The shakeup, which Ingenico in October hinted was coming, is yet another sign that the traditional POS terminal market is undergoing a transformation. Ingenico’s archrival, San Jose, Calif.-based Verifone Systems Inc., went private in August. Both companies are trying to adjust to a market that is seeing a proliferation of mobile-oriented payment hardware and software options for merchants as well as cloud-based processing services from new rivals.
“Across payment segments, whether it be POS or e-comm, legacy providers are being challenged to keep up, primarily from their own weaknesses in technology,” Jared Drieling, senior director of business intelligence at Omaha, Neb.-based merchant-acquiring consulting firm The Strawhecker Group, tells Digital Transactions News by email. “So, in essence, whether it be Verifone, Ingenico, First Data, or any other legacy provider in the market, there is a huge push to adapt to this new environment with cloud-based functions and connected devices.”