back to article Thinking about processing a payment, Sage Group? Biz confirms mulling sale of Sage Pay

Shape-shifting accounting software outfit Sage has confirmed it is seeking to offload the Sage Pay division. The London Stock Exchange-listed company made the admission in response to a report that it had recently hired investment bank Rothschild to market the division. While insisting "there can be no certainty that this …

  1. Pascal Monett Silver badge

    "making a push to the cloud"

    But of course, go and put all your accounting details in The Cloud (TM). What's the worst that could happen ?

    Well, let's see :

    - your entire account can get lost

    - your account can be pwned and figures and such made public

    - your financial details can get hacked and transfers made without your knowledge or consent

    - your provider can get hacked and your account pwned through no fault of your own

    Do I really have to continue ?

    1. AMBxx Silver badge
      Thumb Up

      Re: "making a push to the cloud"

      I keep having this argument with various accountants. They just don't understand.

    2. Captain Scarlet Silver badge

      Re: "making a push to the cloud"

      Well they have an added bonus, those of us on their in premise ERP systems (Line 500/1000 or X3)will ensure unless Sage sell off their Cloud Services division they aren't going to go belly up.

    3. brucedenney

      Re: "making a push to the cloud"

      Only of course they re-branded their desktop software sage50 cloud, so it is a hybrid that resides on the desktop and syncs to the cloud for cloud services. Therby giving you the best of both worlds in functionality and total control over loosing your data yourself.

  2. mark l 2 Silver badge

    It will be a shame if Sage Pay gets bought up and merged with another payment processor, as the more choices merchants have to choose who processes their online payments keeps the prices down.

    Paypal recently increased their processing fees by 10p per transaction from 20p to 30p, which i know has meant some businesses will have thousands of pounds of increased fees of the course of the year for no extra services. And those processing fees are none refundable so even if you refund the customer for the full amount of their payment you don't get back the 30p

  3. Anonymous Coward
    Anonymous Coward

    Minnow minnow (ba dee bedebe)

    "the accounts for the year ending 30 September 2018 shows revenues of £32.86m, up from £28.69m in the previous year."

    Considering that's (gross) revenue, it really doesn't sound like much at all for a payment processor. That's the type of field where I'd have assumed turnover was measured in the billions, not millions.

    I'm not surprised the article describes it as a "minnow".

    1. AllTheShizzle

      Re: Minnow minnow (ba dee bedebe)

      I took that to be money to SagePay, ie their profit and loss in providing the service. So like transaction fees basically. Not the actual money going through their service.

  4. David Austin

    Why?

    This.. just seems kinda odd.

    Sage pay and Sage Accounts/Payroll compliment each other so well, reinforcing each other's products: I'm not paid nearly enough consultancy fees for anyone to listen to me, but I'd have thought taking the long term, consistent profit from that division over a one off chunk of cash is the better idea...

    1. Roland6 Silver badge

      Re: Why?

      Particularly as Sage has been in the subscription software business far longer than Apple, MS et al.

      Suspect once Sage stops being a one stop shop, there will be many businesses looking elsewhere.

      However, as the article noted, it is consistent with Sage selling its US payroll business, which also doesn't make long-term sense - which does raise a question as to when Sage will seek to sell off its UK payroll business.

      Perhaps they are lining themselves up to be a "pure play software business" and get taken over by HPE...

      1. Steve K Silver badge

        Re: Why?

        and get taken over by HPE...

        ..or MicroFocus

    2. Nick Ryan Silver badge

      Re: Why?

      It does stink of short-termisn. As in, one-off large payouts for a few people with the overall business suffering in the long term.

      The service makes a profit and ties in with their other services. If the bundling of the service is a commercial issue through customers from one one not wanting to be forced to use the other, or potential partners and customers of the payment system being put off the service through the links with Sage then either going the less nuclear route of separating the business into a separate concern or just making it very clear that the use of one does not depend on the other in any way and good and fair terms will be offered to all users, including competitors to Sage's accountancy/payroll business, them that work too. But just selling off a profitable and I can only guess ongoing profitable into the forseeable future, component of the business that is quite linked just feels like typical short term cashing in.

  5. NeilPost Bronze badge

    Sage pay

    That’s a shame, as have a lot of time as a user/reseller of their Card Payment Merchant Services Managed Payment Service.

    I guess it will go to Worldpay, Barclays Payment, Elavon, Chase PaymenTech, AJB, Adeyn etc.

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