Attracting new customers and expanding revenues are obviously on the top of our minds and wireless innovation can provide new opportunities to achieve these goals. Wireless Point-of-Sale (POS) terminals are a good example of leading edge technology that can make a difference to your business. In the past, wireless was limited to the select group of early adopters who could over-come the market barriers. However, many of these barriers have been eliminated and wireless is now truly a mainstream technology.

Barriers

   Wireless was previously considered an emerging niche, with barriers such as price, coverage, connectivity, and training limiting appeal in the mainstream market. Now these barriers are decreasing as radio transceiver costs have dropped rapidly over the last year while network coverage has continued to improve with true-digital cellular networks such as GPRS\GSM. Connectivity is now via open-standard Internet Protocols (TCP\IP), resulting in devices that are much easier to certify, maintain, and support. While training can still be a challenge, as new technologies take time to become fully understood and adopted, a strong partner committed to wireless can mitigate that challenge with sales and support education. Costs have decreased while functionality and benefits have increased. In the near future, the majority of POS terminals could have built-in wireless capabilities.

Technologies

   The modems used to wirelessly enable POS terminals form two distinct groups. Although this article's focus is on Wide Area Wireless, it is important to note the value of Local Area Wireless. Understanding the key differences between the two is paramount to your success.

• Local Area Wireless
     Technologies in this group include Bluetooth, IrDA, and 802.11 as well as several proprietary technologies from specific manufacturers. These technologies can wirelessly extend an existing landline connectivity point within a room or small building (ex: dialup). The key benefit is being able to leverage existing high-speed connectivity at a low cost, while the key concerns are security and range. Be sure that your partner can address all your questions & concerns.
• Wide Area Wireless
     Technologies under this class include GPRS\GSM, CDMA, Mobitex, DataTAC and CDPD. These networks are based on cellular technologies and are offered to the end user via network carriers. Wide Area Wireless POS terminals are flexible in their deployment and the only restriction is coverage. Since such terminals do not require existing landline connectivity, they can connect directly to payment processors via the wireless cellular network.

Identifying Opportunities (Features & Benefits)

   With a strong grasp of wireless and strong partnerships, you will be able to penetrate new opportunities while driving depth into existing accounts. Wide Area Wireless offers some very distinct advantages. It is important to understand these basic features and use them to your advantage.

• Mobility ­ For merchants that operate in temporary venues (such as flea markets), or those who are constantly on the move (such as delivery services), wireless POS can improve sales and reduce fraud by being able to accept and authorize transactions at the customer's location.
• Speed ­ typical 2-10 second transaction times are comparable to high-speed connections at a cost comparable to dial-up. This is ideal for use in any situation, however of greatest interest in QSR.
• Reliability ­ Given proper coverage, a wireless POS terminal is extremely reliable since they are not prone to corrupt handshakes and numerous re-attempts unlike dial-up terminals.
• Efficient Transaction Costs ­ GPRS, Mobitex and DataTAC are all packet-switched technologies, which means that transactions are billed per data usage (per transaction) not per minute. Wireless only costs money when merchants make money.
• Convenience ­ Wireless is not only limited to mobile applications, as it provides a valid option to dial-up. It can eliminate the need for a second phone line, while also eliminating the need for costly high-speed installation costs.

Requirements/Check List

   Adopting wireless, or at least investigating, is a solid move toward ensuring your competitive edge in these highly competitive times. In moving forward it's important to understand your customer's requirements and compare this with a checklist. There are some key requirements that should be part of any good ISO's checklist.

• Power Consumption ­ Understand the manufacturer's specifications, and see whether it meets your customer's usage profile. Devices can vary in quality of battery and quality of modem, and hence terminals can vary greatly in the number of transactions that can be performed before having to recharge.
• Coverage (Receiver Sensitivity) ­ Coverage will determine where a device can be operated. Different technologies have unique coverage maps, while different modems have various levels of receiver sensitivity (quality of receiver).
• Airtime (Return On Investment) ­ Compare the merchant's data/transaction usage profile against the costs to see when and where it's compelling to sell wireless.
• Support ­ Wireless is new to many customers, and it's important to have a partner who understands the wireless industry and the technology. Only then can you be sure that they can provide the level of support required to ensure success.
• Training ­ Understanding wireless is key for success. Look for a partner who can offer quality resources to help you and your customers better understand wireless. Furthermore, terminals should run the same applications as counter-top terminals, as a measure to reduce the amount of training required to support and operate a wireless terminal.

Look Forward

   Wireless has already entered mainstream markets in other industries, as evident by the rise of the cell phone and other wireless devices. The technology is already here; it's just waiting for people to understand, adopt, and embrace. In the near future, all POS terminals could be wireless, enabling e-wallets and interactions with cell-phones, PDAs, and vending machines. I personally look forward to this day, but for now lets keep focused on the very attainable opportunities in front of us today!

Other Articles of Interest:
   (Refer to "Connecitivty 101", March 2002)
   (Refer to "Find Value, Avoid Hype", June, 2001)