On the Safe Side

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As humble kiosks continue their technical make-over, their image as simple ‘buy and vend’ units looks set to change forever. A new breed of self-service devices is emerging that are smart, well-connected and represent a powerful brand extension for those prepared to exploit them to the full. But within this dynamic development, which includes NFC and contactless payment security remains a fixed prerequisite for retailers and consumers alike.
 
Traditional vending machines have been around for centuries - the first recorded reference was in the first century for a machine that accepted coins to dispense holy water. While ATMs brought new levels of interaction in the 60s, it wasn’t until 1977 that the first self-service interactive kiosk was developed at the University of Illinois. In 1991, the first commercial kiosk with internet connection was displayed at Comdex; and in the late 90s, we saw full scale roll-outs with the introduction of Kodak’s ubiquitous photo kiosk machines.
 
In the past few years, connection to the internet has become the norm; providing access to customised applications often in conjunction with local devices such as card readers, bar code scanners, receipt and ticket printers, and even biometrics. But far from being at the end of their evolution, we believe it is just the beginning. Significant new developments are falling into place that will change the face of kiosks for ever.
 
Creating a New Look
 
The way user interfaces are defined within the kiosk industry is undergoing a dramatic revolution. While the PC used to be the prime reference point for developers, today it is the mobile or smart device.
 
The proliferation of colour displays and touchscreens has not only created a new consumer expectation; it has also helped drive the cost of enabling technology down. While in the past this type of smart functionality did not constitute a viable commercial investment, today’s competitively priced components means it does.
 
At the same time, wireless connectivity through Wi-Fi, 3G and GPRS is also bringing greater flexibility than traditional LAN connection. Freeing kiosks from hard wire restrictions on location, it also allows internet connection to almost all types of installation. And with 4G on the way, wireless network connections may eventually be faster than the old T1/DSL/ISDN models.
 
Alternatives to Cash
 
But innovation doesn’t stop there. The roll-out of contactless and NFC is around the corner. Most banks and card issuers in the UK and many other parts of Europe are committed to driving mass adoption of contactless payment. Facilitating faster payment channels, contactless offers retailers a financially viable alternative to coin transactions within the kiosk environment. It also affords a low cost route into secure electronic payments without having to invest in expensive EMV compliant devices.While contactless offers an immediate platform for kiosks, it is the future introduction of Near Field Communication (NFC) enabled mobile phones and the realisation of the ‘mobile wallet’ that could stimulate major investment in new kiosk platforms.
 
Value & Revenue
 
NFC is one of the most exciting developments in self-service. Not only does it speed up the payments process, it also allows a two-way dialogue with the consumer. It means loyalty and couponing apps can be carried on the mobile and redeemed at payment without the consumer having to insert coupons or key in voucher codes.
 
NFC also creates an opportunity to create digital footprints for the consumer, allowing them to access added value and highly targeted services at much smarter self-service points.
 
When combined with colour displays, touchscreens, internet access and multimedia capability, not to mention GPRS, NFC represents a seriously intelligent customer touch point. There are endless possibilities – kiosk driven loyalty schemes, electronic digital advertising, kiosk instigated mobile marketing, kiosk ordering and even animated virtual sales assistants.
 
Keeping Customers Safe
 
Whatever technical developments take place within the self-service arena, there is one fixed prerequisite – security. Unattended payment devices need to be extra secure. Protecting cardholders’ data using comprehensive end-to-end encryption and tokenisation solutions will become crucial, particularly as kiosks move to interconnected electronic-based transaction platforms.
 
During 2010, PCI compliance became a prime driver for investment for many retailers. The longevity of kiosk solutions means keeping up-to-date with PCI developments can be a difficult process. A leader in the field of payment security and a participant in the PCI Security Standards Council, VeriFone helps guide retailers through the process.The company provides a secure and effective unattended payment solution and offers support through testing, implementation and ongoing operations.
 
As part of its service VeriFone’s unattended programme also includes training, consulting, professional services and support. Retailers can also use the PAYware Merchant Managed Service to handle transaction processing and manage PCI compliance requirements.As technical, cultural and geographical demands continue to drive the growth of kiosk and unattended payments, retailers looking to exploit evolving platforms face an exciting prospect. One thing is clear, however: as kiosks become more complex, solid vendor partnerships will be crucial in making their deployment and integration a success.