Verifone is an American multinational company headquartered in San Jose, California, which provides technology for electronic payment transactions and value-added services at the point of sale.
Verifone sells payment systems operated by merchants, which face consumers and supermarkets to the finance, retail, hospitality, petroleum, government and health care industries. The enterprise system solution consists of POS electronic payment devices running their own operating systems, security and encryption software, and certified payment software, and designed for consumer and unattended environments.
The system solution processes various types of payments, including debit card-based personal identification and card identification (PIN), credit cards, contactless/radio frequency cards, smart cards, pre-paid prizes and other stored value cards, electronic payment bills, check authorization and conversion, signature capture and Electronic Benefit Transfer (EBT).
The company's architecture allows multiple applications, including third-party applications, such as gift cards and loyalty card programs, health insurance feasibilities, and time and attendance tracking, and enables these services to be on the same system without requiring re-certification for the addition of new applications.
Video Verifone
Overview
The Company uses the Verifone name and logo worldwide as a major part of the company's branding and its products, and registers this trademark in the major jurisdictions where the company conducts business, including the US and the European Union. On October 31, 2013, the company entered into a trademark registration in 22 jurisdictions (including EU registrations covering state-level registration previously submitted by the company) for trademarks 'VERIFONE' and in 32 jurisdictions (including enrollment in the EU) state registration previously proposed by the company) for trademark 'VERIFONE', including the logo of the tape. On November 3, 2014, the Company launched a new corporate logo, a new brand identity representing the new Verifone that drives the future of commerce in a rapidly growing digital world where electronic payments, commerce and mobility converge. From its inception as the first payment device manufacturer, Verifone's products and after-sales service offerings have greatly changed. Verifone offers payment technology expertise, solutions, and services that add value to the point of sale with a customer-operated POS payment system, which customers face and self-serve.
Founded in Hawaii, USA in 1981, Verifone now operates in more than 150 countries worldwide and employs nearly 5,000 people worldwide. The steady growth of Verifone has come both organically through dedication to innovation and strategic partnership, and from intelligent acquisitions. The main focus and growth areas for the company include mobile commerce, security, services, and emerging global markets.
As a global company, Verifone has headquarters representing each of its global operating areas: San Jose, California; London, U.K.; Singapore; Turkey; and Miami, Florida. Verifone is dedicated to supporting local markets and needs with a direct presence in over 45 countries.
Maps Verifone
History
Verifone was founded by William "Bill" Melton and founded in Hawaii in 1981, and renamed himself after his first product, a name that stood for Verif ication teleph one .
Since the late 1980s, Verifone has held more than 60 percent of the US market, and during the 1990s the company captured more than half of the international market for such a system. In 1996, the company put the system to five million. Domestic and international sales of POS systems continue to make up most of Verifone's annual sales, which reached $ 387 million in 1995 and is expected to reach $ 500 million in subsequent years.
The sudden growth of the Internet, and in particular the World Wide Web, in the mid-1990s created a demand for secure online financial transaction applications. Verifone has led the way in designing applications that conform to Secure Electronic Transaction (SET) standards developed by Visa Inc. and MasterCard. With the acquisition of Enterprise Technologies Integration worth $ 28 million, the company that developed Secure HyperText Transfer Protocol (S-HTTP), and a $ 4 million equity investment in CyberCash, Inc., led by Verifone founder William Melton and with a 1996 partnership agreement with leaders Netscape Internet browser, Oracle Corporation, and Microsoft, Verifone has launched a series of software products targeted at consumers, merchants, and financial institutions that enable secure purchases and other transactions online. Internet purchases, which still generate at least $ 10 million in 1995, are expected to reach billions at the turn of the century. Verifone has also worked to marry smart cards to the Internet; in 1996, the company introduced the Personal ATM (P-ATM), a small smart card reader designed to be paired to a consumer home computer, which will allow consumers to not only purchase over the Internet, but also to "refill" the value on the card. Verifone also partnered with Key Tronic to incorporate the P-ATM interface directly into the company's computer keyboard.
Pioneer Transaction Automation in the 1980s
In the early 1980s, major credit card companies began to look for methods to reduce fraudulent processing and losses. In 1981, Visa and MasterCard began offering merchants discounts on their transactions if they agreed to use newly developed automated transaction technologies for all credit card purchases greater than $ 50. This step paved the way for the creation of an industry aimed at producing systems POS authorization. The initial system usually has a starting price of $ 900.
