During the firm’s latest quarterly conference call, VeriFone chief executive Doug Bergeron announced the move and said that its own mobile payments service Sail, which allows small merchants to accept debit and credit card payments, had been largely unprofitable.
“Customer acquisition costs, either through search engines or TV advertising, cannot and will never justify the razor thin margins produced by merchants with infrequent volumes and extremely high attrition,” said Bergeron.
VeriFone will instead spend time focusing on providing mobile payments to small merchants through 'indirect channels', with the company to sell off all mobile [...]
“The era of standalone machines is over,” said Rabois, when speaking to AllThingsD. “Everyone will be migrating to iPads and comparable devices, which will be powered by an app — that is, hopefully, Square.”
When pushed on a timeline for this, Rabois said that this move would happen over the next 18 months.
Mobile payments firm Square allows individuals and businesses to pay for goods using their debit and credit card, either by using Square's free magnetic-swipe reader or by manually entering the payment details via Square's iPad, iPhone and Android apps. The company even has its own Square Register app for retailers.