Posts Tagged Business Right

VeriFone turns payment disruption into a services business

Posted by on Wednesday, 16 November, 2011

Right after announcing VeriFone’s 2 million Monday purchase of Point, a European-based point-of-sale, gateway and payment services provider, VeriFone CEO Douglas Bergeron got calls of congratulation from PayPal President Scott Thompson and top Google Wallet  officials. These two companies have been feuding and there’s no love lost between them. But they found common ground in congratulating VeriFone, because the company’s evolution is very much tied to their efforts in disrupting the in-store payment experience.

As Google and Isis, the carrier-led joint venture, bring forward new NFC-based payment systems and PayPal builds its own in-store solution for payments that leans on other methods besides contactless, they’re increasingly looking to VeriFone to make sense of it all for merchants, which are confused about how to handle this transition to alternative payments. The thinking by VeriFone, Google, PayPal and others is that VeriFone can help lead merchants and retailers through this transition by becoming a managed services provider, not just a payment system seller, VeriFone CEO Doug Bergeron told me in an interview.

By helping integrate these new payments models into the existing systems of merchants, VeriFone can be an independent third party, a “Switzerland,” said Bergeron. He said VeriFone can make all the alternative payment systems and their new discounts and loyalty features work through point-of-sale hardware merchants are familiar with.

“We’re realizing our customers need more than just our products; payments is [sic] getting too complex for them and they need ongoing service. They need someone to manage not only credit card acceptance and security but all the new stuff that will co-exist like Google Wallet, Isis, and PayPal and Groupon. Retailers want the ability to keep current with all this stuff  but they can’t hire an IT team.”

VeriFone CEO Douglas Bergeron

That’s where the purchase of Point comes in. Point — which offers point-of-sale technology and support, payments gateway services, card encryption services, and multi-channel e-commerce processing – has the biggest footprint in Europe with 475,000 merchant contracts, which will no doubt extend VeriFone’s existing business. But really critical in the pick-up are Point’s services business and technology.

Point doesn’t just sell terminals; it provides merchants with ongoing security, compliance and technological capabilities, as well as other mission critical service. That fuels a recurring services model that will add about 0 million in sales over the next 12 months to VeriFone. VeriFone plans to use Point’s technology and business model in other markets where payment systems are mature to help retailers make the transition to alternative payments.

VeriFone said with the addition of Point, its services revenue will grow from 20 percent this year to 30 percent in fiscal year 2012 and will hit 50 percent of revenues by 2015. By that time, services will represent a .5 billion business, including rentals. If all goes according to plan, the company will become a services provider, delivering remote support and help in connecting these new payments solutions with a retail business’ system and ultimately with their banks.

This strategy isn’t without risks. Standard & Poor’s lowered its outlook on VeriFone Tuesday based on the debt it was taking on for the Point deal and the integration risks. And it’s unclear if VeriFone is being too optimistic in its belief that merchants will turn to it for managed services. But this is where VeriFone is ultimately going as it tries to become a full-blown resource for merchants and retailers. That’s the motivation that went into its recent purchase of Global Bay, which helps retail employees connect with consumers on the sales floor through mobile devices and provides software that ties into inventory systems and online commerce sites. Bergeron said merchants are increasingly going multi-channel, blending online and offline commerce, and they need more help in doing that.

It shouldn’t be a surprise that VeriFone is poised to capitalize on payments. It has been around for years and has a huge footprint in the U.S. with its point-of-sale terminals. But it’s making some bold decisions to grow beyond the point of sale, getting on to the sales floor with mobile devices like its PAYware card swipe tool and with Global Bay’s software and creating a services business that can provide a lot more recurring revenue. It’s hard to say which digital wallet and alternative payment system will win out. And VeriFone doesn’t connect to other mobile-based solutions like rival Square. But with its latest moves, it seems VeriFone will do quite well as the payment landscape goes through a lot of upheaval in the coming years.

Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.

  • Connected world: the consumer technology revolution
  • NFC will be driven by marketing and loyalty, not payments
  • Forecast: the future of near field communication



alt=''
border='0'
/>


GigaOM


Steps to Follow When Selecting IT Support

Posted by on Monday, 15 June, 2009

Steps to Follow When Selecting IT Support

IT support that addresses your specialized needs is vital to the success of your company. Technology has become an important component to running any efficient Australian business. But then, getting the correct system is just the start. You should ensure that you also hire a company committed to maintaining the efficient use of your machines. As you read on, you will learn how to find an IT company that will assist you in the selection of your IT system. You will also be able to contact one of the best firms offering IT support at the end of this article.

Expert resources on IT support are located on that site.

Is Systems Training Included? However, establishing IT solutions is not the only thing you need to do to run a well-oiled business. Right after the installation of the new systems, staff should be made aware of how to use them to take advantage of this new add-on to the company. Before signing on the bottom line, check the company’s training policy. Find out too if the firm can give you a mentor who can train your people on the execution and maintenance of the new technology. Most of the time, this is more efficient than getting another team to train your staff.

How Scalable are the Systems Provided? Further, can your managed IT services advance at the same rate as your business? What this means is that you should select an IT firm that’s willing and capable of providing services that matches your needs. Ensure that the IT support the firm provides is capable of adjusting to your ever-changing business ways. To this end, certain companies will proffer recurring system reviews to determine if the installed technology is still good enough for your requirements.

Managing Maintenance 101. Regular systems maintenance is vital to guaranteeing the smooth operations of your business. A company with a credible background is surely going to offer ongoing maintenance for your new system. This may mean regular visits from a consultant to monitor your needs and system or a maintenance checklist that will help you to make sure your systems continue to run at peak efficiency. Find out the maintenance details incorporated in the IT package you want to get.

When you would like to get more information on IT support Sydney check out this site.

How are Customer Support Levels? Even the best kind of technology systems will have some loopholes, so it is necessary to have IT support that is ready to solve possible problems as they crop. Ask the prospective IT consulting about response times and whether you will get their response times guaranteed in writing. Be sure you work with a company with help desks that will not only listen but will facilitate solutions to your problems. You want a company that provides great support as this helps to lower downtimes. A great IT help desk is one factor that will help you to run operations smoothly.

The right remote IT support will make all the difference in maintaining a well run, efficient company. By asking the right questions up front, you can make a good choice in a firm that will meet your unique needs. Just by using the tips above to your maximum advantage, you will be able to tie up with a firm that can solve your problems now and in the future as your needs change.