Verifone (NYSE: PAY) will still be "THE WAY TO PAY"

Implications: Among all players in this industry, Verifone remains in the best position to execute and be successful. The issue on hand remains categorized as an “honest oversight” isolated during Q1, Q2 and Q3 of the current fiscal year, and so far there was no reaction from their customers. Verifone, will most likely use this opportunity to accelerate the development of new technologies while they will deliver consistent and profitable growth. New industry trends like contactless payments and m-Commerce will further determine which POS manufacturer will be able to focus and keep pace with these already established market requirements.  Key performance indicators like inventory days and DSO will remain the focus of upcoming earnings releases. New industry trends like contactless payments and m-Commerce will further determine which POS manufacturer will be able to focus and keep pace with these already established market requirements.

Analysis: The payments industry has many intricacies and is becoming a lot more competitive and complex than ever before, through factors outside of the control of POS manufacturers, and so far only Verifone has shown its ability to integrate a major acquisition, while delivering new products and solutions to the market place.

The Lipman acquisition has been very strategic complimentary to the growth and scalability of Verifone. Also, Verifone inherited a very talented management team.

The POS manufacturers are challanged with new market requirements and increasing demands for alternative payment instruments (for contactless and m-Commerce are needed, while they need to deliver quality products for the existing customers. By entering the world of contactless payments and m-Commerce, a service business model will add more comlexity to their existing operations.