VeriFone Holdings Inc. is supplying 130,000 payment products to Russian bank Sberbank in a multimillion-dollar deal announced today, according to the San Jose, Calif.-based payment-terminal manufacturer. Sberbank is Russia’s largest bank.
Sberbank will distribute VeriFone countertop and wireless terminals and PIN pads among an undisclosed number of merchants. The bank ordered the Vx 510 dial, Ethernet and GPRS countertop products, the Vx 610 wireless system, the Vx 810 programmable PIN pad and the PP1000SE PIN pad, according to VeriFone.
“Russia is one of several large, emerging markets for electronic payment products,” says a VeriFone spokesperson. “The market is vast with great potential” because the population is large but terminal penetration is relatively low, says the spokesperson.
The spokesperson declined to reveal the specific monetary value of the order.
It is a large order from a large bank, says Nick Holland, an analyst with Boston-based consulting firm Aite Group LLC. However, “it’s just a big order” and likely does not have broader implications, he says.
In a separate agreement, Sberbank ordered 16,000 Vx 810 systems in the fourth quarter of 2009 and deployed them over a three-month period to bank branches, according to the spokesperson. Consumers use the systems at the branches to identify themselves to bank tellers using their credit or debit cards and PINs.
VeriFone has partnered with INPAS Company since 1995 to supply payment products to the Russian market. INPAS is a VeriFone International Partner, and the company provides services and applications to complement VeriFone electronic payment systems and serves as a distribution channel for VeriFone products.
A Sberbank contact did not return requests for comment by CardLine deadline.