How Will Groupon (GRPN) Stock Be Affected By New Apple (APPL) iPad Payment Service System?

NEW YORK (TheStreet) --Today Groupon Inc. (GRPN) announced it's expanding its in-store payment business by introducing a new service called Gnome, "a tablet-based platform that will let merchants instantly recognize their Groupon customers as they enter their business, seamlessly redeem Groupons and save time and money with a simple point of-sale system and credit card payment processing service."

The service will use the Apple  (APPL) iPad and businesses will have to pay Groupon a monthly fee for the tablet as well as a transaction charge, Bloomberg reported.

For over a month the service has been in trial stages in five cities, where 98%-99% of the businesses using the system decided to adopt it, according to Bloomberg.

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With the introduction of the new tablet based payment system Groupon is now competing against companies like Square Inc. and eBay's  (EBAYPayPal.

Shares of Groupon are up 0.58% to $6.05 on Monday. 

TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate GROUPON INC (GRPN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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