So the displays are colorful and graphical. Are they accessible? I don't
know if this technology will catch on in the U.S. but I suspect sooner or
later it will in some form.
>Posted at 6:50 a.m. PDT Monday, August 17, 1998
>------------------------------------------------------------
>
>VeriFone and McDonald's Introduce Electronic Cash Smart Card Solution to
>Consumers; German Program Represents
>
>
>
>Significant Step for Smart Card Global Adoption
>
>
>
>Significant Step for Smart Card Global Adoption
>
>SANTA CLARA, Calif.--(BUSINESS WIRE)--August 17, 1998--VeriFone Inc., the
>leading global provider of secure electronic payment solutions, and
>McDonald's Deutschland Inc., a unit of the world's largest enterprise for
>fast food, Monday announced the implementation of a new smart card payment
>and value loading system using VeriFone smart card solutions at more than
>870 McDonald's restaurants throughout Germany.
>
>This implementation marks the first smart card loading technology deployed
>in a chain store or restaurant in Germany. As the first retail chain to
>implement the smart card loading technology, McDonald's Deutschland -- a
>German unit of McDonald's Corp. -- is setting the trend in Germany and,
>possibly, throughout the world.
>
>With this solution, McDonald's brings convenience and security to millions
>of its customers in Germany who can now download money from their bank
>account onto personal smart cards at McDonald's restaurants and use them
>for many different purchases.
>
>VeriFone provides user-friendly smart card-load terminals that enable the
>new system, called Transaction Automation Loading and Information System
>(TALIS). They are complete with a large, touch-panel and colorful GUI
>display. VeriFone's electronic payment and loading terminals are currently
>being installed at more than 870 McDonald's restaurants across Germany.
>
>A pilot program at 55 restaurants in Germany reported strong usage earlier
>this year. During the first 10 weeks of the trial, there were more than
>30,000 transactions conducted in the McDonald's pilot restaurants. `We
>plan to expand our leadership position through convenience, superior value
>and excellent operations,` said Rolf Kreiner, senior vice president,
>marketing, for McDonald's Deutschland. `The smart card is an accepted means
>for making payment and speeding service, but consumers had limited access
>to reloading terminals. `McDonald's saw an opportunity to deliver
>value to our guests through this technology, while also increasing guest
>loyalty through the TALIS terminal marketing messages and loyalty
>programs,` added Kreiner.
>
>Retailers are evaluating global implementation of smart card payment and
>reloading terminals in countries establishing an infrastructure to accept
>smart card payments. An infrastructure supported by banks, processors and
>merchants is required for an open smart card payment system to be deployed.
>
>Today, France and Austria are in the process of adopting the technology on
>a national basis. Other European countries are also pursuing this
>technology. `The TALIS terminal offers a convenient and user-friendly
>means for not only downloading value onto a smart card, but also serving as
>a multimedia marketing kiosk,` said Robin Abrams, president and chief
>executive officer of VeriFone. `McDonald's is setting the pace by
>leveraging the TALIS terminal's marketing capabilities, while meeting smart
>card users' need to reload value on their smart cards at locations near
>their homes and workplaces. `We expect this implementation will help
>drive smart card acceptance globally as other restaurant and retail chains
>will want to achieve the same speed of service, efficiencies, security and
>marketing advantages McDonald's has today,` Abrams added. The McDonald's
>Smart Card Process
>
>With Germany's support of a smart card payment infrastructure (also known
>as the GeldKarte-System), there have been nearly 40 million smart cards
>distributed since early 1997 to Germans. Today, a McDonald's customer can
>take his or her smart card into the restaurant and slide it into the
>VeriFone SC552 smart card reader to pay for a meal.
>
>If, however, there is no value on the card, the customer may use a TALIS
>terminal, located in McDonald's, to electronically transfer monetary value
>onto the card for making future payments at McDonald's or at the many other
>merchants accepting smart card payment transactions.
>
>While at the value-loading terminal, the customer uses a large, multimedia
>touch screen to walk through the simple process of transferring value onto
>the card. For security, customers are required to enter a PIN (personal
>identification number).
>
>During the brief periods that the terminal is connecting to the customer's
>financial institution, the terminal panel presents marketing messages and,
>potentially, customer loyalty and incentive program offers. Loyalty value
>or points can be stored on the smart card. The terminal has the technical
>capability to communicate via telephone lines, enabling intranet and
>Internet access for easy, centralized management of marketing messaging and
>programs. `We chose to work with VeriFone because of its flexibility
>and technical strength, and ability to meet our complex and timely needs,`
>said Jochen Knaab, project manager at Deutscher Sparkassenverlag -- a
>provider of technical and marketing services to all German savings banks.
