Elavon, a wholly-owned subsidiary of U.S. Bancorp, will market and support VeriFone Systems, Inc.’s PAYware Mobile secure card payment system for the Apple iPhone.

The solution transforms the iPhone into a mobile payment device with a card encryption sleeve that allows merchants to capture data via card swipe, a more secure, cost effective method than manually entering data.

PAYware Mobile will be marketed through Elavon’s established sales channels including bank relationships, telesales, third-party providers and associations. It extends the flexibility of accepting card payments wherever and whenever a merchant requires, and offers real-time reporting including extensive transaction search capabilities. The PAYware Mobile app is PCI compliant, and the card encryption sleeve is compatible with the iPhone 3G and 3GS.

“VeriFone’s PAYware Mobile is a simple, secure and convenient solution ideal for our small business customers,” said Mike Passilla, president and CEO of Elavon. “Technology is rapidly changing the payments landscape, and mobile applications are leading the evolution. The ability to deliver secure, innovative solutions is a cornerstone for driving customer satisfaction and generating new business among merchants that have yet to adopt payment technology.”

“Elavon’s agreement to support PAYware Mobile reflects growing industry excitement over the leading card payment solution for iPhone,” said Paul Rasori, VeriFone senior vice president of marketing. “Elavon’s sales force will significantly expand the marketing reach for this innovative system.”

PAYware Mobile incorporates a stylus for signature capture and a mini-USB port for charging the iPhone while the ergonomic card encryption sleeve is attached. PAYware Mobile incorporates VeriFone’s VeriShield Protect end-to-end encryption technology for secure card payments.