VeriFone Systems, Inc.
(PAY - Free Report
) recently teamed up with China Mobile and Bank of China whereby both the banks will deploy VeriFone’s managed services solutions for NFC payment and mobile marketing in Shen Yang, China.
In addition, Shen Yang Badatong E-Commerce Co., Ltd. is in the process of installing VeriFone NFC acceptance systems at thousands of merchant location, which will enable payment and redemption via NFC at the point of sale.
This is the first time that VeriFone’s PAYMEDIA Mobile Marketing Platform (MMP) will be implemented. This end-to-end solution will allow merchants, brands and third parties to launch campaigns to mobile wallet subscribers on a wider base.
VeriFone’s system solutions consist of point of sale (POS) electronic payment devices which run proprietary and third-party operating systems, security and encryption software and certified payment software as well as other third-party value-added applications.
The system solutions are able to process a wide range of payment modes, which include signature and PIN-based debit cards, credit cards, contactless/radio frequency identification (RFID) cards and tokens, Near Field Communication (NFC) enabled mobile phones, Europay, MasterCard and VISA (EMV) smart cards, pre-paid gift and other stored-value cards, electronic bill payment, signature capture, and electronic benefits transfer (EBT).
The alliance will enable consumers and merchants to fully leverage the power and simplicity of NFC technology supported by Bank of China and China Mobile.
On the other hand, China Mobile and Bank of China expect to issue 50,000 SIM cards initially, which will be marketed to subscribers through bank branches and China Mobile customer support centers.
VeriFone plans to replicate this service in other cities and provinces across China and the world as well as through partnerships with wallet providers, MNOs and integrators.
Meanwhile, the fourth quarter results missed the estimates and led to a significant decline in share price. Competition continues to be stiff from the likes of NCR Corp.
(NCR - Free Report
) , which recently acquired Retalix Ltd. approximately $650 million. Most recently, VeriFone has also been sued by Creative Mobile Technologies LLC for approximately $250 million over an agreement to place advertisements on screens in New York taxis.
As of now, we maintain a Neutral recommendation. However, the near-term pressure forces us to confer a Zacks #4 Rank on VeriFone, which translates into a short-term rating of Sell.