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For exposure, Groupon can be great for businesses. But often times, those new customers receive their one-time discounts and never come back.

Seattle startup PaidPunch wants to fix that and is out to solve the “Groupon Problem.”

The company, which placed second at our Startup Day elevator pitch competition last September, just released its new iPhone app that lets people save on everything from spas to salons to restaurants.

How is it different than Groupon? Instead of individual deals, PaidPunch customers buy a set of coupons spread over multiple transactions. That means you can receive 10-to-50% discounts multiple times from the same establishment.

“Businesses live off repeat business,” CEO and co-founder Tony Mandarano. “PaidPunch increases repeat business by both attracting new customers that return and by increasing purchase frequency from existing customers.”

PaidPunch has partnered with over 50 locations in the Seattle area, including K1 Speed, Mayuri, Emerald City Smoothie, Red Mango, and more.

Previously on GeekWire: Groupon CEO’s funny farewell is a model of candor

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