VeriFone Systems, Inc.
(
PAY
) recently inked an agreement with Austrian company PayLife to
install new VeriFone VX 680 wireless solution and VX 825 PIN
acceptance system to upgrade or replace the existing systems for
monetary transactions.
VeriFone provides electronic payment system solutions for the
financial, retail, hospitality, petroleum, transportation,
government and health care markets.
PayLife is a collaboration between major banks, which provides
card acceptance services to companies across the retail
environment, the oil industry and the tourism and service
sectors.
As per the agreement, PayLife will also deploy a number of
VeriFone QX 1000 devices to provide immediate replacement or
upgrade of existing devices.
The agreement with VeriFone will enable PayLife to replace its
existing installed payment systems with the new VeriFone systems
that feature integrated contactless with Near Field Communication
(NFC) support and are designed to meet the latest PCI PTS 3.0,
ZKA, Europay, MasterCard and VISA (EMV) and Austrian security
requirements.
Back in September 2006, the Payment Card Industry Security
Standards Council (PCI SSC) was formed by
American Express
(
AXP
),
Discover Financial Services
(
DFS
), JCB,
MasterCard
(
MA
) and
Visa International
(
V
).
The prime motive behind these standards was to oversee and
unify industry standards in the areas of payment card data
security, referred to as the PCI standards.
Over the last two years, VeriFone has been focusing on
transforming its business in response to the rapidly evolving
needs of customers, retailers and payment innovators across the
world. The company aims to offer a managed service that can
easily accept all existing payment types, including the evolving
alternative and mobile payment methods being offered by Google
and PayPal, Groupon, Isis, Visa, MasterCard and American
Express.
There is a global trend toward electronic payment
transactions, away from cash and checks. This trend has been
accelerated by the use of credit and debit card as a mode of
payment, especially PIN-based debit. VeriFone is further focusing
on payments-as-a-service as it continues to offer encryption
services, content and advertising, gateway services, e-commerce
capabilities and cloud-based retail application processing, which
provides it with an edge over its competitors.
PayLife selected VeriFone for its innovative and consumer
friendly payment solutions. VeriFone, in turn will
accommodate all the card types, which are accepted by
PayLife.
VeriFone continues to impress on the back of strategic
acquisitions and growing high margin services mix in its revenue
stream. We continue to maintain our Neutral recommendation on
VeriFone in the long run. Our recommendation is supported by a
Zacks #3 Rank, which translates into a short-term rating of
Hold.
AMER EXPRESS CO (AXP): Free Stock Analysis
Report
DISCOVER FIN SV (DFS): Free Stock Analysis
Report
MASTERCARD INC (MA): Free Stock Analysis
Report
VERIFONE HLDGS (PAY): Free Stock Analysis
Report
VISA INC-A (V): Free Stock Analysis Report
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