Verifone introduced its first POS product in 1982. By cutting operating costs and lowering production costs by outsourcing production, Verifone brought its first system into the market for $ 500. Working with Visa, Verifone quickly gained a strong POS market share. However, in 1984, the company took a major step toward achieving industry dominance with the introduction of its ZON credit card authorization system, utilizing an increase in processor speed and lower costs of both processor and memory, costing as little as $ 125, making it easier to convince traders retail to install the system in their store. The following year, the company's revenue grew to $ 15.3 million, generating a net profit of $ 864,000. That year, Verifone moved its headquarters to Redwood City, outside San Francisco, to get closer to the region's hardware and software engineering, and to its customers and investors.
The company doubled revenues, to about $ 30 million, in 1986. In January 1988, Verifone controlled more than 53 percent of the POS system market. Revenue has reached $ 73.4 million, with net income of more than $ 6 million. The following year, the company increased its dominance in the industry by purchasing business automation transactions Icot Corp., then second in the market with a share of 20.5 percent. This acquisition increased Verifone's revenue to $ 125 million. By then, Verifone had entered the international market, starting with Australia in 1988 and putting a ZON million system in Finland in 1989.
New Directions for the 1990s
Verifone became public in March 1990, amassing over $ 54 million. As the credit card industry matures, Verifone encourages to install its systems to new markets, such as restaurants, cinemas, taxis, and fast food restaurants, while developing software capacity to bring its systems into the health insurance market and health insurance and government functions, such as the state welfare system. International sales are also beginning to increase, as the use of credit cards is increasingly being accepted in overseas markets. VeriFone is also building its global operations, opening facilities in Bangalore, Singapore, UK, Dallas, and Ft. Lauderdale, in addition to Hawaii and California facilities. Launched in the Gemstone transaction system, which adds inventory controls, pricing, and other capabilities, Verifone is assisted by announcements from Visa and MasterCard that the company will no longer provide printed warning bulletins while requiring traders to seek authorization for all 1994 transaction credit cards.
These steps are increasingly pushing demand for Verifone products. Revenue jumped from $ 155 million in 1990 to $ 226 million in 1992. By then, Verifone had put the system into two million (at Fouquet's restaurant, near Paris, in 1991); in 1993, the Verifone system existed in over 70 countries, including its third system, in Brazil, representing the company's expansion in the Latin American market. International sales, which have donated less than ten percent of revenue before 1990, now account for more than 30 percent of the company's annual revenue of nearly $ 259 million.
New opportunities arose when banks began launching debit cards in the mid-1990s. Verifone is rapidly launching itself into this new market, producing a terminal designed with key pads for customers to dial their PIN number. But as the credit card and credit card market approaches saturation, Verifone is poised to launch itself in a new direction. While continuing its international expansion, surpassing four million systems installed in 1994, and maintaining its production capacity, doubling its production capacity with a new factory near Shanghai in China in 1994, Verifone has developed its primary focus for producing software applications, which offer integrated systems vertically solutions, including applications for standard computer operating systems.
Verifone is moving to take the lead in the upcoming smart card revolution, working with Gemplus International, the French-based card maker, and MasterCard International to form a SmartCash joint venture. To place the company close to technological developments in France and across Europe, Verifone opened a research and development center in Paris in 1994. The company launched its smart card in May 1995. The company introduced its Personal ATM, a palm-sized smart card. readers were able to read various smart card formats, in September 1996, with products expected to be delivered in 1997. Among the first customers who have signed to support P-ATM are American Express, MasterCard International, GTE, Mondex International, International Visa, Wells Fargo Bank, and Swedish Sparbanken Bank. Contracts for each call for a minimum purchase of 100,000 units; total market potential for devices is estimated at more than 100 million households. In addition, Verifone began developing smart card readers to complete and eventually replace the five million credit card and debit authorization systems.
In 1995, Verifone embarked on an aggressive first step towards entering an entirely new area of ​​Internet-based transactions. In May 1995, the company partnered with Broadvision Inc., an Internet developer, interactive television, computer network and other software, to the Verifone Virtual Terminal software - a computer-based version of the standard transaction terminal - with BroadVision's offerings, extending Verifone's product at outside the retailer's desk for the first time. In August 1995, however, Verifone took a bigger step into the internet transaction arena, with its $ 28 million acquisition of Enterprise Integration Technologies, the developer of the S-HTTP industry standard to maintain transactions through the World Wide Web. Verifone followed the acquisition by investing $ 4 million in William Melton's latest venture, CyberCash Inc., also working to develop an Internet transaction system.
