It was only a matter of time. The check-in app and daily deals spaces continue to merge, and this time it looks like the poster children for both spaces are joining forces.

Foursquare and Groupon are partnering, according to a report from All Things D’s Liz Gannes, who cites “multiple sources familiar with the matter”. She also shared the following statement from a Groupon spokeswoman:

“We see a lot of potential for Groupon Now! to be showcased via services like Loopt. No bigger picture to announce yet, but stay tuned for additional collaborations.”

So we don’t know exactly when we will see a product come of this, but it will most likely be pretty soon. A few days ago, location-based service Loopt announced a partnership with Groupon , which will see the new Groupon Now service being used by Loopt customers (in Chicago for now, but expanding in the near term) to get alerts on deals based on their location.

It seems highly likely that we’ll continue to see more and more of this kind of partnership. Expect Groupon to get on as many location-based services/check-in apps as possible to expand to as many new customers as possible as the deals space gets more competitive. Location is an obvious indication of deal relevance. The company even acquired a location-based service company in Pelago (makers of Whrrl). Simply put, location makes Groupon more valuable to consumers. Expect Groupon’s competitors to employ a similar strategy.

At the same time, the location-based service companies like Foursquare will continue to look for ways to not only stand out from the crowd, but offer consumers real value beyond the novelty of the check-in game. Foursquare already has an edge up on its competitors in this department, as it has steadily been making itself more appealing by offering businesses new ways to entice consumers. Foursquare and others check-in service will also continue to find new partnerships (that includes with Groupon’s competitors). Google is even letting Google Places users import Foursquare data.

The ways in which the deals players are able to deliver relevant deals will be the the main factor that drives their success in the space, and that is prcisely why it is key for Groupon to get out there on as many platforms as possible, as it is facing some stiff up and coming competition from the likes of companies like Facebook and Google who have tremendous advantages in the delivery department. Facebook has the ever-popular News Feed, and Google has search (not to mention Place Pages, email, and a variety of other weapons at its disposal, depending on how its strategy for Google Offfers develops).