Groupon Inc To Play A Role In Apple Pay Launch
Along with Staples, Panera, Macy's, Target, McDonald's, Subway and a host of other retailers, Groupon plans to be involved with Apple Pay at launch next month.
In a press release, Groupon shared more details of the arrangement. "Bringing Apple Pay to the Groupon mobile app makes it easier than ever to find and buy the best things around you," CEO Eric Lefkofsky explained.
Lefkofsky added: “With nearly 92 million app downloads worldwide and more than half of our transactions occurring on mobile devices, Groupon is one of the largest mobile commerce companies in the world.”
What's This Mean For Groupon?
For Groupon, the immediate commitment to Apple Pay makes sense. The commerce company already has one of the 25 most-downloaded free apps in Apple's App Store, it says. App Annie reports it is the third most popular iOS lifestyle app in the U.S., ahead of Amazon and eBay's offerings.
A strong mobile presence, in fact, is a major reason why RBC Capital upgraded Groupon shares earlier this month. At the time, RBC analyst Mark Mahaney noted mobile progress and a reasonable valuation warranted a price target of $6 on the stock. Deutsche Bank also maintained a Buy rating with a price target of $7.
While Groupon stock is down this year, last week's optimism pushed the company's stock price past $7 for the first time since May.
Disclosure: At the time of this writing, the author had no position in the equities mentioned in this report.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.