In 1996, Verifone was ready with the Payments Transaction product line (PTAL), including the Virtual terminal interface for merchants who made sales with consumers; Internet Gateway or vGATE, to conduct transactions between merchants and financial institutions; and the Paid Window interface for consumers who make purchases on the Internet. After securing agreements from Netscape, Oracle, and Microsoft to include Verifone software on their Internet browsers, Verifone and Microsoft announced in August 1996 that the Verifone virtual point of sale (vPOS) will be included in the Microsoft Merchant System to be released later this year. Verifone's announcement about P-ATM, can be attached as a computer device, linking the company's smart card and Internet transaction attempts.
Hewlett-Packard acquired Verifone in a stock exchange deal worth $ 1.18 billion in April 1997. Four years later Verifone was sold to Gores Technology Group in May 2001. In 2002 Verifone was recapitalized by GTCR Golder Rauner, LLC. In 2005, Verifone was listed as a public company on the New York Stock Exchange (NYSE: PAY).
New Directions for the new millennium
In October 2004, Israel-based Lipman Electronics acquired British-based Dione plc to join its "NURIT" brand. On November 1, 2006, Verifone completed the Lipman acquisition, and added Dione and NURIT solutions to its portfolio for an undisclosed amount.
The company was formerly known as VeriFone Holdings, Inc. and renamed VeriFone Systems, Inc. in 2010. In 2014 the company did a rebranding as Verifone with a lowercase 'f'. Verifone is currently based in San Jose, California, and has sales and marketing offices worldwide. High economic growth abroad, coupled with infrastructure development, support from the government that seeks to increase value added tax ("VAT") and Sales Tax collection, and expanding the presence of IP and Wireless communications networks have generated revenue from abroad beyond the revenue generated of domestic sales. In particular, North American market share has fallen from 57.4% of total revenue in 2006, to only 39% or $ 359.14 million in total revenue for fiscal 2008. On the other hand, international operations are changing from only 42, 5% of total revenues in 2006 to 61% or $ 564.46 million of total revenue in 2008.
In April 2018, Verifone was acquired by Francisco Partners for 3.4 billion USD.
Products
Verifone, Inc. is an international manufacturer and designer of electronic payment solutions. The company divides its business into two segments: System Solutions and Services. System Solutions consists of operations associated with the sale of electronic payment products that enable electronic transactions. The Service Segment includes warranty and support services. In fiscal 2008, the Verifone System Solutions segment generated 87.5% of total revenues, which totaled $ 807.46 million, while the Services segment contributed 12.5%, or $ 114.46 million in revenue.
Its main product lines include a point-of-sale, merchant-operated, consumer-facing and self-service payment system for several industries, primarily finance, retail, hotels, petroleum, government and health markets. It provides electronic terminal payment terminals that accept mobile payment card, chip and PIN payment options, and contactless payments, including Near Field Communication (NFC) and support Credit and Debit cards, EBT cards, EMVs and other PIN-based transactions; various software applications and application libraries; and portable solutions that support 3G technology, GPRS, Bluetooth, and WiFi.
The company also offers a multimedia POS device facing the consumer; unattended and self-service payment solutions designed to enable payment transactions in self-service environments; and an integrated electronic payment system that combines electronic payment processing, fuel expenditure, and ECR functions, as well as payment systems for integration. In addition, it provides mobile payment solutions for various segments of the cellular point of sale environment; peripherals without contact; network access solutions; security solutions; payment-as-service-and other managed services, terminal management, payment-backed media, and payment system security solutions; and server-based payment processing software and middleware. Furthermore, the company offers equipment or maintenance repairs, gate processing, remote terminal management, post-contract software support, customized application development, help services, customer service, warehousing, and encryption or tokenisasi services.
Countertop and PIN Pads
The company's countertop solution accepts a variety of card payment options, including payment options using Near Field Communication (NFC) technology, mobile wallets, chips and PINs, QR codes, and contactless payments. The Generation VX Evolution desk device supports a variety of applications, such as pre-paid products, including gift cards and loyalty programs. The VX Evolution tool also integrates the company's NFC software technology to manage NFC-based wallets, apps and mobile programs. It also offers a variety of other VX model table devices, including hybrid devices that read both magnetic stripe and chip card transactions using a single card reader, offering options for various connectivity options, and battery operated and color displays. The company also supplies PIN bearings that support credit and debit cards, EBT, EMV, and other PIN-based transactions, and includes several connectivity options, including 3G options and NFC capabilities. The countertop solution also supports applications built into electronic payment systems or connected to electronic cash registering systems (ECRs) and POS systems. In addition, it offers a variety of software applications and libraries of certified applications that allow the table and pin systems to interface with major ECR and POS systems.
