The U.S. payment terminal companies Hypercom Corp. and VeriFone Holdings Inc. will face increased earnings pressure this year as the global economy slows and a French rival, Ingenico SA, tries to expand in the United States, according to Gil Luria, an analyst with Wedbush Morgan Securities.

Ingenico "is offering free low-end terminals through at least one channel partner as part of its aggressive push" into the U.S. market, Mr. Luria wrote in research notes published Monday. At the same time, terminal demand in the United States is slowing, because of a "reduction in business starts, especially restaurants."

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