In a deal valued at R30 million, the Shoprite Group of Companies - Africa`s largest food retailer - has embarked on a three-year project to replace the existing base of card readers in all its stores.
The massive project is being undertaken in partnership with secure electronic payments company, JSE-listed Prism Holdings Limited. It involves Shoprite migrating to a standardised payment platform that will enable the company to remain at the forefront of electronic payment developments for the foreseeable future.
Llewellyn Walters, Prism`s group sales director, says the project required Prism to develop and implement an end-to-end payment solution for the retailer.
"This system incorporates every aspect of the payment process, from developing the software applications the secure point of sale (POS) card acceptance devices - ensuring they are EMV (Europay, Mastercard, Visa) compliant - through to the back-end switching of transactions via Prism TranSwitch Services to Shoprite`s acquirers," he explains.
EMV is a global standard for the design, security, and functionality of smart card terminals and applications. Visa and MasterCard have mandated that in future all POS terminals must be EMV compliant.
The roll-out of the system, which is already underway, places Shoprite at the forefront of front-end card processing in Africa.
It also marks one of the world`s first mass implementations of the latest, most sophisticated programmable POS card acceptance devices, the VeriFone SC 5000.
The SC 5000s support not only global smart card solutions based on the EMV specifications, but also existing magnetic stripe debit and credit cards, which are likely to remain in use for at least five to 10 more years.
In addition, the SC 5000 raises the level of fraud protection for PIN-based debit card transactions because it adheres to the Triple DES (3DES) encryption standards being adopted by the payment industry around the world.
Gert Mentz, IT General Manager at Shoprite, says Prism and Shoprite have come a long way together over the years.
"However, this new project is one of the most complex yet undertaken by Shoprite. We are therefore delighted that the company which could provide all the elements in the payment chain and which also has the expertise to meet our future EMV requirements is one with whom we have developed a long-standing relationship.
"We are confident that implementation of the new solution will enable Shoprite to deliver on our customers` service and payment expectations into the future," Mentz concludes.
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JSE-listed Prism Holdings is a world leader in the secure electronic transaction market. With a growing presence in Europe and South-East Asia, Prism is one of the few companies in the world offering services solutions and products that bridge the following core technologies:
* Security - sophisticated cryptographic security solutions, many developed using own intellectual property resources;
* Payment solutions in the physical and virtual (Internet and wireless) realms; and
* Smart card technologies spanning both wireless communications and electronic payments.
Shoprite
The Shoprite Group of Companies, Africa`s largest food retailer, operates some 615 corporate outlets and has a turnover of R22 billion (2001/2002). The company`s headquarters are situated in the Western Cape, and the group currently has outlets in 13 African countries apart from its diverse interests throughout SA.
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