Verifone Cabailities

1. VERIFONE –
DESIGN
CAPABILITIES
Burke Ryder
12/10/2011
IS 714

2. VERIFONE – COMPANY REVIEW
 Verifone is a global leader in secure electronic payment solutions
 Provider of point-of-sale credit card readers and PIN pads
 Connects merchants, customers, and credit card networks
 The payment solutions provider for 70 percent of the top 200 retail
companies in the US
 Over $1Billion in revenues in 2010
 Main customers are financial institutions, payment
processors, petroleum companies, large retailers, government
organizations, and healthcare companies
 System solutions are able to process a wide array of payment
types, including debit/credit cards, contactless/RFID cards, and most
recently smart phones
 Services include system consulting, deployment, on-site and
telephone-based installation and training

3. CORE COMPETENCIES & CAPABILITIES
Verifone Services:
Consulting
POS Terminals
Security
Support

4. STRATEGIC PARTNERSHIPS
 Verifone’s relationship to merchants amounts to transaction
partnerships
 The more strategic partnerships are with the credit card
companies that work to create and evolve security standards
 Additional strategic partnerships revolve around Verifone’s point-
of-sale technology:
 Google - Verifone enabled several merchants to accept payment via the
Google wallet in a trial of mobile payment technology
 PayPal – Planned integration of PayPal payment acceptance on the PayWare
mobile application
 Chase Paymentech – joint initiative to expand end-to-end encryption using
VeriShield and Chase’s base of retail merchants

5. CENTRAL CAPABILITY: SECURITY
• Verifone is an industry leader in providing systems and
software solutions that meet both government and
industry security standards.
• Verifone is compliant with the security standards set
forth by the Payment Card Industry Security Standards
Council
• Newest security solution is called VeriShield, which
protects sensitive consumer magnetic stripe data
captured from credit and debit cards at the point of
sale. Data is encrypted as soon as the card is
swiped, preventing merchant access to detailed
customer data. This makes is easy for merchants to
achieve certification of data security standards.

6. DESIGN RECOMMENDATION
Verifone creates the most value for customers through their secure
transactions. The hardware and services they supply will become
commoditized as the market evolves, but people will trust the
Verifone name. Their encryption technology is what will set them
apart from competitors.
I recommend that Verifone continue to foster their existing strategic
relationships with the credit card companies to stay current with
regards to security standards,. However, if credit card companies
are slowly phased out of their positions of prominence by the
emergence of payment capabilities from Google and Apple, Verifone
will have to revisit their strategy and establish supplementary
partnerships in order to maintain their leadership in encryption
technology.

7. SOURCES
 1. PAY 10-K, Verifone Annual Report, 10/31/2010
 2. http://www.verifone.com/
 3. Ecommerce Journal, “Chase Paymentech and VeriFone partner for credit
card data protection”, October 27, 2009, http://www.ecommerce-
journal.com/news/24908_chase-paymentech-and-verifone-partner-credit-card-
data-protection
 4. Forden, Sara and Kharif, Olga. “VeriFone Cleared to Buy Hypercom in
Settlement With U.S. Antitrust Agency”, Bloomberg, Aug
4, 2011, http://www.bloomberg.com/news/2011-08-04/verifone-to-sell-hypercom-
unit-to-gores-group-in-u-s-antitrust-settlement.html
 5. Stamas, Ted. “VeriFone Systems: Your Cash Ain't Nothing But Trash”, The
Ithaca Experiment, April
18, 2011, http://ithacaexperiment.blogspot.com/2011/04/verifone-systems-your-
cash-aint-nothing.html
 6. Sutherland, Randall. “VeriFone PAYware Mobile Enterprise iPhone Card
Reader”, TopTenReviews, http://iphone-card-reader-
review.toptenreviews.com/verifone-payware-mobile-enterprise-iphone-card-
reader.html