Grintek Telecom today announced that it has formed a new operating business to address the needs of the South African electronic payments market sector. This new business unit will be making available the latest international, Point-of-Sale (POS) terminals, communication and networking products and host transaction processing systems to benefit banks and retail merchants located throughout the country.
This move takes Grintek Telecom into a rapidly expanding market sector, potentially worth in excess of R100-million annually and follows the company's appointment as a distributor of Hypercom Corporation's Point-of-Sale and ascendent transaction software systems. Grintek already markets and supports Hypercom's network systems products within South Africa and is now able to offer its client-base Hypercom's complete end-to-end payment solutions.
The new products and services will benefit all sectors of the community and be available within rural areas in addition to the main city locations. Consumers will be able to gain secure access to cash, make purchases at retail outlets and ensure merchants can accept transactions from the increasing number of international tourists and business travelers. Payments can also be made securely at newly emerging shops being set up on the Internet.
"Although this is a new venture for us, we're confident that we can successfully penetrate this market," says Dr Erwin Schumann, managing director, Grintek Telecom.
"Hypercom is a major force in the electronics payments industry globally, being responsible for one in eight POS terminals sold today. We will be leveraging this world-wide market leadership with our own networking specialisation and the retail expertise within Kunene Brothers," he adds.
The Hypercom product line includes innovative multi-function, touch screen POS terminals with full smart card capability, high security PIN pads and a range of fast communication options. In addition to providing authorisation and switching services, the ascendent Transaction processing applications efficiently handle new loyalty card transactions, an electronic signature capture and retrieval service and providing secure electronic payments across the Internet.
Hypercom Corporation, a company listed on the New York stock exchange has annual revenues in excess of $250 million and leading market share in the Asia Pacific and Latin American regions of the world. POS sales growth of Hypercom terminals in the large US market is in excess of 40% and the company is rapidly closing the gap on industry leader VeriFone.
According to Rob Meli, managing director, Hypercom Europe, Middle East and African Region, "We're pleased that Grintek Telecom will now be marketing our complete end-to-end product line in South Africa. Their strong management team, together with extensive communications and retail expertise, will ensure that all communities of South Africa can benefit from the latest international payment systems," says Meli.
Grintek Telecom is planning to offer a bureau - type service and is taking a systems approach to the electronic POS market, rather than the traditional terminal-based service. The company will use its Value Added Network (VAN) for delivering transactions generated at POS terminals. Initially, this will service Gauteng communities before being expanded nationwide.
The prime markets targeted are those retail outlets that currently use mechanical 'zip-zap' machines for credit card transactions.
"These traders have very little security protection when they process transactions in a paper based manner. Once they have a new electronic terminal, transactions can be authorised on-line, giving merchants a guarantee that they'll receive their money," says Schumann.
Credit verification and protection against stolen cards and fraudulent usage, is higher using VAN technology than conventional data communications. All transactions on the Hypercom system are live and the database can be updated in real time so that merchants can get protection from up-to-the minute information. "Not only is the security data on our VAN more current, but the network is more resilient and so provides better network up-time, particularly for remote areas," he says.
The vast emerging Internet Commerce market requires secure payment solutions for consumers, merchants, banks and processors. Together Grintek Telecom and Hypercom have the ability and products to become a leading player in this new market.
Share
Editorial contacts