Way Systems

About Way Systems

Founded in 2002 by Will Wang Graylin, Way Systems carved a niche for itself in the financial technology sector by focusing on mobile point-of-sale (POS) solutions. The company was established to address the growing demand for low-cost, wireless POS systems, particularly for mobile merchants who were underserved by traditional, land-line based terminals. Based in Woburn, Massachusetts, the firm designed, developed, and sold a range of mobile POS devices and gateway services.

Way Systems' core business centered on providing end-to-end infrastructure that included hardware, software, and messaging elements. Their product line featured pocket-sized Mobile Transaction Terminals (MTT) that combined the functionality of a mobile phone, a magnetic stripe card reader, and a smart card reader. Models like the MTT 1510 and MTT 1581 operated on nationwide GSM networks, allowing merchants to process credit and debit transactions wirelessly from virtually any location. The company also supplied peripherals such as mobile printers, car chargers, and holsters. Revenue was generated through the sale of these hardware devices and recurring gateway fees from the merchants using their transaction services.

The company's approach transformed GSM mobile handsets into portable payment terminals, aiming to expand the market for card acceptance from large and medium-sized merchants to a much larger pool of over 100 million small and mobile businesses. Over its lifetime, Way Systems successfully raised a total of $31.5 million in funding over four rounds from investors including Austin Ventures, Bessemer Venture Partners, and Visa. In September 2010, after reaching its growth limits with its existing capital, Way Systems was acquired by VeriFone Systems Inc. for an initial amount of $6 million, with an additional $3 million in potential earnouts. The acquisition was attractive to Verifone due to Way's established base of 25,000 service-based customers, which aligned with Verifone's strategy to grow its recurring revenue services.