ew system is called ValuCard Systems, and it consists of reader/writer devices that monitor the value on prepaid cards, "ValuStations" that dispense prepaid cards, and devices that fit into vending machines to accept prepaid cards. This new market appears promising, with many different potential applications, and VeriFone hopes to gain a foothold in the prepaid arena by starting in the areas of vending and catering and then expanding to other applications. With 6.3 million vending machines in existence today, and an estimated 400,000 new machines shipped each year, even a relatively small penetration of this market could be highly profitable ("VeriFone reveals strategy for profiting in the prepaid card market," 1991, 7-8).
VeriFone's basic market consists of retailers who accept credit cards, and the bulk of these businesses are specialty retailers and restaurants. Foreign markets are also addressed by VeriFone, but these markets require additional capabilities from VeriFone terminals because of peculiarities in the
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