IP Commerce is shutting down its payments processing business, citing competition, according to Business Week.
Backed by investors such as Intel and Venrock, IP Commerce handles some card processing for companies such as Groupon and had previously been used by Square.
“As the commoditization of payment-processing services accelerates, we have determined that it is no longer economically viable for us to provide payment-processing services,” Charlie Wilson, an executive at IP Commerce, wrote in the e-mail to customers. “We regret any difficulty this presents for your business.”
Vantiv will take over “some of the operations of the processing” from IP Commerce.