Verifone has sold many point-of-sale credit card products, including ZON Jr (1984), Tranz 330 and ZON Jr XL (1987), Omni 460 (1991) and Omni 3200 (1999) which is the most successful transaction terminal of their time. The most popular products today include Omni 3700 Family, featuring Omni 3750 and Omni 3740. In 2004, Verifone introduced its newest product line, Vx Solutions (also called VerixV). These include Vx510, Vx520 and Vx570, which are countertop terminals that offer dial-up or Ethernet access, and Vx610 and Vx670 are portable, including batteries, and integrated wireless communication modules. Vx610 is offered in wireless configuration of GPRS, CDMA, and WiFi, and is considered a 'mobile countertop' product. Vx670 is a portable or 'handover' version available with GPRS, WiFi, and as of November 2007, Bluetooth integrated communication module. The Vx670, in particular, is a deterrent to the theft of credit information because customers are not required to relinquish ownership of their credit cards; instead of transacting directly with Vx670 in the sense of 'pay on the table'. The Vx510 is repackaged as Omni 3730, utilizing the massive sale of Omni 3700 series. Omni3730's derivatives are Omni 3750LE, which reduces features, but it's cheaper. The VX Evolution device integrates NFC enterprise software technology to manage multiple NFC-based wallets, apps and mobile programs.
Multimedia Customers Facing
The suite of multimedia devices faced by users of POS devices is designed to enable merchants, especially in multi-line retail environments, to engage in direct customer interaction via customized multimedia content, in-store promotions, digital offerings and other value-added services using POS devices. The solution facing multimedia consumers is offered under its MX solution brand. These products include color graphics displays, interfaces, ECR compatibility, key pads, signature catcher functionality, and other features that serve customers in a multi-channel retail environment. The company's MX solutions also feature a modular hardware architecture that enables merchants to introduce capabilities, such as without contact or NFC. His MX solutions include products that support the same features in the supermarket segment, such as taxis, parking/garage, ticketing machines, vending machines, gas stations, self-checkouts and fast food restaurants.
In 2005 Verifone released its first full-color EFT-POS terminal, the MX 870. The MX 870 is capable of displaying full-screen video and is used to build applications by Verifone customers. MX 870 is the first in the MX 800 series of Visual Payment Terminals, to compete with MX 850, MX 860 and MX 880. All these terminals run Embedded Linux and use FST FancyPants and Opera (browser) for their GUI platform.
Portable
The company's portable payment device consists of a small, portable handheld device that allows merchants to receive electronic payments at customer locations no matter where connectivity is available. Its portable device is designed for restaurants, hotels, shipping, transportation, and other businesses that benefit from paying anywhere, the convenience of paying whenever offered by a portable payment solution that also has the ability to allow merchants to offer coupons, loyalty, and other programs to enrich consumer experience. The company's portable solution supports 3G, GPRS, Bluetooth, and Wi-Fi technology based on VX Evolution and Optimal platform for 'always on' connectivity. Its VX Evolution portable device offers color display, as well as touch screen options. It has leveraged its wireless system expertise to tap into new markets for electronic payment solutions, such as paid-in-table restaurant solutions for restaurants and full service systems for transport and shipping segments where merchants and consumers demand secure payment systems. to reduce fraud and identity theft.
Mobile
The Enterprise PAYware Mobile solution offers mobile payment capabilities for all segments of the mobile POS environment, from large retailers to small traders. Their portfolio of PAYware Mobile solutions including devices connected to, and interfaces with, iOS, Android or Windows-based smartphones and tablets, enable this device to be used as a secure payment device by merchants to receive payments wherever and whenever they do business with cellular connectivity. A variety of PAYware Mobile company solutions are aimed at meeting the needs of traders in different types of retail environments. Its portfolio includes devices that accept different types of payments, including EMV and PIN chips, NFC/contactless and magnetic stripe payment types. The company's device is a compliant PCI and uses a full encrypted card reader so that sensitive cardholder data does not enter the device. The company provides options designed to enrich the overall consumer experience, including an integrated PIN pad for faster transaction processing, integrated laser barcode imaging, and functions that facilitate sales services, such as 'on the spot' verification of merchandise availability or price.
