Further developments in the broad strategic partnership between VeriFone Systems Inc. and Gemalto have been announced. The cooperative efforts in EMV chip card solutions are entailed by the partnership. The partnership, which was first announced in October 2010, also entails the handover of Gemalto’s (News - Alert) point of sale or POS solutions business to VeriFone. Gemalto has also been appointed as the preferred supplier of Machine-to-Machine or M2M wireless modules and related solutions for VeriFone payment systems.

Initial plans for joint introduction of EMV chip and pin solutions for the U.S. market have been discussed by both the companies. Chip card and contactless technologies are being increasingly recognized as a core component of a comprehensive security infrastructure by U.S. banks, retailers and card networks.

EMV smart card solutions will be therefore introduced by the companies. A superior cardholder experience and complete data protection at the point of sale will be provided by these solutions. A ready infrastructure to advance the U.S. market towards a much more secure and convenient payment method will be provided by combining the two companies’ expertise for both issuing and accepting smart cards.

The transfer of the POS solutions business has also been finalized by the two companies. The finalization became effective from Dec. 31, 2010. The fulfilment of existing customer relationships and product requirements for Gemalto POS customers has been assumed by VeriFone. These customers are mainly located in the Middle East, South Africa and India. VeriFone's preferred supplier of M2M wireless modules and related solutions will now be Gemalto. The companies have, however, not disclosed any financial terms.

Gemalto claims to be the top company in digital security in the world. The company operates out of 75 offices and has more than 10,000 employees. The company also has research and service centers in 41 countries.

VeriFone Systems, Inc. said it is the top company in secure electronic payment solutions across the world. Value to the point of sale with merchant-operated, consumer-facing and self-service payment systems is provided by VeriFone with its expertise, solutions and services.