Verifone Sales Seen Stoked by Apple’s Mobile PaymentsOlga Kharif
VeriFone Systems Inc. rose to the highest price since June after Apple Inc. said its new iPhone will feature mobile payments, helping drive demand for VeriFone’s in-store technology.
Apple Pay, unveiled yesterday as part of the iPhone 6, will feature a chip enabling a payment technology called near-field communication, or NFC, that allows people to pay with a tap of their smartphones. VeriFone is one of the largest makers of in-store registers that enable retailers to accept payments through NFC technology.
The introduction of the capability on Apple’s iPhones will help drive adoption of the technology across phones and stores, which may boost VeriFone’s terminals sales, said Gil Luria, an analyst at Wedbush Securities Inc. Less than 15 percent to 20 percent of U.S. payment terminals are currently equipped with NFC, and Apple’s push will give merchants a reason to upgrade, Tien-Tsin Huang, an analyst at JPMorgan Chase & Co., wrote in a note today.
“The fact that Apple is promoting NFC as the technology for mobile payments is a big positive for VeriFone, not to mention Apple will be putting VeriFone terminals in their own stores,” Luria said in an e-mail.
VeriFone shares gained 4.9 percent to $36.72 at 11:57 a.m. in New York. The stock earlier rose as much as 6.3 percent to $37.23, the highest intraday price since June 23.
San Jose, California-based VeriFone typically sells terminals that contain NFC as well as another new technology called EMV, short for Europay-MasterCard-Visa. EMV is designed to make debit- and credit-card payments more secure. Retailers adding EMV and NFC technologies may boost VeriFone’s revenue by as much as $50 million to $100 million in the next two to three years, according to Luria.
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