indicate an opening bell price of $24.90 each.
Google shares, meanwhile, were marked 0.6% higher at $2,887.00 each.
The deal also represents another tie-up on the burgeoning payments space following a $317 million purchase of U.S. marketing start-up Fivestars by PayPal (PYPL) - Get PayPal Holdings Inc Report rival SumUp last month.
PayPal itself was recently linked to a $40 billion takeover of social media group Pinterest (PINS) - Get Pinterest, Inc. Class A Report, agreed to buy Japan-based 'buy now, pay later' firm Paidy for around $2.7 billion in early September.
PayPal's upstart rival Square SQ, which is run by Twitter TWTR CEO Jack Dorsey, agreed to buy Australia's buy now, pay later group Afterpay for around $29 billion in August as tech companies scramble to establish a foothold in the fintech sector's hottest space.