Management
Highlights
A Twist of Payment Technology:
Bringing Smart Retail Business Tool to Life
Soft Space, a technology vendor based in Kuala Lumpur,
chooses to serve the retail business with more innovative
mobile solutions. In the Asian Sesames Awards 2013, it was
short-listed in the category of Software and Applications.
other way round, that is, to improve existing POS payment
terminals so that merchants can perform more efficient
operations while no disturbance will be caused to customers.
According to Yit-Ming, merchants nowadays are rigid to
costly operation when applying the conventional kind of
card payment solution using EDC POS terminals.
“Our key position is mobile
payment solution that enables
physical credit cards working on
any mobile devices, whether it
be an Android phone, an iPhone
or any device in multiple
form-factor that is built with a
smart card reader,” said Yit-Ming
Toh, Co-Founder and Head of
Software
Development
for
Mobile Technology at Soft Space.
First, the traditional EMV kernel is stored in
each of the EDC terminals which is
installed at point-of-sales. Whenever a
card is presented for payment, the
processing is done by using the local
EMV kernel. If, unfortunately, there is a
power failure, data will be easily lost in
the process.
Traditional credit card payment
involves an expensive line rental.
The card authentication process
has to go through a telephone
line, or else there is no other ways for
merchants to accept card payment. If there is any accident
leading to a line disconnection, customers will not be able to
settle payment by cards.
Mobile EMV
The innovation of Soft Space’s solution lies in that by
connecting a smart card reader to a mobile device via the
audio jack of Android devices or Apple 30-pin dock
connector, customers can start processing payment like
other EMV Level 1 compliant POS terminals by inserting an
EMV financial card..
Any change of EMV specifications that require an update to
kernels will bring inconvenience too. Merchants will be
occupied with the hassles of upgrading all EDC terminals one
by one, or having all the terminals replaced.
Accepting EMV cards on mobile devices has made Soft
Space the first company in Asia Pacific to receive (Europay,
MasterCard, Visa) EMVCo Level 2 certification and approval.
Though the company was just founded in March 2012, it has
already concluded several creative projects with Kasikorn
Bank of Thailand, Amway, Muang Thai Life Assurance,
Samsung, Nok Air etc.
Central EMV Processing
The mobile payment solution of Soft Space, however, adopts
a centralized EMV processing approach. Instead of storing
kernel in each terminal, the EMV kernel is placed in the
centralized server.
Leveraged on its mobile payment technology platform, Soft
Space has developed other value added management
tools for merchants to monitor transactions and location
behavior of their customers, such as “Web Management
Console” and “Real-time Dashboard”. The company is also
aware that obtaining information of customers for analysis is
as important as the shopping convenience rendered
through these mobile payment solutions.
If there is any need for kernel update, it can be done
remotely from the server to all local POS terminals. This will
minimize the risk of jeopardising EMV kernel if POS devices
are compromised; not to mention that all transactions
happened at points-of-sales will be safe as they are sent and
stored in a central location.
Improvement to Existing POS Practice
Although quite a number of vendors are moving towards
NFC solutions in order to facilitate customers’ payments using
their own mobile devices, the vision of Soft Space is just the
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Penetrating into New Retail Frontiers
Enhancing Shopping Experience
Acquire More Merchants
Shopping convenience is another customer benefit Soft
Space solution is looking for. In a project called “K-Merchant
on Mobile” launched by Kasikorn Bank, Amway (Thailand)
Limited introduced “I’m Smart” service in Thailand. This
service enables Amway businessmen and customers to
conveniently purchase and sell products and services via
credit card anytime while shopping in Amway stores. The
innovation also provides SMS or e-mail for confirmation of
every transaction. Amway is the first direct selling business in
Thailand that offers this service.
While more efficient merchant operation is achieved with
a better payment terminal, centralized EMV processing
also provides banks with a new tool to penetrate into new
retail frontiers.
The case of Kasikorn Bank of Thailand is a good example.
New mobile EMV solution has supported the bank to acquire
smaller merchants and take care of SME businesses much
easier. These groups of customers were once unable to
afford traditional card payment over EDC POS terminal as the
overall transaction amount is small and they cannot afford
the high monthly rental of terminals and fixed telephone line.
Now, Kasikorn Bank is capable of entertaining these
merchants by offering “Business in the Box”, a packaged
payment solution that include a Samsung Android phone
and a smart card reader.
Risk Management
Apart from payment, Soft Space’s solution has a unique
geo-fencing function, which enables merchants to set
boundaries on an eligible geographic area for transactions.
At the moment, all wireless POS terminals are able to work
anywhere, even outside the country because there is virtually
no blockage of operation as long as the IP address can be
obtained. Geo-fencing is able to grasp the GPS location of
the mobile device and block all transactions outside the
permitted area. Thus, a merchant in one state or province is
unable to sell in another state or province which is not
contracted to him.
“Our solution is to complement the existing usage of EDC
terminals. Kasikorn Bank has over 250,000 terminals in Thailand
and on this part, business is as usual… we just want to make
business possible in areas where EDC terminals do not
currently cover,” explained Yit-Ming.
More Merchant Management Tools
In fact, Soft Space has integrated more
management solutions other than payment
itself. One of them is “Web Management
Console”, which is a portal built for banks
and merchants to view transaction details
and manage devices, transactions and
credit settlements so as to keep track with
daily business activities in a secure manner.
Property Sales & Multi-Level Marketing
YIt-Ming pointed out that mobile EMV is ideal for mobile sales
force, multilevel marketing and property market. In the past,
these industries could not accept card payment on the spot
to conclude a business deal. “When someone is to buy a
property and make the down payment, cheque or cash is
usually the choice … Now they can simply pay by credit card
using the agent’s mobile phone and our smart device.”
Another solution, “Real-Time Dashboard”, provides live
updates of transactional activities on a map as part of Soft
Space's risk management solution.
The live reporting
indicates transaction frequencies as well as transaction
amount, which together makes tracking of normal or
abnormal business activities efficient.
Same scenario happens to insurance sales. Right now, most
of the presentations and proposals are done on tablets
already. Mobile EMV solution enables a salesman to close a
deal right on the spot by accepting credit card payment if he
finds an interested customer. He no longer needs to go
through complicated procedures of filling out cheque form or
credit authorization form any more.
For the first time, both banks and merchants can look at
transactions from a bird’s eye view. Data on transaction
distribution is also available for studying consumer behaviour
of their targeted customer groups, which is essential in smart
retail business.
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“The old selling process in these industries could create tricky
deal to buyers. Sometimes, figures can be easily changed in
the forms. Ours is a smart solution which actually offers good
protection to buyers,” said Yit-Ming.