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Groupon Said to Test Card Reader Challenging EBay’s PayPal

Groupon Inc., the largest daily coupon website, is testing a credit card-reader for merchants that could vie with similar devices offered by Square Inc. and EBay’s PayPal Inc., a person with knowledge of the matter said.

The reader, manufactured by Infinite Peripherals Inc., is designed for the businesses that rely on Groupon to market their wares, said the person, who requested anonymity because the test hasn’t been made public. The device plugs into the headphone jack of a smartphone, and it’s being tested by dozens of merchants in the San Francisco Bay Area, this person said.