MARKET INSIGHT: TECHNOLOGY 13


“Effectively, we develop a ’Monopoly board’ for each shopping mall or high street store, revealing the SPO performance levels of their properties,“ says Biggar.


“Actually, our competitive advantage is not necessarily our data-gathering technology, but in showing clients what they can do with the data.“


Staffing has soared to 40 system programmers and data analysts, despite difficulty in recruiting skilled UK practitioners, and Path Intelligence now has offices in London, San Francisco, and New York.


Currently, Path Intelligence is developing Flockr.com, a


subscription service enabling mobile users to receive location relevant retail news, advice and promotions while they are shopping. Convergence of mobile online and offline shopping and shared industry data is likely in future, predicts Biggar.


While aiming to develop an SPO benchmarking system for its retail sector, Path Intelligence is happy to exploit commercially its significant worldwide opportunities within shopping malls and major store chains. But, Biggar adds: “We would love to be given the challenge of helping to resolve dereliction in UK High Streets.“


Funding for growth remains an issue. Path Intelligence began life in 2004 with the help of three ’angel’ backers, grants for open-source innovation and Southampton University collaboration, and funding from the now defunct SEEDA.


“We needed a lot of funding to create prototypes, and in 2007 we got additional VC equity investment from America – where it’s easier to gain than in the UK. At the moment, we can’t get banks to lend because we’re not yet profitable enough. In fact, I don’t think we could have launched our business under today’s current conditions.“


SPIRE PAYMENTS – A rapidly-advancing sector


Technology is changing the way consumers and companies handle the oil of commerce – money.


Salisbury-based Spire Payments has manufactured payment terminals and developed secure payment solutions within its sector for 30 years. With some of Europe’s top financial and retail organisations among its customers, we asked Dave Millener, head of Northern Europe for Spire Payments, for his thoughts on recent developments in payment technologies.


“The payments sector is embracing change through the rapid advancement of mobile payment solutions, using the most advanced contactless and Near Field Communication (NFC) technology. It is already possible in some cases for consumers to use smart phone devices to make payments both online and in-store and the availability of such payment options is expected to grow rapidly,“ said Millener.


In response to market demand, Spire Payments has introduced a new range of state-of-the-art POS terminals, all of which include integrated contactless technology, enabling consumers to make contactless card payments up to the UK industry standard limit of £20 for ’pay and wave’ transactions.


Millener added that mobile payment solutions are now


Dave Millener


available for small businesses such as gardeners, window cleaners and mechanics who need to accept ’card payments on the move’. Addressing this growing trend, Spire Payments is launching a mobile payment device aimed at this market in 2013.


In answer to the question of how does he foresee mobile payment and acceptance methods evolving over the next few years, Millener commented: “It is highly likely that the existing and evolving forms of payment will co-exist for many years to come, as different sizes and types of business have differing payment solutions requirements. In the end, it’s probable that all payment solutions will co-exist as they tend to address specific market segments and merchant profiles.“


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2013


Already, market dynamics have produced global mobile payment technology ’hotbeds’. In Japan and the Far East, contactless and NFC payment via smartphones is common. In some African countries, such as Kenya, direct bank account transfers using smartphones have been available for some time.


Chip&PIN is widely adopted in the UK. Although still predominantly dependent on the magnetic stripe, America has rapidly taken up smartphone add-ons such as the Square ’dongle’, which converts mobiles to accept payments.


Millener added: “The UK market stands out because almost all these new and innovative payment solutions exist or are evolving alongside each other. Spire is helping its customers and partners meet the challenge of combining these solutions into a cohesive financial payments strategy.


“Currently, one of the key challenges is ensuring that mobile payment methods meet the exceptionally high security required on traditional payment terminals, but in such a way as to be largely invisible and uninhibited for the user. Consumer confidence in, and therefore usage of, mobile payment methods is expected to increase in line with a greater understanding of how they work and the secure nature of mobile transactions.“


She adds that Path Intelligence has received several encouragements to relocate to the US and other countries, and the UK funding situation (not taxation or regulation) was making it harder to resist such a move.


AN OVERVIEW BY BDO PARTNER PAUL ANTHONY


Our interviews highlight the diverse and innovative nature of technology companies based in the Solent region and the wider UK – each company harnessing the considerable development in mobile device technology to create and enhance their own business models.


None of these innovators are complacent in the development of their technology, and likewise we should not be content that technology businesses will not succumb to the lure of greener fields abroad.


The challenge faced in finding highly-skilled staff is significant for growing companies. We need to ensure that, throughout their journey, there is a support network providing these companies with the best quality advice so the UK is seen as the home of innovation.


There are opportunities for ambitious companies, as Jeff Wilson concludes, both in the UK and abroad.


BDO’s Southampton office has significant experience in advising technology companies.


Details: Paul Anthony 023-8088-1909 paul.anthony@bdo.co.uk


www.businessmag.co.uk


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