Communication services credit union

Cellular technology lets Vancouver companies add cashless payment capabilities for home deliveries

The traditional home delivery service has almost always required the consumer to have one key resource: cash on-hand.

But a new wireless point-of-sale (POS) pilot program recently launched by the Vancouver City Savings Credit Union for its business members could help change that.

According to Van City, this is the first time a wireless POS product, which is capable of remotely handling credit and debit cards, as well as other complex cash register functions such as coupons, cheques and customer loyalty programs, has been available in British Columbia.

The terminals are also capable of reading chip-embedded cards, widely expected to be the next generation of "smart cards" in Canada.

The new technology will use a variety of cellular mobility networks, depending on the customer's location and the latest cellular digital packet data technology, to support what Van City calls instant, secure data transmission from remote locations, without incurring long- distance charges for the merchant.

The technology, which was developed in co-operation with Richmond, B.C. -based software developer Soft Tracks Enterprises Ltd., is now being used by the General Store, a three-year-old company which offers interactive home shopping and grocery delivery service to customers in the Vancouver area.

According to Van City, the new wireless POS terminals will appeal to businesses operating in remote locations and needing immediate payment from their customers.

In-home trades such as plumbers and carpenters, food and beverage delivery services, seasonal recreation operators (such as ski resorts) and special events co-ordinators are all potential users, the credit union predicts.

The mobile industry has never had the advantage of being able to conduct authorized transactions at the point-of-sale, said Fred Cook, senior manager of technology strategy at Vancouver City Savings Credit Union.

"I think (this technology) is going to bring a lot more commerce to those points for them."

Many industries have been looking for a more secure way of point-of- sale payment and this technology will now allow companies to expand into the virtual marketplace, he said.

According to Cook, the low transaction costs involved in the wireless setting will also make this new technology a good fit for high-value, low-volume business transactions, such as those conducted at a dentist's office.

One of his customers' biggest concerns was giving their credit card information over the Internet, said Glen Easthope, CEO of the General Store.

The company accepts both phoned-in or Internet-placed grocery orders and found that accepting cheques and not-yet-authorized credit card payments often led to problems when trying to collect the money, Easthope said.

"Point-of-sale terminals have basically eliminated that problem," he says, adding that customers no longer need to supply their credit information over the Internet in order for an authorized transaction to take place.

The transaction can be done right at their door, when purchases are delivered.

The devices also make the delivery job much easier, according to Easthope.

Although the General Store still accepts payment by cash or cheque, most customers prefer using credit or debit cards, eliminating the responsibility of collecting the cash, said.

Andersen Consulting projects that within 10 years, eight to 12 per cent of all grocery shopping will be done online or by fax or phone.

Cook believes wireless technology will play a key role in this area as it makes the business transaction much easier.