The biggest online retailers are losing money after their digital payments failed to secure them for next year
A US-based financial services company is losing money on its digital payments and has closed more than 300 stores, according to a report from Bloomberg.
The financial services firm, CoreLogic, said it had been unable to secure payment terminals at nearly 2,000 locations across the US, including those for its debit card, credit card, cash-back cards, loyalty program, and mobile app.
The firm had estimated it had secured around $300 million in digital payments in the first half of the year.
CoreLogic said the closure of the stores was due to insufficient capacity and the loss of business in the industry.
“We expect our digital payment operations to be impacted by the current economic climate, and CoreLogics is reviewing its strategy to mitigate these risks,” the firm said in a statement.
CoreLoc, a mobile payment provider that has more than 4,000 stores in the US and Europe, said the closures were due to its “lack of customer acceptance and a lack of customer support, as well as competition in the marketplace.”
CoreLoc said the company’s payment terminals had been “frozen” as a result of the “dire economic environment.”
The firm said its network had experienced “several weeks of limited capacity.”