VeriFone Systems, Inc.PAY has renewed its strategic alliance with Heartland Payment Systems, Inc. HPY to develop solutions for enhancing its security and EMV-ready payment processing offerings for merchants.
VeriFone will be offering its EMV and NFC-enabled VX 520 payment terminal along with its VX 805 PIN pad in conjunction with Heartland’s secure E3 end-to-end encryption and tokenization solution. This unique combination will not only create more reliable and efficient solutions for merchants but will take them a step further to meet growing demand stemming from the EMV chip card fraud liability shift in Oct 2015.
Separately, in another announcement, VeriFone unveiled its latest cloud point-of-sale (POS) solutions for its Mobile Suite. Verifone Cloud POS based on Android is designed for small-and-medium-sized businesses (SMBs). The new POS will be distributed via the company’s Independent Sales Organization (ISO) and acquirer partner network. Also, the company revealed that it is making Verifone Point (its Payment as a Service Payment) available to SMBs in the U.S.
Such initiatives for strengthening its product portfolio are likely to bode well for the company. VeriFone already has a dominant position in the electronic payment systems and services market, having installed more than 27 million system terminals and about 50% of the world’s EMV capable terminals. The company estimates an increase of 30% in the EMV terminals market after the shift of Oct 2015, which will make it mandatory for merchants to install EMV-capable terminals. We believe that the company has strong growth potential given the rollout of EMV enabled cards in the U.S.
VeriFone has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Fiserv, Inc. FISV and The Western Union Company WU. Both stocks have a Zacks Rank #2 (Buy).
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