Many markets in the world still to be conquered
As North America generates only 10% of Ingenico’s sales, the French company has theoretically high growth potential despite a recent decline in sales due to regulatory constraints. Widespread use of the EMV system (smart cards) has not benefitted Ingenico as much as expected.
Given its location, South America is an obvious opportunity for Verifone. But Ingenico also has potential, since only 7% of its sales are generated here, and its Brazil sales grew 27% in 2017.
In Asia, it is uncertain whether Verifone will be able to catch up with Ingenico. Verifone grew only 3% there due to the entry of local players like PAX Technology (founded in China), SZZT (Shenzhen, China) and Newland Payment Technology (Fuzhou, China).
It can be speculated that Africa’s proximity to Paris-based Ingenico facilitates this company’s development opportunities on that continent.