Petroleum
The company family of products for petroleum companies consists of an integrated electronic payment system that combines electronic payment processing, fuel expenditure and ECR functions, as well as secure payment systems integrated with major oil pump controllers. These products are designed to meet the operating needs of petroleum companies. These products allow the company's oil customers to manage fuel expenditures and controls, and enable 'pay at pump' functions, cashiers, store management, inventory management, and accounting for goods and services in POS. The Company has expanded this product range with various Secure PumpPAY payment tools and related software integrated into the oil dispenser and provides secure payment capabilities. It has also introduced its PAYMedia service that uses a large color screen from Secure PumpPAY units and its VNET media platform to enable digital content, including paid advertisements and coupons on the petroleum front page. The media platform delivers short-form video and digital coupons at eye-level display to drive customers, thus engaging consumers and influencing their purchasing decisions.
Unemptured and Self-Service
The company's non-maintenance and self-service payment solutions are designed to enable payment transactions within self-service environments and include their UX, TransitPAY, and MX solutions. His UX solutions include a series of secure payment modules for vending machines and self-service, high volume volume environments, such as on-street parking meters, oil pumps and ticketing machines. The UX module is offered as an OEM solution that can be customized and integrated with existing self-service environments, and is designed for indoor and outdoor use in harsh environments. This solution includes a version to receive various payment options, including mobile wallet, magnetic stripe, EMV chipcard or NFC or other contactless payment schemes. TransitPAY is a unattended payment solution that enables the application of an open tariff collection system for motorists to pay by waves or beats from almost any NFC-enabled contact card or phone, with connectivity to control the gate gate if applicable. TransitPAY is designed for public transport environments, including buses, trains, and subways. The company's MX 760 is an all-in-one OEM module with graphical display and audio features integrated into a variety of unattended environments. MX 760 receives magnetic track card and EMV chip using hybrid card reader and encrypted pin pad and supports various value-added services.
Contactless Peripherals
Peripherals without corporate contacts enable the upgrading of existing payment systems to accept unauthorized payments. These contactless modules, including the QX 1000 and QX 700, support a variety of unattended payment schemes. QX 1000 is a no-contact counter module that allows merchants to upgrade existing payment systems to allow for the acceptance of non-contact payments without having to replace the existing POS terminals. QX 1000 companies are designed to provide 'Plug and Play' integration with other electronic payment devices and are designed to be implemented in retail locations, including fast food restaurants, retail stores, parking garages, cinemas and sports arenas. Applications supported on the QX 1000 include EMV and Visa payWave MSD and MasterCard PayPass, American Express ExpressPay, Discover Network Zip, and MIFARE. QX 700 is a contactless module designed to enable non-tariff payment for vending machines and self-service, high volume volume transactions, such as on-street parking meters, oil pumps and ticket engines. QX 700 can be integrated into unattended indoor and outdoor systems through field upgrades, and capable of supporting various types of cards, including public transport, stored values, and other value-added applications.
Network Access Solutions
The company's network access solutions are designed and customized to support the requirements of the electronic payment industry by providing the networking hardware technology and communications infrastructure necessary to achieve connectivity within the POS environment. An integrated enterprise network is designed to protect investment in legacy networks today and work on a variety of standard networking technologies and protocols. Intelligent Network Access Control (IntelliNAC) is a smart networking device that provides a variety of digital and analog interfaces, data lines and concentrations, protocol conversions, and transaction routing. IntelliNAC is offered with IntelliView, a corporate-level solution that provides the necessary network tools for managing POS solutions, such as remote downloads, and centralizing network management for reporting and monitoring.
Services
Corporate service offerings include their payments as service solutions and other managed service solutions, terminal management solutions, payment-supported media, and payment system security solutions. It also offers a number of support services, including software development, installation and deployment, warranty, post-sale support, repairs, and training.
Payment-as-a-Service - The payment management solution of a corporate payment-as-a-service system is hosted and managed by the company and is offered as a subscription-based model that includes hardware and software, as well as security, payments and value-added services for fixed rate per device. This solution supports processing of payment types across all merchant business channels, including credit and debit card payments, online payments, mobile platforms, loyalty cards, gift cards and membership cards, with integrated payments and reporting management. Hosted services include 24x7 support, encrypted transactions, integration for new payment methods, ongoing EMV maintenance, merchant support, and PCI compliance. Service-as-service-service portals serve as a single entry point for merchants and partners to access, configure and manage their payment services, and to deploy loyalty programs and enable new payment types. The company's payment-as-service solution is designed to simplify the adoption of EMV and enable rapid integration of mobile wallets and emerging payment technologies. The payment-as-service model is implemented mainly in Europe, Middle East, and Africa (EMEA), as well as in Asia, Australia, New Zealand, and other Asia Pacific Rim countries.
