Verifone plans to acquire payment technology and switching solutions provider AJB Software, a move that would allow the point of sale hardware maker to offer more services to its acquiring partners as merchants deploy EMV security and mobile wallet acceptance.
AJB, which has about 150 clients in the U.S. and Canada, provides connections between payment devices and more than 100 processors and applications, covering government benefits, stored value and fleet card payments at merchants such as supermarkets and convenience stores.
AJB will also provide technology certified by major Canadian banks and processors for EMV acceptance, support for Verifone and non-Verifone devices—increasing merchants' ability to expand payment systems. The combined services would also enable merchants to adopt subscription-based hosting options.
"Combining AJB's offerings with Verifone's services creates an unmatched set of hardware-neutral solutions, giving merchants the ability to select from a wider range of products that best meet their business requirements," said Naresh Bangia, founder and president of AJB, in a Jan 15 press release.
Pushing EMV chip card and mobile payment technology is a big part of Verifone's revenue outlook given that more than half of merchants in the U.S. have still not upgraded their point of sale systems to support EMV, the terminal maker says. AJB’s history supporting chip cards in Canada gives it expertise that can be applied in the U.S., Verifone says.
"Merging AJB's solutions and expertise with Verifone's breadth of services and systems expertise will provide retailers multiple options to manage and secure their payment infrastructure and provide more value to their customers," said Jennifer Miles, president of North America for Verifone, in the release.
Financial terms of the acquisition, which is expected to close by the end of April, were not disclosed.