Unattended retailing set for takeoff
Chip & PIN security opens up huge potential market
June 7 th 2005, Retail Solutions, NEC stand E4: The Logic Group is launching an unattended payment terminal (UPT) variant of its Chip & PIN systems already used by more than 60% of the UK's top retailers. Smart-Switch UPT is designed for merchants, systems integrators and hardware manufacturers. The system comprises the new Secura Chip & PIN modules from Dione, together with Logic Group software and managed service options. The package is one of the first in the world to gain the seal of approval for meeting the latest version (4.1) of the EMVCo standard for UPTs.
Smart-Switch UPT offers, for the first time, a unified Chip & PIN payment approach to retailers operating across multiple channels. Until now, the uptake of self service devices for applications such as pay-at-the-pump, self-checkout and selling high-value goods through unattended kiosks has been held back by a lack of secure card payment technology. Before the advent of Chip & PIN, there was no way to authenticate a card or verify a customer's identity and the liability for fraud laid with the merchant.
"UPTs enable retailers to offer a sophisticated range of self-service options to their customers. This not only increases their routes to market, but also drives increased sales and reduced costs," says Logic Group Marketing Director Mark McMurtrie. "Now that integrated systems are available, retailers have a reliable method of verifying cardholders freeing them from the worry of being liable for fraud carried out with stolen cards. This will inevitably lead to a rapid increase in the number of unmanned pumps, ticket machines, kiosks and fast lanes.
"We expect petrol retailers to be one of the first to adopt secure UPT terminals. Although they obviously want as many people as possible to shop in their convenience stores, they must also react to customer demands. This means providing them with the option of Pay at the Pump and 24-hour operation where it was previously uneconomic."
There is a growing consensus that retailers must adopt a multi-channel approach to ensure that they are as responsive as possible to their customer’s needs. Supermarkets have already recognised the benefits of Chip & PIN at the checkout and are now expected to build on this capability. UPTs offer reduced staff costs, increased customer convenience and the opportunity to provide an extended range of products and services.
The use of self-service and self-checkout technology is growing rapidly worldwide and the market in Europe is ripe for expansion, according to new research from Edgar, Dunn & Associates which estimates that between seven and nine million new UPT devices will soon be installed worldwide.
Kiosk sales are predicted to grow at almost ten percent CAGR over the next five years, with IDC estimating spending reaching $1.24 trillion by 2008. Retail systems, including self-checkout and photo kiosks, made up 25% of interactive kiosk sales worldwide last year. Tourism, transportation and entertainment were the second biggest category, accounting for almost ten percent of sales.
About The Logic Group:
The Logic Group manages information and transactions securely for large and medium businesses across its European home market. The company delivers unrivalled business value to its customers through the secure provision of card transaction processing and communications infrastructure services, together with comprehensive management information. The group previously operated as three separate companies – Retail Logic, Commslogic and Loyalty Logic, each a leader in their specialised fields and has won a number of major awards including the 2005 Queen’s Award for Enterprise for the central role it played in the UK roll-out of EMV Chip & PIN.
