Provider of secure electronic payment solutions VeriFone Systems and Gemalto, a provider of digital security, have announced further developments in their broad strategic partnership.

Originally announced last year in October, the partnership comprises of cooperative efforts in EMV chip card solutions and the handover of Gemalto’s (News - Alert) point of sale (POS) solutions business to VeriFone.

Additionally, it also includes Gemalto’s appointment as the preferred supplier of machine-to-machine (M2M) wireless modules and related solutions for VeriFone payment systems.

According to the latest announcement, the companies have discussed initial plans for jointly introducing EMV chip and pin solutions for the U.S. market.

It’s seen that U.S. banks, retailers and card networks are increasingly acknowledging chip card and contactless technologies as a core component of a comprehensive security infrastructure. Company officials said that the companies intend to introduce EMV smart card solutions, providing a superior cardholder experience and complete data protection at the point of sale.

For both issuing and accepting smart cards, the companies plan to combine their expertise and provide a ready infrastructure to advance the U.S. market toward a more secure and convenient payment method.

Moreover, the companies have finalized the transfer of the POS solutions business, with closing effective Dec. 31, 2010. Company officials said that VeriFone has assumed the fulfillment of existing customer relationships and product requirements for Gemalto POS customers.

Plus, VeriFone has designated Gemalto as a preferred supplier of M2M wireless modules and related solutions. The companies did not disclose financial terms.

Last year in October, VeriFone and First Data Corp. (News - Alert), announced collaboration agreement to offer a VeriFone edition of the First Data TransArmorSM solution to U.S. multi-lane and petroleum merchants.