To expand its payment operations,
) joined hands with three leading mobile point-of-sale (:mPOS)
providers viz. iZettle, SumUp and Swiff. The deal is aimed at
deploying secure mobile acceptance terminals across various
locations to realize the transition of payments from paper to
electronic mode. Furthermore the company approved Anywhere
Commerce and Miura Systems to process Visa payments.
This alliance will allow merchants to accept Visa payments
through mobile technology. As per the deal, to get their mobile
hardware and software verified, iZettle, SumUp and Swiff will
participate in the Visa Ready Program. The Visa Ready Program
aims at merging Visa with the mPOS providers to offer merchants
and consumers with a convenient yet safe payment option.
The deal will allow iZettle, SumUp and Swiff to access Visa's
best practices, APIs (Application Program Interfaces) and SDKs
(Software Design Kits). These would include tools, direct
connection to Visa, value-added services and Visa Ready
As per the agreement the mPOS providers can access reference
applications and tools to facilitate the ongoing development of
magnetic stripe, EMV-chip (contact and contactless), and mobile
acceptance solutions. To simplify the processing of the EMV-chip
transactions, they will be connected to Visa in some countries
with the help of Visa POS Solutions platform or payment gateways
like CyberSource and Authorize.Net.
In addition, the companies might also be exposed to Visa's
value-added services, like instant redemption of special offers
at the point-of sale. Additionally, on approval by Visa, iZettle,
SumUp and Swiff will be permitted to use the Visa Ready symbol to
endorse their devices. Anywhere Commerce and Miura Systems are
already permitted to use the symbol to market their Visa approved
Mobile acceptance technology is judged best for the electronic
mode of payment to all types of merchants, consumers and
financial institutions. Through the use of mPOS technology,
merchants who were out of the purview of accepting card payments
will now be exposed to the electronic payment market. It will
also benefit consumers through the convenience of mobile
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Micro and small merchants have responded to this mPOS acceptance
solution vastly in recent years, which has helped the transition
of payments to electronic mode. This is evident from the
burgeoning usage of the number of mPOS terminals from 2011 to
2012. mPOS terminals increased 111% year over year to 9.5 million
in 2012 and is anticipated to reach as high as 38 million by
Despite growing acceptance of mPOS payment mode, nearly 19
million or 70% of the total number of merchants in the United
States are yet to accept the electronic payment methods. When
transactions at these merchants are summed up it would translate
to a potential yearly migration of more than $1.1 trillion from
paper to electronic mode. So, this provides a huge scope for Visa
to tap the prospective clients to enhance its business.
In the fiscal second quarter 2013, Visa's revenues increased
14.7% year over year to approximately $3 billion. We expect the
deal to help the company attain its goal of strengthening the
customer base and thereby bolster revenues further.
Visa currently carries a Zacks Rank #2 (Buy). Among other stocks
) carries a favorable Zacks Rank #1 (Strong Buy) while
Fidelity National Information Services Inc.
Official Payments Holdings Ltd.
) share the same Zacks Rank as Visa.