NEW YORK (TheStreet) -- Verifone Systems (PAY) shares are up 8.1% to $34.73 on Monday after it was reported that Apple (AAPL) decided to use the company's technology to improve the security of Apple's mobile point-of-sale (mPOS) checkout system in U.S. retail stores.
Verifone's mPOS shell will surround Apple's iPhone 5 and provide added credit card information security.
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Previously, Apple used the iPod Touch and a shell made by Infinite Peripherals to facilitate its EasyPay mPOS payment system.
Verifone Systems stock is trading on heavy volume, with 2.67 million shares changing hands in trading already, well above the stock's three month daily average of 1.5 million shares.
TheStreet Ratings team rates VERIFONE SYSTEMS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIFONE SYSTEMS INC (PAY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."