Sage Introduces Affordable Mobile Payment Service with Credit Card Reader

Sage Payment Solutions, the payments division for Sage North America, has launched Sage Mobile Payments service that allows small businesses to expand their payment options by credit and debit cards on mobile devices. Sage's solution is usable across 400 different mobile phones and wireless computing devices and across all major carriers in the US.

Sage mobile payments Sage Payment Solutions, the payments division for Sage North America, has launched Sage Mobile Payments service that allows small businesses to expand their payment options by credit and debit cards on mobile devices. Sage’s solution is usable across 400 different mobile phones and wireless computing devices and across all major carriers in the US.

Sage is trying to differentiate itself from other mobile payment solutions such as Square and Intuit’s GoPayment by offering its service for a flat monthly payment of $10.95 instead of a per transaction fee. Sage thinks that the flat fee based model will make it more cheaper for small businesses to offer a mobile payment solution. According to Greg Hammermaster, president of Sage Payment Solutions:

SMBs need to look at total cost of ownership when it comes to selecting a mobile payments solution. Some competing mobile payments offerings add 1 percent plus upwards of 37 cents to the processing fees, which can easily turn into well over $130 in extra fees for every $10,000 in credit card volume. While this pricing is good for individuals that don’t process a lot of credit card transactions, it can be quite costly for businesses using their mobile device to process credit cards on a regular basis.

Sage’s mobile payment service can also be used with an optional card reader (card swiper). Sage also announced that its payment service is PCI (Payment Card Industry) compliant and all user data flowing through the system is encrypted before it leaves the user’s cell phone. In addition to this no personal data is ever retained by Sage during the entire payment process.

Mobile payments market is still in its initial stages, so its too early to say whether transaction based payments will triumph over flat fees or vice versa. But one thing that is becoming obvious now is that the space will see fierce competition from the likes of Apple that plans to launch its own mobile payment service, Telecom players like O2, and Ericsson that have already announced plans to launch a mobile wallet service and traditional credit card companies like Visa that are about to offer mobile credit payment options to their users.