PayPal Launching Mobile Daily Deals Service to Battle Groupon and LivingSocial

PayPal, owned by eBay, is going head to head with Groupon and LivingSocial by unveiling a plan to offer coupons to its massive base of 103 million users.  With Groupon recently having gone public and hovering a little under it’s IPO price of $25 and holding a market cap of $15B, investors see the daily deals market as a potentially lucrative one.  So it’s no surprise that PayPal wants to get in the game.

PayPal is hoping that it can provide better targeting to its users because of their intimate knowledge of user’s buying habits.  They are focusing on mobile to start, and plan to have their deals leverage location based technology so that a user passing by a store would have deals transmitted to their phone.

This may be a strong step forward for eBay into moving into a more standardized retail experience, as eBay itself relies on auctions for sales.  The biggest concern is that the market is now saturated with various companies jumping into the fray, including Google, Amazon and others.  How can PayPal compete?  Take a look at a deeper analysis here from Brian Blair, who’s cautiously optimistic about PayPal’s potential.

Image: Dmitrijs Dmitrijevs via Shutterstock