Payment processor First Data Corp. and point of sale manufacturer VeriFone Systems Inc. announced a new partnership, with First Data offering its merchant clients VeriFone's PAYware Mobile solution through its alliance partners.

VeriFone's PAYware Mobile solution is a product that turns smartphones into a mobile point-of-sale terminal. The mobile device fits into a special sleeve allowing it to read credit cards, transmit the payment and even send customers a receipt via email. The service is tailored to merchants that transact business remotely or in the field, such as delivery companies or limo and taxi services.

"With mobile devices becoming a main channel for how we transact and interact, we wanted to make it easier for merchants to maximize their mobile phone investment by turning it into a payment system," First Data SVP of Payment Acceptance Bruce Dragt said in the announcement of the partnership.