VeriFone Holdings Inc. Monday said it has purchased Orange Logic Ltd., a South Korea-based point-of-sale terminal maker.
South Korea is in the midst of a conversion to the EMV smart card standard, something that San Jose, Calif.-based VeriFone hopes to capitalize on. VeriFone would not disclose terms of the deal.
Though there are more than 2.5 million POS terminals in South Korea, only between 10% and 15% of them are EMV capable, VeriFone says.
“The Korean government launched a national mandate to complete full EMV migration by the end of 2008,” Zvi Mitlanski, VeriFone Asia vice president and general manager, tells PaymentsSource. “However, this resulted in only 10% of terminals being replaced by the end of 2009. The government has now extended its mandate to the end of 2010, with stiffer penalties for non-compliance. Ongoing EMV compliance is certain, but will be slow.”
Orange Logic will operate as VeriFone Korea and will continue to produce its existing product line, VeriFone says. The acquisition also could expedite certification and availability of VeriFone’s recently updated VX terminals (see story), which should give Korean processors more EMV-capable terminals to chose from, VeriFone says.
Mitlanksi would not say how many terminals VeriFone expects to sell in Korea because of this deal. The potential also exists to sell Orange Logic products outside of Korea, he says, but “it is secondary to the focus on the Korean market.”