VeriFone Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: MasterCard said it was looking to introduce a new credit card standard called EMV technology, replacing the currently ubiquitous magnetic strips. The payment-processing giant also said it would incentivize merchants to adopt the new standard, which would require implementing new payment terminals.
Now what: As a provider of payment terminals, VeriFone is seeing some upside on hopes that it will cash in on rolling out the technology and facilitating its adoption. JPMorgan analysts said that MasterCard's announcement has more promise for VeriFone since it is providing incentives, unlike rival payment processor Visa (NYS: V) .
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of MasterCard.Motley Fool newsletter serviceshave recommended buying shares of Visa. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.