Managed Services - In addition to corporate payment-as-service solutions, it offers a range of other managed services to provide its customers with managed solutions that accommodate their business needs and plans. The company's managed services include web-based transaction processing consolidated across all payment types, from traditional retail to e-commerce, a cloud-based remote device from devices supported with the latest base files and firmware, software and applications, and estate management, including remote key loading, the ability to enable NFC/contactless and EMV remotely, and consolidated reporting and analysis. PAYware Connect, the company's cloud-based hosted payment solution, combines all payment transactions through its payment gateway and allows merchants to process from any PC connected to the Internet through a single portal. PAYware Connect uses the company's VeriShield Total Protect for transaction encryption and tokenisasi and is certified by all major payment processing networks. The Direct Managed VX solution combines its VX devices with the latest payment applications, automatic updates, security protection with VeriShield Total Protect, and estate management capabilities through VeriFone HQ or VeriCentre. This managed solution is offered worldwide to retailers, acquirers and merchants in the restaurant and hotel markets. The company's limousine, livery, and taxi management solutions provide tools for fleets mounted with its POS devices, including real-time and travel/tariff monitoring, computerized delivery, vehicle tracking and faster card processing.
In 2009, Verifone partnered with Hypercom and Ingenico to establish the Safe POS Vendor Alliance, a nonprofit organization whose goal is to raise awareness and improve the security of the payment industry.
In 2010, Verifone announced its VX Evolution product line, designed for the PCI PED 2.0 specification and providing native support for VeriShield Total Protect, Verifone's encryption and tokenisation solution. The VX Evolution line is an extension of Countertop products and Verifone PIN pad and includes a number of upgrades from previous models, such as full color display, ARM 11 processor and fully programmable PIN pad.
Main Trends and Styles
Trending Summary
Industrial growth continues to be driven by a long-term shift towards electronic payment transactions and away from cash and checks, in addition to increasing security standards that require more sophisticated electronic payment systems. International and national security issues have been a key driver of Verifone's business model as customers seek ways to meet the increasing government requirements associated with identity theft prevention as well as security of operating regulations issued by credit and debit card associations. This trend has been accelerated by the use of credit-based and debit card payments, especially PIN-based debit. Another major driver is the growth of single application credit card products that allow merchants to provide payment solutions in non-traditional settings such as pay at desks in restaurants.
Exposure and Penetration of Electronic Fast Payment in Emerging Markets
Rapid economic growth and subsequent infrastructure development - expanding the presence of IP and wireless communications networks in Eastern Europe, Latin America and East Asia have led to a significant increase in demand for Verifone's electronic payment products. Verifone is strategically gaining exposure to this growing market and the 2008 revenue decline is a good indication for this. Specifically, during the fiscal year ending October 31, 2008, 65.2% of Verifone's net revenue was generated outside the United States. Verifone expects the percentage of net revenue generated outside the United States to continue increasing in the coming years.
The company's Solutions segment's net revenue increased by $ 15.2 million, or 1.9% during the fiscal year ending October 31, 2008 compared to the fiscal year ending October 31, 2007 primarily due to an increase of $ 55.3 million in net revenue of the Solution International System. This increase was offset by a drop in North American system solutions solutions of $ 41.2 million. The increase in net revenue of the International Systems Solutions is largely due to growth in the Latin American market, especially Brazil as some of Brazil's largest Verifone customers make generous bidding to buy electronic payment products, as well as higher demand for prepaid top-ups, medical and health. Further, European net income for System Solutions increased by $ 19.4 million due to increased supply chains and sales execution in Russia and Ukraine. The decrease in net revenues of North American System Solutions was mainly due to weak demand for the company's "Oil Solutions" and a fall in demand from US financial businesses.
Verifone's revenue increase from abroad has not yet increased its profit margins. In contrast, the percentage of international gross profit declined due to a combination of increasing price competition in emerging market countries, including Russia, China, Turkey and Brazil. In addition, certain customers purchase unsuitable inventory with PCI at significant discounts. In addition, revenues in Latin America, which historically had gross margins below the international average, increased proportionally in the fiscal year ending October 31, 2008 because the international sale of Verifone System Solutions products tended to bring lower average selling prices and hence having a lower gross margin than its sales in North America.
