Twitter buys CardSpring: Deals and discounts on the horizon

Twitter is looking to enhance its ability to offer deals and discounts with its latest acquisition, CardSpring, a mobile payment system.

This follows a leak in February that Twitter was looking into ways to allow users to purchase goods straight from its site.

CardSpring, once integrated with Twitter, could allow users to purchase products through tweets, as well as provide developers with the ability to analyse where customers are purchasing their products from, and which promotions have provided the best sales.

Nathen Hubbard, the head of commerce at Twitter, said, "We've already given users the ability to get deals and discounts, surprise someone with a coffee, or even add items to their online shopping cart — all directly from a Tweet. As we work on the future of commerce on Twitter, we're confident the CardSpring team and the technology they've built are a great fit."

CardSpring works by allowing users to link their credit card accounts to merchants, particular deals or loyalty programmes, so that those deals are recognised and redeemed when the users' card is swiped.

Starbucks, already offers a "Tweet a coffee" function; which connects users' Twitter and Starbucks accounts, allowing them to tweet a $5 coffee voucher to another user.

The sale also provides Twitter with an analytics system called CardSpring Connect, which can be installed on a merchant's in-store sales system, tracking both online and in-store sales, so they can compare performance, and find out where their products are selling best.

This follows Twitter's purchase of BackType in 2011, a California-based company which offers its services to assist businesses with understanding the impact of social media platforms in their growth.

Read more: Twitter buys analytics platform BackType

CardSpring was founded in 2011 by former Netscape engineers and executives with $10 million worth of investment from Greylock Partners, Accel Partners, Morado Venture Partners, SV Angel, Data Collective, John Hering, Felicis Ventures, and Webb Investment Network.

Twitter declined to disclose the size of the deal.