Oct 21 , 2010
VeriFone, Gemalto forge strategic partnership
SAN JOSE--VeriFone Systems, Inc. and Gemalto announced a comprehensive strategic partnership, in which the two companies will jointly pursue new chip card solutions based on the global EMV payment standard, particularly as U.S. retailers and card networks increasingly acknowledge chip card and contactless technologies as a core component of a comprehensive security infrastructure.
In addition, the companies are in discussions for VeriFone to acquire Gemalto's point of sale (POS) solutions business.
Gemalto will become the preferred supplier of Machine-to-Machine (M2M) wireless modules and related solutions for VeriFone payment systems.
Gemalto and VeriFone believe customers of Gemalto’s POS solutions will benefit from access to VeriFone’s full payment solutions product line. Based in France, the POS solutions business would also serve as an ideal launching pad for VeriFone's planned European expansion campaign.
With Cinterion Wireless Modules, Gemalto is also the leading provider of industrial M2M wireless communication modules and solutions. M2M enables the remote connectivity and administration that is crucial in deploying over-the-air activation, software updates and post-issuance services to wireless POS solutions already in the field. With the preferred supplier relationship for Gemalto M2M technology, VeriFone will continue to benefit from the quality of Cinterion wireless modules and will be able to take advantage of the latest Gemalto developments in M2M packaged solutions.
Commenting on the engagement, VeriFone CEO Douglas G. Bergeron said: “This unique partnership between world leaders assists both companies in focusing on key strategic areas while relying on a trusted partner to provide complementary solutions. We look forward to developing with Gemalto innovative EMV solutions, in particular for the U.S. market. Gemalto is the world leader in providing card-based EMV solutions to bank issuers and VeriFone is the world leader in providing EMV technology to retailers and acquirers.”
Gemalto CEO Olivier Piou added: “VeriFone’s global leadership in retail payment solutions will provide our customers with assurance of the deepest, broadest investment and competencies in this area. In addition to partnering on EMV related growth prospects, in particular in the US, we look forward to being the supplier of core wireless components for the most reliable technology provider in the rapidly expanding wireless POS and mobile payment solutions domain.”