Accelerating change in payments has taught all of us at Verifone one thing, and taught us well – we need to innovate differently to not only survive but stay firmly relevant to our clients and partners that span the globe.
Our transformation is deeply rooted in our “client-first” philosophy and this view has galvanized us as an organization to evolve.
Today’s merchants are showing increased interest in the revenue opportunities payment devices can bring with all the new ways of interacting with consumers. With innovative software applications that enable a broad range of capabilities using the device as a conduit, we are looking at a world where Jane the consumer can purchase a pair of shoes online, then when she discovers they don’t fit; Jane can drive to the nearest store and exchange them for a size that does fit. When Jane pays with her iPhone or Android at the counter, an offer is displayed on the payment device for a 20% discount on a dress to go with the shoes. Jane accepts the offer and the discount is automatically applied when she makes her purchase in the clothing department.
With this future in mind, Verifone began transforming in 2013 with Paul Galant at the helm. We set off to strategically invest in building simple, commerce-enabled solutions that are secure, open, connected and offer value at the POS. My engineering organization has been hard at work to consolidate our approach and achieve a world-class ecosystem capable of supporting ingenuity and innovation that is shaping the future of payments and commerce.
No doubt, we did and still do face tough challenges but we have a strong history and track record of success. After all, Verifone was there when “payments” as a definable industry was created in the early 80’s. From the introduction of the first payment card, the Diner’s Club, in 1950, it took nearly six decades for plastics to overcome cash and check use. The move from plastics to digital for the consumer, and from multi-channel to omni-channel for the merchant is happening in just a fraction of the time it took to go from paper to plastic.
To manage change as effectively as possible, Verifone is using a new framework to guide how we approach, develop and bring to market solutions and services.
In this new framework, we are building complete end-to-end, connected solutions. The vision we are actively realizing is for our devices (end-points) to be securely connected to services (access points) in the Verifone cloud to enable omni-channel, cross-border functionality, to ultimately creating new forms of commerce. Based on these principles, one of the first things we built is our Secure Commerce Architecture which provides payments and commerce applications with security, scale and a streamlined integration model. Since its global availability beginning 2015, large merchants, acquirers and independent software vendors have benefited from two key actions: we removed the POS system from the scope of EMV certification to greatly reduce the burden for clients, and we prevented consumer payment data from entering the POS to eliminate the potential for this data to be stolen at scale.
Our principles have guided the development and recent availability of Verifone’s e355 mobile POS. Think of the ultimate in flexibility, longevity and core design to work with any smart phone or tablet and any enterprise operating system, and you have these compact, durable, EMV-ready devices that are enabling retailers to make long-term investments in mPOS, at a much lower cost of ownership. In sum, the total value of this framework is measured in terms of the combined lifetime value of the end-points in the ecosystem. This value is shared with our clients, partners and suppliers.
The more connected end-points, the higher the lifetime value. This is the network effect, inherent in the evolution of the Verifone payment ecosystem.
We are demonstrating this value with Westpac Group, one of the largest financial services institutions in Australia and New Zealand with more than 13 million customers. Verifone is working directly with Westpac merchant clients to deploy our next generation portable payment device and fully managing their payment systems.
The Verifone payment ecosystem is where open standards will be used for global collaboration; where we are standardizing for consistent build environments; where hardware and software architecture and development tools will enable more efficient innovation and integration; where Secure Commerce Architecture will provide scale and integration; where new partnerships with companies like Apple, Google, and Visa will drive innovation; and where we have the world’s best payment technologists and innovators.This is the new Verifone where I work every day. Get to know us. It took many years for us to get here, so indeed, we’re worth knowing. We are much more than a hardware company. We are an innovative software company too, one that’s driving the future of payments and commerce.
Our newest family of products, Verifone Engage, is the lynchpin of our payment ecosystem and we look forward to showing off the full scope of what we’ve built over the last two years! Stay tuned!