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GoDaddy Inc., which launched GoDaddy Payments in June to unify its transaction services following its December deal to buy point-of-sale terminal maker Poynt Inc., released a countertop payment terminal and mobile card reader with lower fees than most competitors.
Merchants will pay 2.3% per card-present transaction and 2.3% plus 10 cents per e-commerce transactions. Keyed transactions are 3.3%. GoDaddy says its rate undercuts the average among four competitors—Square, Stripe, Shopify, and PayPal—of 2.6% plus 6 cents.
“These are our new transaction fees moving forward. We’re on a mission to enable small businesses with the most powerful yet easy-to-use commerce solutions at an unbeatable value,” Greg Goldfarb, GoDaddy vice president of commerce products, tells Digital Transactions News in an email. “The Poynt acquisition brought deep payment tech including transaction cost managing. We’re simply passing more of those savings to our customers.”
GoDaddy Payments uses the payment-facilitator model. “We offer a one-stop shop for our customers, providing everything a business owner would need to grow their business in one single platform,” Goldfarb says. “The new point-of-sale devices run transactions through GoDaddy Payments.”
These new products—the terminal, which is based on Poynt’s device, sells for $249 and the card reader for $49—mark a concrete move into providing payment services for GoDaddy merchants regardless of channel.
“GoDaddy knows that 60% of our customers have a brick-and-mortar or physical presence in addition to their Web site or online store—but we previously weren’t able to serve their in-person needs. Increasingly, point of sale is becoming a digital experience and needs to seamlessly connect with online activity/e-commerce,” Goldfarb says. GoDaddy has more than 20 million active customers.
GoDaddy also launched Commerce Hub, a single dashboard for all of a merchant’s commerce activity, such as orders and payments, whether online or offline. “Many businesses sell across multiple marketplaces, like Amazon, Etsy, Facebook, Instagram, their online store, their physical store, and events like farmers’ markets. GoDaddy provides the broadest range of built-in connections to sell across all these channels and manage in one place,” he says.
