Printed from http://www.electronista.com

Verifone cuts Sail, pulls out of mobile card payments

updated 03:25 pm EST, Fri December 14, 2012

Mobile payments deemed 'fundamentally unprofitable'

Payment processor VeriFone is withdrawing from the mobile card payments market, citing "razor-thin margins." The decision to shutter Square-competitor Sail came to light during a quarterly conference call, with CEO Doug Bergeron calling the market for low-volume merchant processing as "fundamentally unprofitable."

Sail opened for business earlier this year, offering customers a card reader that plugs into a smartphone, and while offering competitive rates of 2.7-percent of a transaction as a service charge, Sail also allowed customers to pay $10 per month to drop that rate down to 1.95-percent. By bundling a barcode scanning feature into the supplied app, it gave the option of cashier-free checkouts.

VeriFone will not shut off the Sail service completely, but will prevent new customers from signing up. Existing card reader owners will receive third-party partner customer support as well as maintain existing hardware and payment gateways, according to TechCrunch. Though the system will no longer be offered in the US, a version for markets using chip-and-pin instead of magnetic strips in their cards is apparently in the works.




By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Sponsor

toggle

Most Commented

 
toggle

Popular News