> `VeriFone is a great team player, meeting the requirements of not only
>McDonald's but also of the diverse financial institutions involved. At
>first glimpse, it appears to be a highly successful implementation of
>trend-setting technology,` Knaab added. About TALIS terminals
>
>By using hardware and software extensions, TALIS could become a universal,
>multimedia device for loading money on smart cards, ordering goods, etc.
>This creates a wide range of fascinating new opportunities.
>
>The new TALIS terminals overcome the disadvantages inherent in legacy
>systems. In Germany, load terminals have only been available in bank
>lobbies, but not at the point-of-sale (POS).
>
>VeriFone has taken a unique approach in developing easy-to-use terminals
>with an intuitive GUI and a large screen for POS implementation. Because
>these terminals are targeted for stand-alone and POS locations, the
>terminals support remote diagnostics and maintenance, and protect against
>vandalism. The TALIS terminal touch-panel is protected by bulletproof
>glass.
>
>The terminal is resistant against fat, oil acids, dangerous liquids and
>variations in temperature. The TALIS terminal is based on powerful Pentium
>PC hardware running the MS Windows 95 operating system, which is conducive
>to presentation software such as Microsoft PowerPoint for marketing
>messages. TALIS utilizes a bright color display and modules for ISDN,
>Datex-P and analog communications.
>
>By using hardware and software extensions, TALIS can be a multimedia
>system. Sound, video, connection to the Internet and to LAN/WAN enables the
>terminal to be used as a universal device for electronic commerce. Future
>of Smart Cards in the United States `The progress of VeriFone with
>GeldKarte and McDonald's in Germany is good news for merchants, banks and
>consumers in the United States,` said Vernon Keenan, an Internet analyst
>with Keenan Vision Inc. in San Francisco. `Seeing smart card solutions
>in the streets of Frankfurt and Berlin will cause multinational merchants
>and financial institutions based in the United States to more actively
>consider the benefits of adopting a multipurpose smart card solution, which
>includes increased convenience, security and profits,` said Keenan.
>
>The U.S. smart card infrastructure is in its infancy, primarily within
>closed systems. Closed smart card systems have an infrastructure that is
>contained within a single organization, such as a university or
>corporation, which is the only place the card is useful. `The use of
>smart cards in the U.S. will most likely take off when international
>companies like McDonald's import their solutions here, after realizing
>their benefits in successful rollouts in Europe and Asia,` said Bob
>Goodwin, senior vice president of Killen & Associates, a research firm in
>Palo Alto, Calif. About Smart Cards
>
>Because smart cards contain a microprocessor chip, they are capable of
>performing many functions beyond storing money and recording financial
>transactions. Smart cards can be used for multiple applications, minimizing
>the necessity for cash and for carrying many individual membership,
>insurance, health and credit/debit cards.
>
>Smart card applications range from stored value, debit/credit, and loyalty
>programs to identification/access and for personal information storage.
>Industries using smart cards in various applications include financial
>services, telephony, health care/government, transportation/parking,
>corporate/campus and retail/entertainment.
>
>Smart card use for payment at retail operations has been limited globally,
>in part, because of minimal access to loading and payment terminals.
>
>Since 1955, McDonald's has been a trendsetter in international fast-food
>franchising, developing the `Big Mac` and `Happy Meal,` initiating creative
>marketing, and also offering convenience services, such as on-site
>automated teller machines as early as 1988.
>
>McDonald's is the largest, best-known global food service retailer with
>more than 23,500 restaurants in 111 countries on six continents.
>
>VeriFone (www.verifone.com), is a wholly owned subsidiary of
>Hewlett-Packard Co. (NYSE:HWP) and the leading global provider of secure
>electronic payment solutions for financial institutions, merchants and
>consumers. VeriFone has shipped more than 6 million payment systems used in
>more than 100 countries.
>
>NOTE TO EDITORS: VeriFone, the VeriFone logo, and TALIS are either
>registered trademarks or trademarks of VeriFone Inc., in the United States
>and/or other countries. All other company names, brands or products may be
>trademarks or registered trademarks of their respective owners.
>
>--30--WAM/la AJE/la
>
>CONTACT: VeriFone Inc. Dan Toporek, 408/919-5524
> dan--t1verifone.com or Copithorne &
>Bellows Margaret Turbeville, 415/975-2253
>margaret.turbevillecbpr.com
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