Clover Network

37°23′11.76″N 122°1′54.07″W / 37.3866000°N 122.0316861°W / 37.3866000; -122.0316861

Clover Network, Inc.
Company typeSubsidiary
IndustryPOS
FoundedOctober 2010
FoundersLeonard Speiser, John Beatty, Kelvin Zheng
Headquarters
Sunnyvale, California
,
United States
Area served
Worldwide
Number of employees
400+
ParentFiserv (through First Data)
Websitewww.clover.com

Clover is a cloud-based Android point of sale (POS) platform that was launched in April 2012. The company is headquartered in Sunnyvale, California, United States. As of the quarter ended September 2020, Clover processed $133 billion of annualized card transactions worldwide, making it the largest U.S. cloud POS firm.[1]

Clover was acquired on December 28, 2012, by First Data Corporation,[2] which itself was acquired by Fiserv, the world's largest merchant acquirer,[3] on July 29, 2019.[4] Bank of America Merchant Services was the first to announce it would sell Clover to its merchant base in October 2013.[5][6] PNC Merchant Services was the second to announce it would sell Clover to its merchant base.[7]

History

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Funding and early history

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Clover was incorporated on October 15, 2010, and raised $5.5M on November 1, 2010.[8] The lead investor was Sutter Hill Ventures with participation from Andreessen Horowitz and a number of angel investors. The company was founded by John Beatty, Leonard Speiser, and Kelvin Zheng. The company secured an additional $3M convertible note from Sutter Hill Ventures in April 2012.[9]

First hardware product

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Clover launched its first hardware solution, the Clover Station, in 2013 and began shipping it in January 2014.[10] Clover opened its App Marketplace to third-party developers in 2014. Gyft announced the launch of its Gift Cloud Service on Clover in April 2014.[citation needed]

First Data announced the sale of 17,000 Clover Stations six months after the release of the product.[11] This put Clover ahead of Square Stand in terms of total units shipped.

On September 9, 2014, Clover announced its work with Apple to support Apple Pay via its Android POS Platform.[12] Clover described the functionality in a blog post[12] that was featured on the home page of Hacker News.[13]

Second hardware product

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Clover announced its second hardware product, the Clover Mobile, at the Money 20/20 conference in November 2014.[14] On March 19, 2015, Clover Mobile won the gold medal for the Best POS innovation at the PYMNTS.com Innovator Awards ceremony.[15] Clover Mobile features a complete EMVCo compliant payments solution with an on-screen pin-pad,[16] that is fully PCI PTS 4.0 compliant.[17] It also features an EMVCo compliant Contactless payment interface which enables it to support Apple Pay among other contactless payment modes. The device has an ergonomic handle with an integrated barcode scanner[18] - with an external wireless mobile printer accessory[19] designed to keep the device lightweight and reduce fatigue.

Third hardware product

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Clover's third hardware product, the Clover Mini was launched by First Data on June 16, 2015.[20] Like Clover Mobile, Clover Mini[21] is a PCI PTS 4.0 approved,[22] EMVCo compliant contact and contactless next generation payment device. Clover Mini has a built-in receipt printer and is designed to be a terminal replacement with the support for advanced payments interfaces, while also allowing Merchants to install apps from the Clover App Market.[23] Clover Mini also features a USB hub allowing easy interface of peripherals such as external barcode scanners, cash drawer [24] and a Merchant keypad (for cases where the Mini is Customer-facing).[25]

Acquisition

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On December 28, 2012, Clover entered into a merger agreement with First Data Corporation.[26] In a radio interview with Wharton professor Rahul Kapoor[27] the structure of the acquisition was explained. An operating agreement was put into place whereby Clover would receive $100M in funding to run independently. First Data would be responsible for sales and support, while Clover built all new payment hardware/software for the company. The deal utilized a "Founder's Clause" that would trigger a very large penalty payment if the parent company interfered with operations of Clover. Thirty two months after the acquisition Clover was mentioned 88 times in the S-1 filed by First Data Corporation.[28] Clover is now owned by Fiserv through the acquisition of First Data Corporation. As of May 1, 2024, Clover raised basic plans over 1000% for users via a forced updated Software terms and agreement. Long time customers who purchased software embedded equipment before 2019, are now being charged for software that was contractually "free" based on original customer acquisition agreements. Several law firms are planning class action suits on behalf of customers as they are now locked out of their accounts unless they agree to new terms and an absurd increase in plan pricing. Clover and Fiserv have refused to buy back the software embedded hardware of impacted customers.

