VeriFone and Gemalto plan joint EMV chip push in US
VeriFone Systems, Inc. (NYSE: PAY) and Gemalto (Euronext NL0000400653 - GTO) today announced further developments in their broad strategic partnership. First announced in October 2010, the partnership entails cooperative efforts in EMV chip card solutions, the handover of Gemalto's point of sale (POS) solutions business to VeriFone, and Gemalto's appointment as the preferred supplier of Machine-to-Machine (M2M) wireless modules and related solutions for VeriFone payment systems.
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The companies today said they have discussed initial plans for joint introduction of EMV chip and pin solutions for the U.S. market. As U.S. banks, retailers and card networks increasingly acknowledge chip card and contactless technologies as a core component of a comprehensive security infrastructure, the companies intend to introduce EMV smart card solutions that provide a superior cardholder experience and complete data protection at the point of sale. Combining the two companies' expertise for both issuing and accepting smart cards will provide a ready infrastructure to advance the U.S. market towards a much more secure and convenient payment method.
Furthermore, the parties have finalized the transfer of the POS solutions business, with closing effective December 31, 2010, and VeriFone has assumed the fulfillment of existing customer relationships and product requirements for Gemalto POS customers, who are mainly located in the Middle East, South Africa and India. Concurrently, Gemalto has been designated VeriFone's preferred supplier of M2M wireless modules and related solutions. No financial terms were disclosed.