Oct 9 (Reuters) - Shares of VeriFone Systems Incfell as much as 8.5 percent after a report that mobile paymentsstartup Square Inc was set to displace VeriFone in some New YorkCity cabs.
Research firm PrivCo, quoting sources close to Square andthe New York City, said the City would likely soon announce acontract to put Square payment systems into about 1,000 cabs.
Both Square and the New York Taxi and Limousine Commission(TLC) rejected the PrivCo report.
"There is no truth whatsoever to PrivCo's reportedstatements regarding a deal in the works between Square and theTLC," Commission spokesman Allan Fromberg said.
VeriFone and privately held Creative Mobile Technologies runthe payment and entertainment systems in New York's 13,000 cabs.
Shares of VeriFone were down 7 percent at $28.68 on the NewYork Stock Exchange in afternoon trade, after dropping as low as$28.22.
The company did not comment directly on the report, whileSquare said PrivCo's report of an imminent deal had "no basis infact."
PrivCo said on Monday that Square, co-founded by Twittercreator Jack Dorsey, would equip about 1,000 cabs with creditcard readers attached to iPads over the next 12 months, costingSquare $1 million. ()
New York City Mayor Michael Bloomberg and Dorsey took a ridein a taxi last weekend and used the Square device to pay for theone-block ride, PrivCo said.
(Reporting by Aurindom Mukherjee and Sayantani Ghosh inBangalore)
Keywords: VERIFONE TAXI/