Over the last couple of years, VeriFone has accelerated its expansion into new markets and broadened its capabilities, especially into services.
Buying up Gemalto’s modest European terminal business expands VeriFone’s market while letting Gemalto focus on its card and IC business.
Gemalto is a leader in EMV card technology so, given the likely EMV evolution in the US, a partnership between these market leaders makes sense.
Only last month VeriFone sought to expand its footprint in Europe through a £337 million hostile bid for another rival card terminal outfit, Hypercom. The move was vigorously rejected by Hypercom.
VeriFone and Gemalto have also agreed to team on new chip card offerings based on the global EMV payment standard. They argue that this comes as US retailers and card networks increasingly acknowledge chip card and contactless technologies as a core component of security infrastructure.
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