Two-year contract to manage rapidly growing portfolio of payment devices across multiple market segments
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VeriFone Systems, Inc. (NYSE: PAY), today announced it has been awarded a two-year contract to provide managed services for as many as 100,000 POS payment devices operated by ChinaPnR, a leader in China's electronic payment industry. Under the agreement, ChinaPnR is outsourcing the management of increasingly complex payment devices to VeriFone so it can better focus on its core business.
VeriFone is providing installation, training, and maintenance services for all existing payment devices and new installations over the course of the agreement. The agreement builds on VeriFone’s previous relationship providing operation and maintenance services for ChinaPnR’s air travel business units in 2012. China PNR provides payment services to customers in the air-ticketing, commercial distribution, digital entertainment and other markets, with an annual settlement amount exceeding hundreds of billions Yuan.
“VeriFone is providing managed services that shield China PnR and other customers from the complexity of payments technology so they can focus on core business issues,” said Zvi Mitlanski, president, VeriFone ASPAC. “VeriFone’s track record in establishing service coverage across China, has proven our ability to meet the growing demands of Chinese customers for customized products, value-added services and complete solutions.”
China's payment market has experienced rapid growth as banks and third-party service providers compete to offer conventional and innovative payment services to their customers. Between 2006 and the end of 2012, POS devices installed in China have grown 7.1 million, a 43 percent compound annual growth rate, and 3.5 billion bank cards are now in circulation, according to the Peoples Bank of China.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for VeriFone Systems, Inc
This press release includes certain forward-looking statements related to VeriFone Systems, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on VeriFone management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Systems, Inc. These risks and uncertainties include: customer acceptance and adoption of our new solution offerings, successful certification of additional VeriFone Vx products with WorldPay, our ability to protect against fraud, the status of our relationship with and condition of third parties upon whom we rely in the conduct of our business, our dependence on a limited number of customers, uncertainties related to the conduct of our business internationally, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. VeriFone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
As a leading financial payment company in China, ChinaPNR provides a comprehensive range of payment services, including online, POS and mobile payment, with a focus on offering customized integrated payment solutions to its customers. The company's payment transaction volume exceeded 600 billion yuan (approx. US$96.7 billion) in 2012, up 100 percent compared to just over 300 billion yuan (approx. US$48.3 billion) a year earlier. Currently, ChinaPNR has established strategic relationships with 48 fund firms, all of China's airlines, 360buy.com and Suning.com, among other companies, and has become a pioneer in financial payment.
About VeriFone Systems, Inc.
VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.