Broadband Payment Processing Via Ethernet or Wireless Provides Merchants with Speed, Security, Mobility and New Revenue Opportunities Exclusive Verifone Comm Server™ Technology
Santa Clara, CA - September 28, 2004 - Verifone, Inc., the world's leading provider of payment solutions, today unveiled its Enhanced Communications point-of-sale product strategy and launched a broad marketing campaign to educate the industry on the benefits of adopting wireless or Internet-based credit and debit card transaction processing.
Key elements of today's announcement include:
- Immediate availability of a broad array of high-speed communication modules for the industry leading Omni 3750 platform, which span the entire spectrum of available enhanced communication technologies, including CDMA, GPRS, Wi-Fi, and Ethernet, to support DSL, cable, ISDN, cellular and satellite broadband communication networks.
- The Verifone Comm Server™, a software component included in all Enhanced Communication products to provide an interface between an application and the various Enhanced Communication modules. Verifone Comm Server™ makes the connectivity method transparent to the terminal application and eases the certification process.
The Wait is Over!
"Verifone's message to the marketplace is: 'The Wait is Over' at the point-of-sale," said Douglas G. Bergeron, Chairman and CEO of Verifone. "Enhanced Communications solutions from Verifone deliver fast and secure payment processing that can greatly improve speed of service and profitability."
Verifone designed a modular architecture for the Omni 3750 and related Omni 3740 products to ensure that customers were buying "future-proof" solutions. The terminals can quickly and easily be upgraded as merchant needs change, without having to buy completely new equipment. All modules feature dial capability for back-up connectivity, dual use capabilities or to enable merchants to utilize traditional landline telephone connectivity today and migrate to IP when they are ready.
IP Spurs QSR Card Acceptance
IP-based payment technology is widely credited with spurring the rapid adoption of credit and debit card acceptance by the Quick Serve Restaurant (QSR) industry in North America. “With our wide area network, we have eliminated the monthly cost of one dial line in each store in addition to receiving a reduction in merchant processing fees on every card-based transaction,” said Tim Collins, IT director of the Taco Bueno chain.
In 2004, eight of the top 10 QSR chains have initiated wide-scale card acceptance based on Verifone solutions, including Burger King. “Through the combination of the Enhanced Communications capabilities that Verifone is delivering and specialized programs like the MasterCard Quick Payment Service program, together, we can put the 'quick' in quick serve restaurants," said Fred P. Gore, senior vice president, North America Acceptance, MasterCard International.
Verifone's modular Omni 3750 architecture ensures that merchants can take advantage of the broadband option that makes the most sense for them. "Flexibility and ease of use are primary drivers in our product design," said Verifone's Bergeron. "Verifone is demystifying connectivity so that selection and use will be an easy choice for any merchant."
Terminals using the Ethernet option can be connected to DSL (digital subscriber line), cable modem, frame relay or VSAT (very small aperture terminal) satellite connections. DSL, which operates on standard telephone lines, is an increasingly popular broadband option, especially among small business users who already account for as much as 20% of all DSL users in the U.S. market, according to industry analysts. Cable modem connectivity is highly suited to sports bars and other entertainment venues that are already utilizing cable television service.
Merchants who already have cable or DSL connectivity can easily convert to IP-enabled payment transactions with Verifone Enhanced Communications solutions and, in the process, eliminate the cost of standalone dial lines, which on average cost more than $60 in the U.S. and even more in international venues. Additionally, merchants using multiple terminals can easily connect them to a single broadband drop utilizing local area network (LAN) or Wi-Fi.
IP technology provides added security that’s not available with typical dial connections. Verifone supplements this with end-to-end SSL security, providing encryption that further protects the integrity of financial data.
Wi-Fi represents an extremely cost-effective means of extending POS capabilities without having to install multiple landlines or hardwiring Ethernet LANs. “We decided Wi-Fi was the best way to quickly and economically provide retailers with the speed, security, and flexibility they needed at the POS today, and to position ourselves to handle future technology changes," said Bolívar Maquilón, General Manager at Medianet Ecuador, the largest provider of POS networks and payment processing services in Ecuador. The company is providing payment processing services to retailers in 20 major commercial malls using Omni 3750s with Wi-Fi connectivity.
Digital Cellular Alternatives
Advanced digital cellular technology presents a relatively new option for merchants who are either unable obtain DSL or cable service, or who want an even more flexible alternative that requires no fixed connections. CDMA2000 and GPRS are two wireless carrier Internet technologies that extend a merchant's POS service area.
Ideal for sidewalk sales and other venues requiring transportability, wireless carrier Internet provides "always on" connectivity without the need for traditional phone lines. Wireless subscription of data plans for POS transactions are being priced on the amount of data used, rather than on actual connect time that traditional landline plans impose.
Verifone Comm Server™
Verifone today also unveiled the Verifone Comm Server™, which provides a dramatic advancement in enabling POS applications for Enhanced Communications. Verifone Comm Server™ is a common software component that resides in each terminal to make POS application processing hardware independent. Verifone Comm Server™ leverages one application version across all enhanced communication types and virtually eliminates adverse impacts of modifications to future communication technology.
POS applications developed for Verifone Comm Server™ will no longer require changes to achieve separate payment processor certifications for separate connectivity configurations; for example, an application developed for the Omni 3750 Wi-Fi version will run on the Omni 3750 CDMA version in a manner transparent to the processor and terminal hardware.
"This is the glue that binds transactions to IP networks and the Internet in a seamless manner," said Paul Rasori, VP, North America Marketing. "Suddenly, banks, processors and developers can build their IP network processing infrastructure without concern for the actual communication methods used by the merchant. This is revolutionary in the POS industry, where traditionally processors have been required to maintain multiple access methods for dial, DSL, Wireless and VPN networks due to technical limitations of the POS terminals. This is no longer the case when they select a Verifone Enhanced Communication solution.”
About Verifone, Inc.
Verifone, Inc., recognized worldwide as the trusted leader in secure electronic payment technologies, provides expertise, solutions and services for today with a smart migration strategy for tomorrow. Verifone is leading the industry in the delivery of solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. Verifone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. Verifone has shipped over eleven million electronic-payment systems.