Groupon business model

The companies that need to be looking at the Groupon business model is the credit card companies. By offering to sell people gift cards at a discount if they use their credit card, the card companies could do a brisk business in the getting people to make additional purchases. The card companies could do even better by offering an additional discount if the customer uses the purchasing card on the transaction that redeems the gift card. A Groupon like model is a win/win for the card companies since it drives use and could be used to get red ink off their books by getting people to redeem points for discount gift cards