Verifone, one of the world’s top makers of the current credit card-reading tech in stores, launched its Sail ecosystem to address a totally new market: very small businesses who prefer to process transactions using devices like Square and the iPhone. But the company has revealed that it’s withdrawing from the small business market with Sail (which will remain on offer to banks for their own resale purposes) because it says the market offers only “razor thin margins” and profits that are “fundamentally unprofitable.”
That’s bad news, potentially, for Jack Dorsey’s Square. Sail and Square are highly similar systems, and though Square has had a degree of success in the U.S., Verifone’s expertise in processing card payments spans the globe. Verifone even verbalized this warning to Square alongside its news, but that’s nothing new–it’s got a bit of a history of down-talking Square.
This makes us wonder how big the Square market is: Have you ever used Square, or its smarter European equivalent iZettle?