Retailers can significantly increase their revenue streams by expanding their payment and value-added service (VAS) offerings at the point-of-sale (POS).
The problem, however, is that the POS could end up being cluttered with devices that deliver the various services.
Even more problematical is ensuring that the various devices work together, so that customers wanting to use the various VAS - such as purchasing prepaid services while paying for groceries - can do so in a single transaction.
The answer, says Andrew Turpin, solutions director at secure transactions company Prism Holdings, is the adoption of a multi-application terminal, a single device that allows the till to become a single place of purchase, payment and value-added-service delivery.
"A true multi-application terminal combines secure, efficient, cost-effective transacting with a modular architecture that allows new VASs to be added with minimal impact. Retailers can have access to new revenue opportunities and provide additional VAS or payment options without affecting their infrastructure requirements or service continuity," he explains.
That`s because the concept of multiple application at POS is about allowing more than one application - completely independent of another application - to reside on the same device. These applications are in no way affected by each other but are still able to utilise each other`s services via a common interface or managing application.
The managing application must also provide access to the device-level services required by each payment and VAS offering - such as receipt printing, log-on access, user interface display commands and transaction security.
"With the managing interface housing all common services and acting as an abstraction layer between applications, new transaction types can be added to the device and enabled in-store without any major reprogramming of the POS system. As a result, the effort to develop, test, certify, download and maintain applications, including those from third-party vendors, is substantially eased, Turpin explains.
"Because retailers no longer require a separate terminal device for each VAS application, additional payment methods downloaded to the multi-application device become immediately available to existing VAS applications. And by using a managing application, a complete transaction is available - from VAS to payment and receipt - for each application.
"This means retailers can offer all the VAS they would like at their POS - easily, affordably and securely," Turpin concludes.
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JSE-listed Prism Holdings Limited is a leader in the field of secure electronic transaction products, solutions and services. The group has a strong presence in SA and an established and expanding footprint across Africa and South-East Asia.
Prism has a proven track record in the delivery of secure electronic payment technologies and end-to-end solutions for the retail, utilities, banking, cellular and petroleum industries. The group has developed and implemented innovative payment-centric intellectual property that bridges the following technologies:
a. Chip cards including SIM cards, financial smart cards and telephone cards;
b. Point-of-sale frameworks, applications and devices;
c. OEM transaction modules including PIN pads, card readers and self-service terminals;
d. Transaction security modules and servers;
e. Payment servers, messaging gateways and value-added-services gateways; and
f. End-to-end secure electronic payment architectures for wired and wireless networks.
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