Grintek Telecom has been selected to provide Radiospoor, a service provider of Vodacom, with Hypercom Interactive Consumer Environment (ICE) terminals, which allow Radiospoor to issue prepaid airtime PIN numbers at retail outlets instead of using traditional 'scratch cards'. The contract is worth R3.4 million for the initial provision of 720 terminals.
Currently prepaid cellphone users make up about 75% of the South African market, some 97 million users. This is expected to grow to 90% of the market within the very near future.
According to Andrew Springate, chief executive officer of Radiospoor: "Bearing statistics like these in mind, it is easy to see why Radiospoor regards the prepaid market in this country as a dynamic and growing one, which will benefit substantially from the introduction of the ICE terminals."
Radiospoor previously provided so-called 'scratch cards' to the consumer market, with a PIN number on each card, which could be entered into the customer's cellphone, crediting them with a defined amount of airtime.
"There were, however, quite a few problems associated with this method of prepaid airtime distribution," says Kerry Stephenson, e-business executive at Radiospoor.
"These mainly revolved around the transport and logistics of the so-called 'scratch card' delivery to our retailers. Nationwide transportation was not only expensive, but also involved inherent risks such as hi-jacking of the cards, or the fraudulent printing of cards, which are perceived to have a monetary value on the black market. Not to mention issues for the retailers themselves, such as running out of stock if they judged their customer demand incorrectly," he explains.
"The Hypercom ICE terminal allows the retailer to generate a PIN number automatically, according to the amount of airtime requested by the customer," points out Ernie Muller, e-commerce manager at Grintek Telecom.
"Essentially, the Hypercom ICE terminals are like merchant credit card machines, with user-friendly and convenient touch screens," Muller clarifies.
However, according to Muller, the value-added benefit of the Hypercom ICE terminals lies in their multi-functionality.
"These terminals may be used for banking transactions, using credit or debit cards; and, because they also include a Web browser, may also be used to book and pay for tickets over the Internet," he says.
"They may also be used by the retailers to communicate directly with Radiospoor, in terms of issues such as having immediate access to credit and account histories, as well as to a digital stockholding which can be drawn on at any time."
Springate comments: "We feel that via the Hypercom ICE terminals, we are able to offer an enormous value-add to our immediate clients - the retailers - by offering them the ability to tailor their service offerings, from airtime through to banking services.
"In addition, the terminals meet the all-important EMVCo industry compliance standards, which is another huge benefit to retailers, as their banking institutions will not accept transactions done using non-compliant equipment after 2004. In effect, the terminals we are providing are future-proofed," he concludes.
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Grintek Telecom, a division of JSE-listed Grintek Ltd, is one of SA's leading empowerment IT and telecommunications solutions and integration companies. Grintek Telecom provides tailored and innovative IT solutions from initial project and business requirement consulting, through to implementation, integration and ongoing support.
The company's telecommunications solutions have been implemented in more than 500 top South African companies and it provides solutions, services and maintenance in 23 African countries. Over 24 international vendors have selected Grintek Telecom as their local service provider and partner.
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