To boost its mobile-payment strategy, VeriFone Systems Inc. announced Wednesday it has acquired the assets of Way Systems Inc., a point-of-sale terminal and gateway services provider for mobile merchants. The purchase price included a $6 million upfront payment and an earn-out payable in one year of up to an additional $3 million if certain performance targets are met.
In the past five years, Way Systems has built a customer base of more than 25,000 mobile merchants. VeriFone immediately will take over support of those merchants within its PAYware Connect Gateway infrastructure. VeriFone also will offer continuous support for all existing Way mobile systems, bolstered by VeriFone’s mobile portfolio, including PAYware Mobile and VX Evolution secure payment systems.
Way Systems has received several patents in the United States, Europe and China for such intellectual property as the connection of a magnetic stripe card reader to a mobile phone, personal digital assistant or smart phone.
Bill Melton, VeriFone founder, provided the initial capital for Way Systems in 2002.