See also

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Sponsorships

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Clover sponsors race team Chip Ganassi Racing with their partnerships with First Data and Credit One Bank. Clover is also one of the sleeve sponsors for the San Jose Earthquakes.[29]

References

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  1. ^ "Fiserv 2020 Investor Conference Presentation". Archived from the original on July 17, 2023.
  2. ^ "First Data Quietly Buys Payments Startup Clover; Launches Point of Sale Platform for Merchants". Archived from the original on September 22, 2021.
  3. ^ "The Nilson Report, Issue 1182, Sep 2020". Archived from the original on September 22, 2021.
  4. ^ "Fiserv Completes Combination With First Data Further Cementing Industry Leadership". October 19, 2023. Archived from the original on June 5, 2023. Retrieved April 28, 2024.
  5. ^ "POS Device Solutions for Small Business". Archived from the original on April 26, 2014. Retrieved April 25, 2014.
  6. ^ "First Data Unveils Sleek Clover Point-of-Sale Solution for Small Business | First Data". Archived from the original on April 26, 2014. Retrieved April 25, 2014.
  7. ^ "Meet The Clover® Family". PNC Bank. Archived from the original on March 14, 2016. Retrieved September 30, 2023.
  8. ^ "Sec Form D". Archived from the original on October 3, 2016. Retrieved August 27, 2017.
  9. ^ "Sec Form D". Archived from the original on June 19, 2018. Retrieved August 27, 2017.
  10. ^ "After a quiet year, Clover emerges with a sexy cash register & a new owner". October 9, 2013. Archived from the original on April 12, 2014. Retrieved April 25, 2014.
  11. ^ "KKR Banks on Bisignano Forging Apple Deal at First Data". Bloomberg.com. September 16, 2014. Archived from the original on January 31, 2015. Retrieved October 17, 2020.
  12. ^ a b "Clover Developers Blog: How Apple Pay works and why it matters for developers". September 9, 2014. Archived from the original on September 20, 2014. Retrieved September 18, 2014.
  13. ^ "How Apple Pay works and why it matters for developers | Hacker News". Archived from the original on March 4, 2016. Retrieved February 19, 2015.
  14. ^ "First Data Debuts Clover Mobile, A Wireless, Tablet-Based Point-Of-Sale". November 4, 2014. Archived from the original on July 6, 2017. Retrieved June 25, 2017.
  15. ^ "All Small Business Payment Solutions | First Data". Archived from the original on October 11, 2015. Retrieved July 19, 2015.
  16. ^ "Clover". Archived from the original on July 22, 2015. Retrieved July 19, 2015.
  17. ^ "Data". www.pcisecuritystandards.org. Archived from the original on November 11, 2018. Retrieved April 30, 2021.
  18. ^ "Take Your Business Mobile with First Data Solutions" (PDF). Archived from the original (PDF) on June 29, 2016. Retrieved July 19, 2015.
  19. ^ "Clover". Archived from the original on July 22, 2015. Retrieved July 19, 2015.
  20. ^ "First Data Launches Clover® Mini, the Future of Payment Terminals" (Press release). June 16, 2015. Archived from the original on July 21, 2015. Retrieved July 19, 2015.
  21. ^ "Clover". Archived from the original on July 22, 2015. Retrieved July 19, 2015.
  22. ^ "Data". www.pcisecuritystandards.org. Archived from the original on November 11, 2018. Retrieved April 30, 2021.
  23. ^ "Clover". Archived from the original on July 22, 2015. Retrieved July 19, 2015.
  24. ^ "First Data Solutions and the next generation of payment terminals – Clover Mini" (PDF). Archived from the original (PDF) on April 24, 2016. Retrieved July 19, 2015.
  25. ^ "Clover". Archived from the original on July 22, 2015. Retrieved July 19, 2015.
  26. ^ "Info". www.sec.gov. Archived from the original on November 11, 2018. Retrieved April 30, 2021.
  27. ^ "Recent Guests". Archived from the original on October 29, 2015. Retrieved October 9, 2015.
  28. ^ "Form S-1". Archived from the original on November 11, 2018. Retrieved August 27, 2017.
  29. ^ "Earthquakes announces sleeve sponsors for 2020 season". Archived from the original on July 13, 2020. Retrieved July 12, 2020.
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