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VeriFone Up on Wirecard Deal, Retains Focus on Indonesia
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VeriFone Systems, Inc. (PAY - Free Report) was up nearly 4.3% in yesterday’s trading session after the company announced that it has entered into a five-year strategic alliance with Germany-based electronic payment processing company, Wirecard AG.
The two entities will be joining forces to take forward the expansion of the point-of-sale (POS) market in Indonesia and thereafter into other Asia-Pacific countries.
Both VeriFone and Wirecard will be working through their Asian subsidiaries, VeriFone Systems International and PT Prima Vista Solusi, respectively. The two companies plan to jointly develop an integrated range of payment commerce services. VeriFone, specifically will be deploying its Engage and Carbon product ranges, which will use Wirecard’s software platforms for enabling the electronic payments. Wirecard can also leverage its in-depth knowledge of the Indonesian market, which is a positive.
Of late, Indonesia has become an important market from the economics point of view. Not only does the country have a massive population but more importantly, the electronics payment market here is still at a nascent stage, therefore leaving adequate scope for rapid growth.
As the press release stated “Though Indonesia is largely a cash-dominated society, the payment cards market is developing significantly with payments card transaction volume increasing by about 124 percent in 2015 as compared to 2010, according to Lafferty Group.”
This is probably the reason that VeriFone and Wirecard despite being rivals are collaborating to tap this impressive growth opportunity.
The news undoubtedly comes as a relief for VeriFone investors as they were still adjusting to the cut in outlook for the next quarterly results. This alliance would also enable the company to stabilize its performance in the Asian markets where at present it has been seeing intensive pricing pressure from peers. However, in the near term, the woes will likely persist.
Currently, VeriFone has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the broader tech sector include Internap Corporation , Atlassian Corporation Plc (TEAM - Free Report) and Castlight Health, Inc. (CSLT - Free Report) , each carrying a Zacks Rank #2 (Buy).
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VeriFone Up on Wirecard Deal, Retains Focus on Indonesia
VeriFone Systems, Inc. (PAY - Free Report) was up nearly 4.3% in yesterday’s trading session after the company announced that it has entered into a five-year strategic alliance with Germany-based electronic payment processing company, Wirecard AG.
The two entities will be joining forces to take forward the expansion of the point-of-sale (POS) market in Indonesia and thereafter into other Asia-Pacific countries.
Both VeriFone and Wirecard will be working through their Asian subsidiaries, VeriFone Systems International and PT Prima Vista Solusi, respectively. The two companies plan to jointly develop an integrated range of payment commerce services. VeriFone, specifically will be deploying its Engage and Carbon product ranges, which will use Wirecard’s software platforms for enabling the electronic payments. Wirecard can also leverage its in-depth knowledge of the Indonesian market, which is a positive.
Of late, Indonesia has become an important market from the economics point of view. Not only does the country have a massive population but more importantly, the electronics payment market here is still at a nascent stage, therefore leaving adequate scope for rapid growth.
As the press release stated “Though Indonesia is largely a cash-dominated society, the payment cards market is developing significantly with payments card transaction volume increasing by about 124 percent in 2015 as compared to 2010, according to Lafferty Group.”
This is probably the reason that VeriFone and Wirecard despite being rivals are collaborating to tap this impressive growth opportunity.
The news undoubtedly comes as a relief for VeriFone investors as they were still adjusting to the cut in outlook for the next quarterly results. This alliance would also enable the company to stabilize its performance in the Asian markets where at present it has been seeing intensive pricing pressure from peers. However, in the near term, the woes will likely persist.
Currently, VeriFone has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the broader tech sector include Internap Corporation , Atlassian Corporation Plc (TEAM - Free Report) and Castlight Health, Inc. (CSLT - Free Report) , each carrying a Zacks Rank #2 (Buy).
VERIFONE SYSTMS Price and Consensus
VERIFONE SYSTMS Price and Consensus | VERIFONE SYSTMS Quote
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