Cape Town, 01 Apr 2005
Cape-based DataLinx Technologies sees its deal with furniture chain Ackermans as the first step in challenging Telkom`s FastNet dominance of the point-of-sale electronic funds transfer market.
Since the last quarter of 2004, DataLinx has installed its Cellpad electronic funds transfer product at Ackermans stores across the country. This allows the chain to process credit card and smart card transactions using the cellular GPRS data system rather than the X.25 system used with FastNet`s Radiopad product.
"GPRS is far more pervasive than X.25. We have Cellpad installed in many remote places where Telkom`s coverage does not extend to," says DataLinx MD Rean van Niekerk.
Van Niekerk`s other company, Metacom, developed Cellpad - a black box that connects with either an ATM, an electronic funds transfer card reader or a PC that is used in a point-of-sale application. It then connects with the relevant bank through the GPRS system and a virtual network, or access point name, which is owned by DataLinx, but is situated within the MTN and Vodacom infrastructure.
Ackermans is the first retailer to have the Cellpad and to use GPRS throughout its 300 stores. During the busy Christmas shopping season, an average of 200 000 transactions were handled per day.
"We rolled out over 1 000 devices across 300 stores and will save around R2.5 million per annum in the process," says George Zaverdinos, Ackermans` IT director.
Van Niekerk says the potential market for Cellpad-like devices in the country is about 140 000 units. His company has an installed base of about 2 000 units and is rolling out about 500 per month.
"It is a market with a lot of potential, but there is strong competition out there," he says.
Van Niekerk says migration from GPRS technology to more data-capable services such as EDGE and 3G will depend on demand and how extensive the coverage is for these services.
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