Increase IP Connectivity
Large telecom operators have expanded their communications networks and lowered costs, enabling traders to use IP networks more cost-effectively. This increase in IP connectivity has led to faster processing speeds and lower costs, which in turn has opened up new markets for electronic payment systems, including many that have become cash-specialty industries, such as fast-food restaurants ("QSR"). Additional wireless electronic payment solutions are being developed to improve transaction processing and mobility speed at point of sale, and offer significant security benefits that enable consumers to release their payment cards. For example, portable devices can be presented to consumers to pay at desks in full-service restaurants or pay in other environments, such as outdoor arenas, pizza delivery, farmers markets, and taxis. Increased IP connectivity in several fast-growing developing countries, particularly Brazil, Turkey, China, Brazil and Israel has driven much of the $ 56.3 million increase in net revenues of Verifone's International System Solutions for 2008. However, the pervasive global bear market in 2009 has negated the positive impact on Verifone's revenue from Increased IP connectivity across all market sectors, as well as domestic and international markets.
Wireless Communication Growth
The development and enhancement of the use of wireless communications infrastructure increases the demand for compact, easy-to-use, and reliable wireless payment solutions. The wireless communications industry has grown rapidly in the United States and globally over the last twenty years. Increasing the speed of wireless communication, and the ever-expanding coverage of maps of standard wireless data technologies such as General Packet Radio Service ("GPRS"), and the division of Double Access Division ("CDMA") make wireless telecommunications an attractive alternative to traditional telecommunications. The $ 61.5 million increase in revenue from North American Systems Solutions products is primarily due to increased demand for Wireless products due to customers' interest in differentiating their services to merchants, and higher sales in Canada, where merchants are preparing for a transition to technology a new payment card offered by Interac.
Increased focus on Security Issues
Industry security standards are evolving, encouraging the re-certification and replacement of electronic payment systems, particularly in Europe and the United States. To offer electronic payment systems connected to payment networks, electronic payment system providers declare their products and services with card associations, financial institutions and payment processors and comply with government regulations and telecommunications companies. Not surprisingly, security has been a driving factor in its business as customers seek to meet the increasing government requirements related to identity theft prevention as well as security of operating regulations issued by credit and debit card associations, whose members include Visa, MasterCard, American Express, Discover Financial Services, and JCB. In response to increased industry demand for high security products in the fiscal year ending October 31, 2007, Verifone spent $ 16.6 million worth of obsolescence mainly due to the adoption of new PCI security standards.
Competition
Verifone is one of the top three service providers and electronic payment systems in the world. The market for this company's products is very competitive, and has been experiencing price pressures. In the past two years, competition from producers, distributors, and providers of similar products has led to price reductions, reduced margins, and loss of market share. For example, one of Verifone's old customers - First Data Corporation has developed its own set of electronic payment systems for the US market. In addition, Verifone competes with cash register suppliers that provide electronic payment capabilities and software manufacturers that support electronic payments via the internet, as well as manufacturers or distributors of other electronic payment systems. Finally, Verifone competes with small companies that have been able to develop a strong local or regional customer base. The main competitors of the company are:
- PAX Technology
- Ingenico
- NCR Corporation
Verifone acquired smaller competitor Hypercom in full share transaction transactions in 2011.
Acquisitions
Company affairs
The company is run by a board of directors consisting mostly of outsiders, as is commonplace for public companies. The members of the board of directors in June 2014 are: Robert W. Alspaugh ( Director ), Karen Austin ( Director ), Paul Galant ( Director, Chief Executive Officer ), Alex W. (Pete) Hart ( Chairman of the Board of Directors ), Robert B. Henske ( Director ), Wenda Harris Millard ( Director ), Eitan Raff ( Director ), Jonathan I. Schwart ( Director ), Jane J. Thompson ( Director ).
Under the Corporate Governance Guidelines, the Board is free to choose the Chairman and CEO of the company in a manner that it considers to be in their best interest at a given point in time. Since 2008 the position of Chairman of the Board and CEO has been held by separate people. The Board believes that this structure is appropriate for them because it allows the CEO to focus his time and energy in leading the core business and strategic initiatives while the Board focuses on management oversight, overall corporate risk management and corporate governance. The councils and committees meet throughout the year with a set schedule, usually at least once a quarter, and also hold special meetings from time to time. The agenda and topics for Council meetings and committees are developed through discussions between management and members of the Council and its committees. Information and data that are important for the issues to be considered are distributed prior to each meeting. Board meetings and background materials focus on strategic, operational, financial, corporate, governance and compliance issues.
