VeriFone Rises as MasterCard Speeds Payment-System Upgrades
VeriFone Systems Inc. (PAY), the largest maker of credit-card terminals, rose the most since November after MasterCard Inc. (MA) said it’s seeking to accelerate upgrades to merchants’ electronic point-of-sale payment systems.
VeriFone jumped 8.4 percent to $42.70 at the close of New York trading. Shares of the San Jose, California-based company fell 1.5 percent in the 52 weeks through yesterday.
MasterCard said yesterday it has a “comprehensive road map” for shifting U.S. electronic payments away from systems that rely on the magnetic stripes on the back of credit and debit cards to so-called EMV technology, cards embedded with microchips. VeriFone “stands to benefit the most” as merchants would have to upgrade five million of the company’s terminals to meet MasterCard’s new requirements, Tien-tsin Huang, an analyst at JPMorgan Chase & Co. in New York, said in a note to clients.
“This announcement is clearly a positive for the POS terminal manufacturers, as it gives merchants another reason to upgrade their terminals,” Huang said.
Ingenico SA (ING), a Neuilly-sur-Seine, France-based point-of- sale equipment maker, rose 3.8 percent in Paris trading.
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