About Hypercom Corporation

The point of VeriFone Systems' sales is the point of sale. The company makes hardware and software for conducting non-cash transactions at cash registers, gas pumps, on mobile devices, and other devices. Users can swipe or insert cards or hold smart phones within range to conduct transactions. Its also provides smart card and check readers, receipt printers, and internet commerce software for large chains as well as small businesses. It also provides installation, training, and other services. Customers include companies in the hospitality, retail, and healthcare markets, as well as government agencies. VeriFone generates about 60% of sales outside the US.


VeriFone's systems segment, accounting for more than 60% of revenue, sells point-of-sale electronic payment devices, security, and encryption software, and certified payment software for payments and commerce applications. The services segment, 40% of revenue, offers transaction services, managed services and terminal management, payment-enabled media, in-taxi payment, security, and other value-added services at the POS. The segment also handles software development, installation and deployment, warranty, post-sale support, repairs, and training.

Manufacturing is outsourced to third party contractors concentrated in China and Brazil.

Geographic Reach

The US is VeriFone's largest single market, accounting for about 40% of sales. Brazil, the only other country that VeriFone breaks out, contributes about 6% of sales. More than a third of sales come from Europe, the Middle East, and Africa sales regions, and the Asia/Pacific region accounts for 10%.

The company is headquartered in San Jose, California and has offices and research facilities in Clearwater, Florida; Rocklin, California; Alpharetta, Georgia; and Long Island City, New York. International offices and research facilities are in Canada, Mexico, Brazil, Europe, Asia, Australia. The company has sales in more than 150 countries.

Sales and Marketing

With clients ranging from small merchants to government-sponsored payment processors, VeriFone augments its direct sales force with a network of distributors, resellers, and systems integrators. The company's customers are financial institutions, payment processors, large retailers, petroleum companies, transportation companies, government organizations, healthcare companies, quick service restaurants, smaller merchants, and retailers. Its 10 largest customers accounted around 20% of the total revenue.

Financial Performance

VeriFone's 2016 revenue (ended March) was flat from 2015 at about $2 billion. A 9% increase in services sales nearly balanced a 6% drop in systems sales. In systems, sales of countertop and pinpad devices dropped on reduced demand in the Asia/Pacific region and Latin America because of economic weakness and competitive pricing. Sales of devices for chip cards (EMVs) fell because many top retailers had already made the switch from swipe card. The company did see EMV-related revenue increase with the increasing adoption of EMV-capable devices by gas stations. In services, revenue increase about 11% from the acquisitions of InterCard and AJB. The company's increased emphasis on expanding its service offerings generated more than $11 million for payment-related services in North America in 2016.

VeriFone posted a net loss of $9 million in 2016, a turnaround from a $79 million profit in 2015. Higher 2016 expenses included $41 million that went toward a restructuring that reduced headcount, consolidated facilities, and paid for a terminated contract.

Cash from operations was $194 million in 2016 down from about $250 million in the prior year. The change from net income to net loss was partially tempered by an improvement of about $35 million improvement from better working capital management.


VeriFone has benefited from a general trend away from cash and check transactions toward electronic credit and debit payments. In addition to credit and debit card readers, the company has developed systems that handle radio-frequency identification (RFID) cards, mobile phone transactions, gift cards, electronic bill payments, signature capture, and benefits transfers.

In 2016, VeriFone restructured by reducing the number of employees and contractors, reassigning some employees, and consolidating facilities, including data centers. VeriFone recorded write-downs totaling $41 million that included charges for employee termination benefits and facility-related costs as well as termination costs for a service the company ended. The restructuring's purpose was to reduce in expenses in some areas and refocus investment in other, faster growing areas.

VeriFone plans to more closely align its systems and services and will operate just one business segment that combines the two beginning in 2017. The company believes the switch will help it provide a broader range of services. The plan involves connecting its terminal systems to its network, which would allow VeriFone to leverage its network of terminals in its services offerings.

The company has rolled out two new payment platforms. The Carbon iPOS (for integrated Point of Sale) is a comprehensive electronic point product that includes value-added services for small and medium-businesses. The Engage platform replaces VeriFone's multilane, portable, and countertop devices as well as pinpads. It has capabilities for running applications and multimedia for a richer consumer experience.

VeriFone was disappointed when regulators delayed the required shift for EMV at-the-pump for three years, which could slow down those sales. However, VeriFone's partnership with Gilbarco, the maker of gas pumps, will help it capture significant revenue over the next several years.

While the US market has largest adopted electronic POS transactions, other parts of the world still rely mostly on cash. VeriFone is using acquisitions to increase its penetration of international markets.

Mergers and Acquisitions

VeriFone's acquisition of InterCard increases its business in Germany. The company intends to raise its profile in Turkey with the acquisition of Panorama.

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Hypercom Corporation

8888 E Raintree Dr Ste 300
Scottsdale, AZ 85260-3951
Phone: 1 (480) 642-5000


  • Employer Type: Public
  • Human Resources Officer: Irina Delapaz
  • Senior Vice President Of Production Deve: Chris Henry
  • Director Of Sales Support: Michael Rochette
  • Employees: 1,431

Major Office Locations

  • Scottsdale, AZ