In a move which will prepare it for the widespread introduction of smart card payments, the giant Shoprite retail group is embarking on an initial R1.7 million project to upgrade its point of sale (POS) infrastructure at select Shoprite, Checkers and Hyperama stores.
The payment solution, supplied and implemented by JSE-listed Prism Holdings, allows for the seamless acceptance of new payment tokens such as EMV-standard (Europay, Mastercard, Visa) smart cards as well as existing magnetic stripe debit and credit cards.
Shoprite`s latest integrated smart card-ready solution is the continuation of a programme initiated by the retailer and Prism some 30 months ago for the installation of a secure, versatile, end-to-end payment infrastructure for the group`s 377 supermarkets and more than 9 000 points of sale.
The project included the development of application software, security and system integration services from the Point of Sale checkout through to Prism`s switch and Shoprite`s acquiring banks.
Shoprite has also extended its current payment architecture by installing new card-reading equipment to complement its move to an intelligent PC-based POS system which allows for the adoption of a fully integrated, single entry EFT (electronic funds transfer) solution.
Erica Robertson, sales director Prism Holdings South Africa, says the latest solution reduces a retailer`s risk of fraud and reconciliation mistakes arising from human error.
"In a traditional multi-lane retail environment, the financial point of sale payment terminals are not integrated with the electronic till. This means the cashier must enter the customers` card details twice - once on the financial terminal and again on the till. This process is time-consuming and open to human error, particularly as reconciliation between the two devices is handled manually.
"With the new Shoprite solution, Prism has integrated the stores` retail and payment systems, allowing for automatic reconciliation. The risk of fraud is eliminated because card details are entered only once into a pinpad device ensuring the highest level of PIN encryption security," she explains.
According to Orlando Da Silva, General Manager: Information Technology at Shoprite Checkers, the extension of the group`s payment infrastructure is appropriate for stores in which the majority of customers use payment tokens such as credit and debit cards. It also prepares the group for the widespread adoption of smart card payment tokens.
"To date, the solution has been confined to identified high-card usage stores. As the proportion of card-based payment increases in other stores, we will introduce the integrated solution there too," he adds.
Shoprite also recently introduced Prism`s EasyPay payment service at its Shoprite and Checkers Money Market Kiosks and Hyperama outlets, making it easier and more convenient for the groups` customers to pay utility and other bills.
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