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GroupMe Updates App With Ability to Split Costs and Collect Payments from Friends

Discussion in 'iOS Blog Discussion' started by MacRumors, Mar 7, 2013.

  1. macrumors bot

    MacRumors

    #1
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    [​IMG]
    GroupMe today updated their group chat app to version 4.1, adding a gallery view and a feature called Split, which allows users to split costs and collect money from their group.

    The company detailed potential uses for the feature on its blog:
    [​IMG]

    Although the person who creates the Split is not subject to any fees, contributors to the Split will have to pay a 4% fee plus $0.99, which covers credit card processing fees and a small GroupMe convenience charge. However, GroupMe is waiving the fees from today, March 7, until the end of SxSW Interactive on March 12.

    GroupMe is a universal app that's available in the App Store for free. [Direct Link]


    Article Link: GroupMe Updates App With Ability to Split Costs and Collect Payments from Friends
     
  2. macrumors 6502

    #2
    I can't wait to see what other apps Macrumors is going to report on!
     
  3. macrumors 603

    ArtOfWarfare

    #3
    Split their example "Birthday Cake" 4 ways. The three people chipping in have to pay $45/4 * 1.04 + $0.99 = $11.25 * 1.04 + $0.99 = $12.69.

    GroupMe will be collecting ($12.69 - $11.25) * 3 = $4.32 from this single example.

    Each person will be spending 13% extra for the convenience of not having to remember to bring the right amount of money the next time they see whoever they owe.

    I suppose as the person who others normally have to pay back, I would appreciate this...
     
  4. macrumors 6502

    #4
    Without trying the app or completely reading the article, here's what I think a typical conversation is going to look like:

    Person 1: "hey guys, lets split the cost of gas. what's $60.06 / 3? gee, math is too hard, hey I know, how about let's all download this app."
    (3 minutes later)
    Person 1: "k guys, I'm inviting you to this group, did you accept?"

    Person 2: "nah, sec, hold on...k downloaded. Nah I didn't get your invitation."

    Person 1: "hold on, let me invite you again"

    Person 2: "ah, got it. k I accepted"

    Person 1: "k so...how much was it again? Oh yeah, $60.06. So let me put that in and we'll split it"

    Person 2: "got it, hold on sec, let me input my credit card information"

    Person 1: "yeah me too, sec..."

    (3 minutes later)

    Person 2: "got it, k paying now...WTF $0.99 cents + 4% charge? screw that I'll just pay you $20"
     
  5. arn, Mar 7, 2013
    Last edited: Mar 7, 2013

    arn
    macrumors god

    arn

    Staff Member

    #5
    Except, lots of people use the app already for group messaging (it's primary purpose).

    That's like saying that if Apple were to come up with a payment option for their iPhone, this is how I see it going.

    Store #1: That will be $49.95, you can pay by iPhone, or Credit Card or Cash?
    Customer: iPhone? Ok, hang on.
    ...drives to Verizon...
    Customer: I'd like to sign up for an iPhone
    ...30 minutes later....
    ...customer drives back to Store #1....
    Customer: Here, I have an iPhone, can I pay?
    Store #1: Who are you?

    arn

    (that said, the fees are high and would probably stop me from using it for that purpose)
     
  6. macrumors newbie

    #6
    4% + 99 cents?
    Paypal is cheaper.
     
  7. macrumors 6502

    #7
    true. However, even if everyone had groupme, there's still the painful process of entering billing information the first time round which people wouldn't want to do.
     
  8. macrumors 6502

    smileyborg

    #8
    Yuck. 4% fee...?

    Venmo.

    It's free. P2P payments. You can even pay a phone number and they can pick up the money later.
     
  9. macrumors 603

    appleguy123

    #9
    The fee is way too high. Paypal should just add this feature to their app.
     
  10. macrumors 68030

    #10
    Too much. PayPal thanks!
     
  11. macrumors 6502

    #11
    Silver lining is, imagine doing this with In App purchase!
     
  12. macrumors 603

    appleguy123

    #12
    Imagine paying a 34% fee...
     
  13. macrumors 6502

    OtherJesus

    #13
    You know what's cheaper?

    Having the restaurant pay for it by running separate checks.

    Cost of doing business.
     
  14. macrumors regular

    #14
    This is ridiculous. I thought Square was too expensive. They only charge 2.75%. These guys want to charge $.99 + 4%. That's nuts!
     
  15. macrumors 6502

    #15
    4% + 0.99 cents? I don't know about most of you but that's just a bit too much. I'd rather just do the math and round up or down to whole dollar...
     
  16. macrumors newbie

    #16
  17. macrumors 68000

    #17
    Every other payment service is cheaper. I assume they are using another service and decided they needed their own margin on top. The fees are ludicrous.
     
  18. macrumors newbie

    #18
    This could be amazingly convenient, but the fixed fee is a dealbreaker. I split bills tons of times with friends in the past but usually payed $5-20. These small amounts make an entire $1 completely unjustifiable. i'd like to know how much of the fee is imposed on them and how much they think they deserve for 'convenience'
     

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