Enabling Technologies

Verifone continues focus on Proximity Payments and Retail Mobility Globally

MEDICI

Verifone acquired 10 companies since 2010 with a total disclosed value of $1,353m (for 6 transitions). The acquisitions were in the field of payment gateways, POS solutions, card reader components and interfaces, transaction switching solutions, and cashier technologies. Though generic reasons behind the acquisitions were to provide better customer service, expanding product portfolio, geographical, and product/services expansion, a deeper insight into Verifone’s acquisition reveal following trends:

  • Focus on Proximity Payments and Retail Mobility
    • Verifone acquired Global Bay (a leading provider of next-generation mobile retail solutions) to expand into Retail Mobility. It was part of Verifone's strategy to bring the power of mobile into the world of retail and payments, extending new smartphone- and tablet-based shopping and payment experiences to retail organizations
    • Verifone acquired Lift Retail (a network-connected digital marketing hub that integrates with point-of-sale systems (POS) in the convenience store and petroleum retailing market) and incorporated it into its solutions portfolio as a product and services offering called Lift Retail Solutions. Acquisition of encryption leader Semtek was intended to strengthen focus on proximity payment
    • Acquisition of WAY Systems states the need of payment companies to gain access to intellectual property. WAY Systems possessed substantial intellectual property and reseller relationships that augmented Verifone's mobile payment solutions strategy. The Company was granted numerous patents in the U.S., Europe and China for a range of intellectual property, including the connection of a mag-stripe reader to a mobile phone, PDA or smartphone 
  • Geographical expansion: Verifone acquired Point International AB to strengthen its position in Europe. Point is Northern Europe's largest provider of payment and gateway services and solutions for retailers. Verifone completed acquisition of Hypercom Corporation as Hypercom had presence in a number of important markets which enabled Verifone to accelerate overseas growth, increase innovation and build value for customers, employees and shareholders. Verifone expanded into South Korea with the acquisition of Orange Logic (a payment systems provider in that country). Verifone’s acquisition of EFTPOS New Zealand Ltd. was a move to cement Verifone’s position in electronic proximity payments market primarily in SEAAK region
  • Focus on services-based alternative payments infrastructure. Verifone acquired Point (Northern Europe's largest provider of payment and gateway services and solutions for retailers) and EFTPOS New Zealand Ltd with an aim of creating the world's largest infrastructure for rapid deployment of alternative payments

Verifone acquisitions in payment industry

Verifoneacquisitionsin

Acquisition rationale

  1. VeriFone acquired EFTPOS New Zealand Limited to expand its presence in New Zealand market. This acquisition provided VeriFone with comprehensive software, services and distribution resources to serve New Zealand with payment solutions and managed services, leveraging its Point payments-as-a-service platform
  2. Verifone acquired Lift Retail Marketing to Enhance Rich Media 'Offer' Delivery. Lift Retail will be incorporated into VeriFone's solutions portfolio as a product and services offering called LiftRetail Solutions, which will integrate with all leading retail POS systems in the convenience store/petroleum segment
  3. VeriFone acquired Point International AB for $818 M. This acquisition supported company’s vision of offering everywhere a managed service to easily accept all existing payment types, including the evolving alternative and mobile payment methods being offered by traditional card brands and new entrants such as Google, PayPal, Groupon and Isis
  4. VeriFone acquired Global Bay Inc. to expand mobile retail market. The acquisition was the latest development in VeriFone's strategy to bring the power of mobile into the world of retail and payments, extending new smartphone- and tablet-based shopping and payment experiences to retail organizations
  5. VeriFone acquired Destiny Electronic Commerce for $37 M. This acquisition enabled company to expand the company's presence as a leading provider of secure payment technologies, services and solutions at the point of sale for Sub-Saharan Africa and the Indian Ocean Islands
  6. VeriFone acquired Point of Sale solutions business of Gemalto, as part of their strategic partnership. This acquisition benefited both company’s customers from access to VeriFone's full payment solutions product line
  7. VeriFone acquired Orange Logic Ltd. This acquisition enabled company to introduce its secure electronic payment product line into the Republic of Korea, along with an existing domestic product line and customer base
  8. VeriFone acquired Hypercom Corporation at $429 M. This acquisition enabled company to grow and enhance all major product lines that existed prior to completing this acquisition, bolstered with the strong VeriFone brand identity
  9. VeriFone acquired Semtek Innovative Solutions Corporation at $18 M. This acquisition enabled the company to integrate the development, sales, implementation and support of end-to-end encryption solutions into the existing VeriFone organization to better fulfill customer needs, increase revenue and enhance support
  10. VeriFone acquired WAY Systems Inc for $9 M. This acquisition enabled the company to offer continuous non-stop support for all existing WAY mobile systems, bolstered by VeriFone's extensive mobile portfolio, including PAYware Mobile and VX Evolution secure payment systems

About Verifone Systems Inc.

Verifone designs, markets, and services electronic payment solutions at the point of sale (POS) globally. It provides countertop electronic payment systems that accept card payment options, such as NFC, mobile wallets, chip and PIN, and contactless payments, as well as support credit and debit card, EBT, EMV, and other PIN-based transactions; an array of software applications and application libraries; and portable solutions that support 3G, GPRS, Bluetooth, and WiFi technologies. Verifone serves financial institutions, payment processors, petroleum companies, transportation companies, government organizations, healthcare companies, quick service restaurants, taxi fleets, advertisers and media companies, merchants and retailers; and distributors, resellers, system integrators, and independent sales organizations.Verifone operates in more than 150 countries worldwide and employ nearly 5,000 people globally.It is headquartered in San Jose, California, US

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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