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GoDaddy is competing with Shopify

GoDaddy launches payment processing services as it aims to compete with Shopify.

GoDaddy on Tuesday announced the launch of GoDaddy Payments, a new service that enables the company to process payments for its more than 20 million customers and puts it in more direct competition with Shopify. GoDaddy, which provides web hosting and domain registrar services, said the service was built using the technology and teams it acquired from Poynt in December.  

GoDaddy bought Poynt for $320 million to expand its e-commerce and payments capabilities, and said at the time that the deal would accelerate its strategy to provide a complete suite of commerce and payment services for its customers that could rival Shopify, which has emerged as a leader in the e-commerce tech category. 

With Poynt, GoDaddy gained a suite of products tailored to small businesses, including POS, payments processing, and invoicing. By combining Poynt with its existing websites, marketing and WordPress commerce services, GoDaddy is now positioned to offer its customers a unified commerce platform bridging both online and offline shopping.

“GoDaddy is hyper focused on empowering our customers to sell everywhere with a single solution in a seamlessly intuitive experience,” said GoDaddy President of Commerce Osama Bedier. “GoDaddy Payments represents a major step towards centralizing every tool and service a business needs to successfully sell online. Customer feedback has been overwhelmingly positive, and we look forward to accelerating our efforts.”

GoDaddy Payments integrates with Websites + Marketing and GoDaddy-powered Managed WordPress and WooCommerce sites, the company said. The integration lets customers manage orders, payments and refunds, alongside other aspects of their online business, from one dashboard.

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Over the course of the pandemic, GoDaddy saw record net new customers and acceleration across its three core product categories — domains, hosting and presence, and business applications. GoDaddy said in its Q1 financial report last month that bookings passed the $1 billion mark for the first time. In November, GoDaddy said it had added over a million customers so far in 2020, net of churn, which was its highest nine-month rate of additions in its history.

Written by Natalie Gagliordi, Senior Writer on June 15, 2021

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