About Verifone, Inc.

Verifone Systems' sales start at 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. It 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. In 2018 the company was acquired by Francisco Partners, a private equity firm, for $3.54 billion.

Change in Company Type

Verifone Systems was sold to Francisco Partners for $3.4 billion and become a privately held company in2018. Verifone plans to continue the shift from point-of-sale hardware to payment and commerce tools under the wing of Francisco Partners. The company's revenue has slumped and it's lost money in four of the past five years. The deal closed in third quarter of 2018.


Verifone's systems segment, accounting for a shade under 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, about 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. More than 35% of sales come from Europe, the Middle East, and Africa region, about 15% from Latin America, and about 10% from the Asia/Pacific region.

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, and 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 account around 20% of the total revenue.

Financial Performance

Verifone Systems has reported declining revenue in the past two years after revenue peaked at $2 billion in 2015 as the company rode a wave of installations of chip-enabled credit card readers around the world. In 2017, the company's overall sales fell to $1.87 billion from $1.99 billion in 2016. Revenue in the systems segment was off 12% because of the reduced chip-enabled reader sales. Revenue from the company's services segment rose 2% in 2017 because of increased demand for device-related and payment-related services, particularly in Europe, the Middle East, and Africa. Revenue decreased in the Taxi Solutions business, which Verifone sold in December 2017, and the petroleum media business, which is sold in April 2017.

In 2017, Verifone reported its fourth loss in the past five years. The loss widened to more than $170 million in 2017 from about $9 million in 2016. Although the company reduced costs in sales and marketing, and general and administrative expenses, it took charges of more than $140 million for restructuring.

The company ended 2017 with about $144 million in cash on hand, the third year of cash declines.


Verifone had benefited from a general trend away from cash and check transactions toward electronic credit and debit payments. In another transition, software is used handle more payment tasks while less is dependent on transaction hardware (though hardware is still the gateway for Verifone revenue). That can be seen in Verifone's revenue statement where systems sales decrease while services rise.

To help it devote more resources to developing services, the company restructured in 2017, reducing headcount, exiting under-performing businesses, and consolidating facilities. During the year, Verifone sold the Taxi Solutions and Petro Media units.

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. It has capabilities for running applications and multimedia for a richer consumer experience. The company also rolled out a mobile point-of-sale system called mPOS.

Verifone is pushing to increase the number of connected terminals in the field, which contribute to growing recurring revenue. At the end of 2017, there were nearly 2 million connected terminals, out of a total of 30 million terminals.

Mergers and Acquisitions

In 2016 Verifone acquired AJB Software Design, a provider of payment gateway and switching products for large merchants in the US and Canada. The deal enables Verifone to offer customer for flexibility and functionality in its devices.

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Verifone, Inc.

88 W Plumeria Dr
San Jose, CA 95134-2134
Phone: 1 (408) 232-7800
Fax: 1 (408) 232-7811


  • Employer Type: Public
  • Chief Information Security Officer: David Galas
  • Chief Revenue Officer: Paul Jankauskas
  • Executive Vice President Sales: Jim Mauritz
  • Employees: 872

Major Office Locations

  • San Jose, CA

Other Locations

  • Lincoln, CA
  • San Diego, CA
  • Santa Clara, CA
  • Clearwater, FL
  • Chicago, IL
  • Las Vegas, NV
  • Humble, TX
  • Pasig, Philippines
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