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Stanchion, BGA merge in payments space

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 31 May 2012

Stanchion and Baker Gysi & Associates (BGA) have merged to form Stanchion Payments Solutions, a new company that aims to offer complete payments system solutions for the retail and financial services sectors.

While Stanchion has traditionally focused on online payments systems consulting, implementation and management, BGA brings its experience as an integration and custom software specialist for the building of electronic funds transfer systems.

Stanchion Payments Solutions MD Graham Williams says: “While there's software out there that you can buy off the shelf, the problem is making it work in a world of ever-changing standards and regulations. We are now experts in that space. Through this merger, we can literally engage with our customers from the very beginning - from strategising to implementation and customisation.

“In any but the simplest EFT processing system, there is a need for custom software, where BGA excelled. Even if a shrink-wrap solution will fit initially, businesses inevitably evolve in a way that off-the-shelf producers can never anticipate,” says Williams.

According to Williams, the payments landscape is constantly changing, with new ways to pay emerging all the time, leaving the market somewhat undefined. “Everyone is sort of waiting to see who or what medium will win. It's difficult, because we've seen some fantastic technology arrive in certain markets and then just die or fade away for any number of reasons.”

It is because of this that Williams says it is essential for new systems to be properly tested and implemented. According to Williams, the new company is now in a position to be able to help its clients experiment with new ways to pay, with experts on hand to implement, optimise and manage the systems.

“Since different countries have different standards and regulations, we can also handle the issues surrounding testing and certification of new systems. NFC [near-field communication] being one such example,” says Williams.

One-stop shop

Woolworths has been a core client of Stanchion since 2001, and the retailer recently approached the company to provide a wireless payment solution for its WCafe restaurants. As a result, the use of Bluetooth PIN pads has been piloted at the new Woolworths WCafe at the Nicolway shopping centre.

According to Stanchion, the long-term solution will, however, be to move away from Bluetooth and onto WiFi 802.11 technology as this will provide a more stable solution in larger Woolworths stores. The WiFi solution is currently being tested.

While Stanchion Payments Solutions is based in SA, the company aims to target the Southern African region, with its core client base being Blue Chip and emerging banks and retailers.

“This technology is not for the faint hearted or the 'suck it and see' artist,” says Williams. “For a major retailer, even a couple of minutes of downtime could cost millions in angry queues of shoppers with significant brand damage... not to mention the abandoned shopping carts.”

Shaun Baker, director of Stanchion Payments Solutions, says: “We are now a one-stop shop - we can gather requirements, design the system, project-manage putting the infrastructure into place and then manage it. We will troubleshoot problems, and perform stress testing to ensure that when things get busy no cracks appear.”

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