Edo Interactive Inc., a tech startup that marries bank cards and discounts, is moving in on Groupon Inc., Google Inc. and other companies doing online local deals.

Edo plans this week to start offering local merchants its service, which allows a retailer to target potential customers based on their spending history. Previously, the company was focused on large national retailers.

It’s a potential game-changer. Groupon was the first Internet advertising weapon for local merchants that really took off. But daily deals are not a perfect solution.

What’s different about Edo is that it promises to allow a merchant to target potential customers from a bank’s database of credit or debit card users rather than the database of people who sign up for Groupon, LivingSocial or Google deals. That could solve two big problems with traditional daily deals: allowing merchants to target customers they really want without also offering discounts to their existing customers; and to give consumers deals relevant to them based on what they actually buy.

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