Merchants report getting inundated from startup mobile-payment firms who are trying to compete with the likes of PayPal and Square by cutting deals that have left the fledgling companies with little margin for profit, writes Olga Kharif. Venture capitalists have invested $1.4 billion on the industry since 2008 with few success stories. "Most people who’ve worked on digital payments for a while are a little jaded about yet another company with a digital wallet. The bar is high," said Jared Fletcher of the Matrix Partners venture firm.

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