Never heard of this Kagi company. (But what else is new?)
What is the import of its bankruptcy — ie, why should anyone care?
Kagi was a payment processor that was started more than two decades ago, before PayPal was a thing, before most people could get credit card merchant accounts of their own. They allowed software developers to take money for shareware programs instantly; they handled the credit card transaction and they sent registration codes to the buyers. Without them, shareware might never have caught on.
They went bankrupt because they ended up taking a problematic client that committed fraud on a massive scale, costing Kagi hundreds of thousands of dollars.
A lot of small developers are now left scrambling trying to figure out how to sell registered versions of their software. PayPal lets them take money, but that's all it does. Kagi handled the servers and software that automatically sent registration codes to users as soon as they paid for the software; now, that's something that developers must do by hand.