Board Roles in Risk Oversight
The Board carries out risk management responsibilities directly and through its committees. As stated in the annual charter and work plan, the Audit Committee has the primary responsibility for overseeing their company's risk management process. The Audit Committee receives updates and addresses individual and overall risk areas during the meeting, including financial risk assessment, operational risk management policies, major financial risk exposure, compliance-related exposure to legal and regulatory requirements, and management actions to monitor and control such exposure.. The Vice President of Internal Audit reviews the annual operating risk audit results of the Company's Audit Committee and at least once every quarter of the internal audit results, including the adequacy of internal control over financial reporting. The Vice President of Internal Audit and Chief Information Officer reports to the Audit Committee on the control and security of information systems.
Throughout each fiscal year, the Audit Committee invites the appropriate management members to their meetings to provide company-level reports relevant to the Audit Committee's oversight role, including the adequacy and effectiveness of management reporting and control systems used to monitor compliance with approved policies and guidelines, and security of systems and data, treasury, structure and insurance coverage, tax planning and planning, worldwide disaster recovery planning and overall effectiveness of enterprise risk management policies. The Audit Committee is generally scheduled to meet at least a quarter, and generally includes one or more areas relevant to the role of risk control in at least one of these meetings.
The Compensation Committee oversees the risks associated with company compensation policies and practices with respect to executive compensation and executive recruitment and retention, as well as general compensation. In establishing and reviewing the executive compensation program, the Compensation Committee consults with independent compensation experts and seeks to develop programs to avoid encouraging unnecessary or excessive risk taking. The company's compensation plan uses a mix of basic salaries and short- and long-term incentive rewards designed to harmonize executive compensation successfully, especially with regard to financial performance and shareholder value. The Compensation Committee sets the salary amount of the company's executive base at the beginning of each fiscal year. Most of the bonus amount is related to the company's overall performance and shareholder value. The compensation provided to the executive officer also includes a substantial portion of long-term equity awards that helps to align the interests of the executive with the interests of its shareholders over the long term.
The Corporate Governance and Nomination Committee oversees the risks associated with overall corporate governance, including the development of corporate governance principles applicable to companies, the evaluation of federal securities laws and regulations with respect to insider trading policies, the development of standards to be applied in making decisions in the absence of a material relationship between the company and the director and periodic regular evaluations of the Board and management.
Adoption of Majority Voting Terms
In considering the best practices of corporate governance among peer companies and governance practices recommended by shareholder advisory organizations and supported by the company's shareholders, the company changes the Bylaws and Corporate Governance Guidelines in fiscal year 2013 to adopt the provisions of the majority vote to be effective immediately after the closing of 2013 Annual Meeting of Shareholders. The provision states that, in the unchallenged election of directors, each director shall be elected by a majority of votes cast (which means the number of shares voting for a nominee shall exceed the number of shares voting against the nominees), and in the elections contested, each director must be selected by a select number of votes.
The contested election is defined as the election for which the Company's Corporate Secretary determines that the number of candidates for the director exceeds the number of directors to be elected on the date that is ten days prior to the date of the first notification of the meeting for the meeting to shareholders. Under the amended Code of Corporate Governance, any candidate in an undisputed election who receives a "fighting" vote greater than "for" will immediately file his resignation after following the certification of the vote. 12 The Corporate Governance and Nomination Committee shall consider the offer of resignation and shall recommend to the Council the measures to be taken. In considering whether to recommend accepting or rejecting the proposed resignation, the Corporate Governance and Nomination Committee shall consider all factors deemed to be relevant including, but not limited to, any reason stated by the shareholders to "withhold" their votes for the selection of directors , length of service and qualification of directors, Corporate Governance Guidelines, and overall contribution of directors as Board members. The Board will consider these and other relevant factors, as well as recommendations of the Corporate Governance and Nomination Committee, when deciding whether to accept or reject the submitted submission. Any director whose resignation is being considered will not participate in the consideration and recommendation of the Corporate Governance and Nomination Committee on whether to accept resignation or not. The Council will take action within 90 days after the certification of the vote, unless a longer period of time is required to comply with any applicable NYSE or SEC rules or regulations, where the Council's event will take action as soon as possible while meeting the requirements.
See also
References
External links
- Official Verifone Sites
Source of the article : Wikipedia
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