AAPL Stock: 117.55 ( -0.75 )

Printed from

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 MacNN Staff



Login Here

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


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented