updated 04:32 pm EDT, Mon May 7, 2012
VeriFone to bring out SAIL card reader to defend against Square
VeriFone will release a new card reader that plugs into the iPhone or iPad's 3.5mm headphone input to process payments. A step up from its PayWare solution for hardware, the new device, called SAIL, will be very close to Square's hardware. VeriFone already makes card payment hardware for larger businesses and stores, and is trying to protect this client base from smaller up and comers like Square, BusinessInsider reported.
Some key differences will exist between Square's system and VeriFone's however. For one, while both charge a 2.7 percent cut of each transaction, but SAIL will give larger business the option of dropping that to 1.95 percent with a $9.95 monthly fee. The hardware will also be paired with an app that can scan barcodes, giving them the option of cashier-free checkouts.
SAIL will also offer businesses that grow to better suited products and services. Online tools for tracking transactions, managing inventory, and other functions are likewise available in the VeriFone system.
VeriFone will open the platform to third-party developers as well so other stores or apps can use the system for payment processing within their own products.
It has sold more than 20 million point-of-sale devices to stores and claims nearly 65 percent of physical retail transactions in the US.