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A strategic partnership announced this week between First Data Corp. and VeriFone Holdings Inc. could indicate VeriFone is becoming First Data's primary terminal provider, according to one analyst.
First Data has become a preferred distributor and reseller of VeriFone secure countertop payment products in the U.S. through the processor's Tasq Technology subsidiary.
Tasq delivers value-added repair, maintenance and deployment services for payment terminals.
"Although First Data currently manufactures its own line of terminals for merchants, we suspect that through this strengthened relationship, First Data could eventually have VeriFone provide the majority of the payment systems in its line in order to reduce overhead and potentially offer a better branded product," Darrin Peller, information technology and computer services analyst at Barclays Capital, the investment-banking division of England-based Barclays Bank PLC, said in a research report.
San Jose, Calif.-based VeriFone will design, build and manufacture cobranded countertop payment systems, expanding First Data's line of payment services, according to the companies.
Together, Atlanta-based First Data and VeriFone will explore other opportunities, including non-U.S. reseller and distribution relationships, chip card-based EMV countertop devices, and Class A certification of other VeriFone devices, according to the companies.
First Data and VeriFone "are working together to better serve the merchant community," Ed Labry, First Data president of retail and alliance services, said in a press statement.
