Not so long ago, the experts and analysts began to discuss the benefits of Apple’s potential acquisition of VeriFone, the company that has been handling electronic payments and providing payment terminals. This prediction is based on a set of conditions and circumstances. To be more precise, due to the rapid development of the phenomenon of mobile payments, VeriFone has been gradually losing its revenue under the impact of mobile payment options enabled by Apple and Google with the help of their respective apps Apple Pay and Android Pay.
Moreover, VeriFone, weakened by the reduced income, is now a convenient target for the larger and more successful businesses. In particular, the one corporation that could be interested in the acquisition of VeriFone is Apple that is currently in need of the fresh and diversified sources of revenue to end its period of slower growth (Gennaro, 2016). This acquisition could be beneficial for Apple because the two companies operate in a manner where certain actions of Apple influence the retailers’ reliance on VeriFone and significantly increase its growth of revenue (Shah, 2014).
However, it is important to evaluate the types of challenges that Apple would be likely to face after this potential acquisition. To be more precise, to integrate VeriFone into its organizational structure, Apple could have to implement several changes and prepare for some difficulties. For example, this acquisition would not go unnoticed by the competitors of both Apple and VeriFone such as Google and PayPal. Now that this acquisition has been discussed for a while, it is extremely likely that the competitors have already prepared strategies to respond to this potential development.
Moreover, the new set of systems and operations presented by VeriFone’s services would need to be integrated into the existing markets of Apple. There may be an obstacle here in the form of the clashing services because it is being said that the growing popularity and use of Apple Pay can make electronic payment obsolete (Saintvilus, 2012). In that way, Apple needs to adjust its operations and services to prevent electronic payments supported by VeriFone from going extinct and also support and drive them forward. This can be done with the help of the NFC-ready payment terminals (Apple Pay drives VeriFone sales, 2014; Shah, 2014).
In terms of the organizational culture and the adjustment of the VeriFone’s workforce to the philosophy of Apple, there could be challenges based on the unconventional approach practiced by Apple that is not typical of many other corporations. However, VeriFone has quite a progressive organizational culture that supports autonomy and creativity, similarly to that of Apple, and also promotes initiative, responsibility, and dedication of the employees to the products and services of the company and the addition of value for the consumer (Case Study #1—VeriFone, n.d.). As a result, it may not be challenging to adjust the culture of the newly acquired additions.
At the same time, Apple would have to change the services of VeriFone to assimilate them into the NCF terminals. In that way, it could be wise to keep a part of the services the way they used to be while owned by VeriFone and adapt the remaining operations to the modernized technology. As a result, some of the positions could end up becoming unnecessary and replaced by the new functions. Accordingly, Apple might have to sell the parts of VeriFone that would not match their new duties.
References
Apple Pay drives VeriFone sales. (2014). Web.
Case Study #1—VeriFone. (n.d.). Web.
Gennaro, A. (2016). Apple needs to diversify its revenue stream. Web.
Saintvilus, R. (2012). Why Apple could kill off VeriFone. Web.
Shah, V. (2014). VeriFone Systems Inc. (PAY) to be biggest beneficiary of Apple Inc. (AAPL)’s Apple Pay: Jim Cramer. Web.