HP is in the cards

Aiming to create a comprehensive platform for on-line commerce, Hewlett-Packard has acquired VeriFone, a Redwood City, Calif.-based company that specializes in electronic payment hardware and software.

The stock-for-stock acquisition gives HP expertise in smart card technology and monetary transactions over the Internet, which it hopes will complement its own capabilities in Internet security technologies, enterprise computing solutions, and professional services and support.

"This acquisition will allow ISPs to offer a number of payment options to their customers," said Rani Goel, Internet segment product manager at HP. "We had been working with smart cards in the past and had partnered with VeriFone. The acquisition means that development will be even closer in the future.

The companies will work to develop solutions based on the Visa/MasterCard Secure Electronic Transaction protocol, an emerging standard for secure credit card payments over the Internet.

VeriFone's product line has expanded from manufacturing credit card readers for the retail market to Internet commerce and smart card-enabled technology for the home, which Citibank has endorsed.