Longtime Shareware Payments Processor Kagi Shuts Down

by

After more than 20 years in operation, once popular software payments processor Kagi yesterday announced on its home page that it has shut down effectively immediately. Longtime Mac users are probably familiar with Kagi, which assisted numerous small developers in accepting credit card payments from users.

Kagi arose in the 1990s on the popularity of shareware, which allowed developers to widely distribute their software with time or feature limits as trial versions and then offer unlock codes for a fee to open up full functionality. Processing credit card payments for these unlock codes was difficult for small developers who didn't have the manpower or financial resources to handle payment issues or deal with setting up merchant accounts with credit card companies, and Kagi provided a solution for those developers by handling the payment processing, code distribution, and development and maintenance of store pages.

kagi_shutdown
With the evolution of payment processing in the form of PayPal and Stripe, Kagi's popularity waned, though it continued to be used by a number of small developers. Ultimately, however, that user base was not enough to sustain the service, with founder Kee Nethery also citing a decade-old case of supplier fraud that Kagi was never able to recover from as a major reason for finally closing down.

Based on the notice posted on Kagi's site and emails sent to developers using the service, a third-party company is "dividing up the Kagi assets and distributing them to the creditors," so it is possible some developers may not receive the full amount they are owed as Kagi shuts down.

Tag: Kagi

Top Rated Comments

keysofanxiety Avatar
58 months ago
Not familiar with this company. But reading this on their homepage peaked my interest:

"For the past ten years Kagi has been struggling to recover from financial losses due to a supplier fraud situation. We have reduced the debt but the recovery has failed and forced us to close.


We are sorry we failed you."


:(

Anybody have any information about what supplier fraud situation they're talking about? A Google search didn't seem to throw up much of an answer.
Score: 6 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
58 months ago
Wow. They've been around in shareware apps since the '90s. Remember having to use them for LOTs of shareware back in the OS 7, 8 and 9 days.
Score: 6 Votes (Like | Disagree)
lazyrighteye Avatar
58 months ago
I blame Kanye.
Score: 6 Votes (Like | Disagree)
CFreymarc Avatar
58 months ago

Anybody have any information about what supplier fraud situation they're talking about? A Google search didn't seem to throw up much of an answer.

There should still be a Slashdot article about this fraud if you can access archives that far back.

What I remember is a supplier had a piece of shareware coded such that is was a Trojan running it's own, non-end user initiated, false purchases with fraudulent and stolen credit card numbers via the Kagi library linked in the app.

Kagi was caught holding the bag of liability to banks that paid out on the transaction. They could no go after the shareware supplier as they were in Asia and outside of extradition.
Score: 3 Votes (Like | Disagree)
Sharewaredemon Avatar
58 months ago
I gotta show my face here cause I mean, I got this username from a shareware game.

Wow. I remember that. Haven't read the word "shareware" in a decade or so. I am getting old I guess. :)

what you never see my posts?!?!?! :D
Score: 2 Votes (Like | Disagree)
Baumi Avatar
58 months ago
For anyone unfamiliar with Kagi: Back in the 1990s they were the payment processor for Mac shareware. If you ever bought any Mac software over the net at that time, you most likely dealt with them.
Score: 2 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...