PAYMENTS
17
IS THE RETAIL SECTOR
NEWCASTLE
STUCK IN A PAYMENTS RUT?
UNITED
F
our in ten consumers would be happy Yet many retailers were resisting the
LAUNCHES
with a cashless society, yet half of retailers consumer preferences and technology
think there is nothing they can do to available. Retailers were often more BARCLAYCARD
improve payment systems. comfortable sticking to antiquated payment
Research released recently by RBS methods – amazingly, over half (54%) told
GIFT CARD
WorldPay, UK payment solutions provide, researchers their customers still regularly pay
revealed that half (52%) of retailers surveyed for goods by cheque.
admit upgrading their card payment solutions Over half (52%) of retailers agreed and
have had a positive impact on their business believed there will be a cashless society – but
– in fact making improvements to payment this didn’t play out when it comes to business
systems increases pro½ ts by an average 18%. decisions. Seven in ten retailers admitted
One in four claimed pro½ tability had increased they would not be in a position to accept
between 25% and 50%, with some retailers contactless cards within the next ½ ve years.
claiming even greater pro½ t growth due to While, less than one in ten (8%) of general
improvements to payment systems. retailers currently has the technology to accept
Despite these proven bene½ ts of contactless card payments, despite six in ten
improvements to payment systems, one in ½ ve (63%) thinking that within ten years’ time most
professionals in the industry claim they don’t people will buy most small value products with
undertake any research to ½ nd the right payment the wave of a card or handheld device.
system for their business and half do not think Ron Kalifa, RBS WorldPay managing director
there is anything they could do to improve the commented: “Our research revealed that
payment technology they offer consumers. large or small retailers rightly put customer
Their customers, however, may not service before anything else – but with six
agree: when RBS WorldPay asked over 1000 in ten (59%) consumers saying they are too
consumers for their thoughts on payments in embarrassed to pay for small items with cards
Newcastle United Football Club
the retail sector, seven out of ten said they want and a quarter saying that paying by card in
(NUFC) recently became the ½ rst
faster, less hassle and more secure payment places like bars and restaurants takes too long
solutions from retailers. Over two thirds (67%) of – offering the right payment solutions can
Barclays Premier League club to sign up
consumers wished that independent retail outlets speed up service, offer customers choice and
to Barclaycard Payment Acceptance’s
offered more card solutions and nearly half of increase pro½ tability.
Prepaid Solutions, a new product
consumers admitted that they would rather “While payment by iris recognition may
that provides retailers with a more
pay for all transactions by card and not bother seem far-fetched, technology is moving quickly cost-effective and convenient way
with cash at all. Even a quarter (24%) believed and it is important that businesses consider to offer own branded gift cards and
that one day microdots will be inserted into our their payment solutions as an important part
other stored value solutions to their
hands to enable people to truly ‘wave and pay’! of the overall service they offer customers.”
customers.
The NUFC Gift Card will be
DIGITECH ELECTRONICS TARGETS
branded with an image of Newcastle
United’s club badge and will replace
CARD-NOT-PRESENT PROTECTION
the club’s current paper-based gift
voucher scheme. NUFC customers are
Digitech Electronics is a Middlesex-based home entertainment retailer that needed to
now able to purchase the new club gift
adopt an innovative security solution to avoid losing out to fraud.
card at the club’s four of½ cial stores
Digitech Electronics uses payment service provider, SecureTrading to enable customers
and redeem it on the whole range of
to make purchases using their debit or credit cards. One of the main bene½ ts of using
such a payment partner is the access to security products such as 3-D Secure, Address
of½ cial merchandise.
Veri½ cation System (AVS) and Card Security Codes (CSC), which provide advanced
As an existing Barclaycard customer,
protection against potential online criminals. SecureTrading also offer a Quarantine Service,
NUFC already had Barclaycard
enabling merchants to review transactions before making a decision to settle them.
Payment Acceptance terminals in
In addition, Digitech Electronics can also tap into more sophisticated counter-fraud tools its stores so integration of Prepaid
on an ad-hoc basis to check and monitor particularly suspicious transactions. The company Solutions was quick and easy to
utilises SecureTrading Identity Check, an advanced identity veri½ cation service, to cross-
activate using existing card terminals.
reference buyer information using a number of databases to con½ rm that someone exists
The gift card technology has made
and lives at their given address.
no change to NUFC’s terminal rental
“To avoid becoming a victim of fraud, it is important to stay one step ahead of the
charge and therefore presented the
criminal by utilising any means available,” said Amir Khan, Digitech Electronics managing
club with a great way to enhance the
director. “SecureTrading’s validation and security processes have given us peace of mind that
each transaction is from a genuine, paying customer.”
customer experience.
MARCH 2009 RETAIL TECHNOLOGY
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