IP Commerce, Groupon Payment Partner, Shutting Down

IP Commerce's decision could leave two dozen or more customers seeking other tools needed for processing online and bricks-and-mortar transactions. It underscores the challenges of breaking into the low-margin payment-processing business, which is dominated by such existing providers as JPMorgan Chase & Co. (JPM), First Data Corp. and WorldPay Ltd. IP Commerce had also been used by mobile payment vendor Square. "As the commoditization of payment-processing services accelerates, we have determined that it is no longer economically viable for us to provide payment processing services," Charlie Wilson, an executive at IP Commerce, wrote in the e-mail to customers. In the commerce industry, there's little room behind the scenes for profit after credit-card companies and banks take their cuts of a transaction. Newer entrants in the field, such as EBay Inc.'s (EBAY) PayPal and Jack Dorsey's Square, have found success by offering their services directly to consumers. Story

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.