VeriFone CEO on Mobile Payments and Google Wallet Partnership

Strategic Insights -

VeriFone Systems CEO Doug Bergeron participated in an exclusive interview with Bloomberg TV on May 26, 2011, discussing the company's recent partnership with Google and the future of mobile payments. Bergeron highlighted VeriFone's expertise in processing credit card transactions and its goal of facilitating a seamless mobile payment experience for consumers and retailers.

Key Takeaways:

  • VeriFone Systems, the world's largest merchant payment processor, has partnered with Google to bring mobile payments to major retailers through the Google Wallet application.
  • The Google Wallet trial is currently underway at companies like Bloomingdale's and Macy's, with VeriFone Systems providing the necessary software and systems to enable mobile payments.
  • Bergeron estimates that 70% of merchants already have the technology to accept mobile payments, but it hasn't taken off yet due to a "chicken and egg" problem, with retailers hesitant to invest in new technology until more consumers have compatible phones.
  • Bergeron believes that a combination of VeriFone Systems and Google's efforts will help drive mobile payment adoption, with Isis, the AT&T Verizon joint venture, also set to make significant announcements in the coming months.
  • Bergeron sheds light on the potential for phone companies to act as credit and debit providers in the future, enabling a more streamlined payment experience.
  • Security and privacy concerns are acknowledged as major issues in the mobile payments space, but Bergeron asserts that VeriFone Systems' 30 years of experience in securing credit card transactions will help ensure a secure mobile payment environment.
  • The company's acquisition of Hypercom is being blocked by the Department of Justice, but Bergeron is working with them to find a suitable divestiture solution.
  • The Hypercom acquisition is seen as a crucial step in expanding VeriFone Systems' market share in Western Europe, where the company is currently weak.

Statistics:

  • 70% of merchants already have the technology to accept mobile payments (Source: VeriFone Systems CEO Doug Bergeron)
  • 40% of VeriFone Systems' business is in emerging markets, where economies are growing at 10% and the adoption of electronic forms of payment is growing faster (Source: VeriFone Systems CEO Doug Bergeron)
  • VeriFone Systems has achieved plus-20% growth rates over the last several quarters, driven by the adoption of plastic payments replacing cash (Source: VeriFone Systems CEO Doug Bergeron)

Sources:

  • Bloomberg TV interview with Doug Bergeron, CEO of VeriFone Systems (May 26, 2011)
  • "Bloomberg News" broadcast (May 26, 2011)
  • CQ-Roll Call, Inc.