$15 billion.

That’s how much identity fraud costs the credit card industry each year. Sadly, more than half of that fraud occurs in the United States alone.

#-ad_banner-#But Apple’s new mobile payment service, Apple Pay, is looking to greatly reduce credit card fraud by removing many of the risks associated with traditional payment systems.

Consumers who use their iPhones to make purchases will be protected on various levels. First, credit card numbers will not be stored on devices. Instead, each phone will be assigned its own unique device account number, which will not be recorded on Apple servers.

Next, fingerprint verification will be required to initiate purchases and a one-time security code will be issued that relays the purchase data to Apple for processing.These codes will be meaningless to hackers.

Questions, like to what degree credit card information stored on Apple’s servers will be secure from hackers, still need to be answered. But Apple’s new technology is still a step in the right direction toward decreasing the prevalence and magnitude of credit card fraud each year.

And although Apple Pay has been endorsed by major credit and debit card firms, top U.S. banks and many popular retailers, not all companies have gotten on board with the new service.  

A group of more than 50 retailers — including global giants like Wal-Mart Stores, Inc. (NYSE: WMT), Target Corp. (NYSE: TGT) and Best Buy Co., Inc. (NYSE: BBY) — have formed to create a new company called Merchant Customer Exchange (MCE), which recently developed its own mobile payment application.

The rival app, known as CurrentC, is similar to PayPal in that it connects directly to the users’ bank accounts, cutting out credit card companies altogether. You see, retailers must pay credit card companies a fee of up to 4% each time a card is used. CurrentC eliminates this charge.

Unlike Apple Pay, CurrentC will provide the coalition with an inside look into customer shopping habits and trends, which they can then use to tailor special offers and discounts.

Now you may be wondering, “Apple Pay or CurrentC — which is better?” The answer to that question, though, simply depends on your preference. Both mobile payment systems offer a unique set of pros and cons, ranging from their security to convenience.

The real question is, “How do you profit?”

It all comes down to one word: liability.

Starting in October 2015, credit card companies will begin holding retailers still using the old “swipe and sign” payment technology liable for any fraudulent activity, according to The Wall Street Journal.  

With such an increase on the horizon, U.S. retailers that refuse to accept the shift to mobile payments could be opening themselves up to more than $8 billion worth of fraud liability in the near future.

As a result, U.S. point-of-sale (POS) transactions made with a mobile phone are expected to see dramatic growth over the next few years, according to research firm Emarketer.

While Apple and MCE battle for mobile payment supremacy, companies who manufacture and sell point-of-sale terminals are poised to quietly rake in the profits.

VeriFone Systems Inc. (NYSE: PAY) is a global provider of technology that enables electronic payment transactions and value-added services at the point of sale. And as you’ll see, the firm is positioned to benefit as merchants begin a massive overhaul of their POS terminals.

In the company’s Q3 2014 earnings conference call, CEO Paul Galant stated that “some 14 large retailers upgraded their payment systems to VeriFone’s [new] line of terminals” and that “one global retailer ordered more than 40,000 units.” He did not reveal the names of the retailers.

This transition to new equipment likely contributed to VeriFone beating earnings expectations by an average of 22% over the last four quarters.

Its share price followed suit, jumping 33% in the last twelve months, compared to the S&P’s 10% increase.

The firm projects net revenues to reach $2.02 billion during fiscal 2015 — an 8% increase from fiscal 2014. The firm also estimates free cash flow to grow by more than 31% to $150 million in 2015.

As of September 2014, only about 30% of U.S. terminals were capable of new POS payment technology. This leaves plenty of market share waiting for VeriFone to capture and could make it the perfect play for investors looking to capitalize on the mobile payment revolution.

Risks To Consider: Shares of VeriFone currently carry high valuations, with the stock sporting a 4.1 price-to-book ratio, compared to a 1.8 industry average. Investors may want to wait until the company’s valuation falls to more comparable levels.

Action To Take –> Whether you feel more inclined to use Apple Pay or CurrentC, mobile payments are fast becoming the new standard for consumer purchases. VeriFone’s point-of-sale terminal technology makes the company a savvy play for investors looking to take advantage of this global trend.

If you’re looking for other ways to profit from the looming $90 billion mobile payments revolution, then  you have to check out our latest report “The Top 5 Apple Suppliers To Buy Right Now.” Our resident growth expert Andy Obermueller estimates that Apple’s new mobile payment technology could add up to $200 billion to the firm’s current market cap… but he’s found several other companies that could hand investors even bigger profits than Apple. One has already soared 185% in just two years, with no end in sight. To access Andy’s new report — and get several names and ticker symbols — click here.