Cash Transactions in a Mobile World. Thursday, March 5th

Transcription

1 Cash Transactions in a Mobile World Thursday, March 5th

2 Today s Presenter Stephen Bergeron V.P. of Global Marketing APG Cash /APGCashDrawer Connect with us:

3 Today s Agenda Overview of APG Why cash is still King Mobility and Mobile POS Mobile Cash Drawer Solutions

4 APG Overview WORLDWIDE SOLUTIONS with GLOBAL SUPPORT

5 Who is APG Cash Drawer? Headquartered in Minneapolis, MN Been in business 36+ years Configuration center in Hilden, Germany for quick response across EMEA. Currently in two US facilities with 76,000 square foot of space, with a high degree of vertical integration We ve sold over 4 million cash drawers Offer a wide range of products (Heavy Duty & Standard Drawers, Flip Drawers, Mobility Solutions) Channel centric sales philosophy (we don t sell direct)

6 Some of our end users

7 There is a Future of Cash Transactions

8 The End of Cash Has Been Debated For Years.

9 Stats on Cash If we : cash use trends About 192,000,000 results (0.17 seconds)

10 Six Reasons Cash Still Wears the Crown 1. It s universal. Cash is accepted everywhere, from big chains to momand-pop shops. 2. It s fast. Credit cards and debit card transactions take more time, in most cases, than having the appropriate amount of cash in hand. 3. It s influential. The immediacy of cash lends itself to negotiating power. Even larger stores prefer cash to avoid fees that are part of most merchant credit card agreements. 4. It s anonymous. People like privacy, and cash affords them that luxury. 5. It s simple. There s no hidden-fee structure. Just a single, simple transaction. 6. It s direct. It s tactile and works in real time.

11 Cash Transactions in Trial Times Around the world, during PERIODS OF POLITICAL UNREST or war, CASH-especially the currency of a STABLE ASSET that can be spirited out of harm s way with relative ease. -John Williams, Federal Reserve Bank, 2012 Report

12 Cash Transactions in Trial Times Cash is a physical form of money which can be used for payment without any technological systems; it is resistant to power outages and disruptions caused by natural disasters -ATMIA, The Global Cash Compendium 2012 Report

13 Cash Transactions in Trial Times Two thirds of Americans are more likely to pay in cash in the immediate aftermath of a major security breach after hearing it. -PYMNTS July 2014: Security Matters: American on EMV Chip Cards

14 Stats on Cash Cash has been around for over 27 centuries Cash withdrawals WORLDWIDE will grow annually by an average of 7.9% between 2011 and 2017 (ATMIA Position Paper: Cash as Public Money, 2014)

15 Total amount of Euro in circulation is ever-growing 9% per year increase in number of euro notes (European Central Brank, Planet Retail 2014 Report)

16 Total amount of Pounds Sterling in circulation is ever-growing

17 Stats on Cash Out of the seven euro banknote denominations, low and medium-value notes are mostly used for day-to-day payments. The Future of Cash in the UK by the UK Payments Council, March 2012

18 Stats on Cash The Future of Cash in the UK by the UK Payments Council, March 2012

19 Global Value Share of Cash by Location/Activity AU: Australia AT: Austria CA: Canada FR: France DE: Germany NL: Netherlands US: United States (Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data. Federal Reserve Bank of Boston, May 2014)

20 Global Perceptions of Cash (Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data. Federal Reserve Bank of Boston, May 2014)

21 Stats on Cash Roughly 80% of all transactions in Germany are conducted in cash. (In the US, it s less than 50%.) And cash is the dominant form of payment there even for large transactions. Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data. Federal Reserve Bank of Boston, May 2014

22 (Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data. Federal Reserve Bank of Boston, May 2014) A Surprising Resilience of Cash in the 21st Century During the transformation of payments from paper to electronics, cash holding and use have not disappeared

23 MasterCard and Visa Report Rise in Global Cash Usage

24 Global Stats on Cash

25 Global Stats on Cash

26 Stats on Cash Networks Report Rise In Cash Volume Both Visa and MasterCard reported growth in cash volume for the same period. In the U.S., for example, MasterCard reported a 4.5 percent increase in cash transactions, to 304 million from 201 million a year earlier, while cash volume rose 5.1 percent, to $41 billion from $39 billion. At Visa, U.S. cash transactions rose 0.8 percent, to 867 million from 860 million, while cash volume rose 4 percent, to $102 billion from $98 billion. - A Cashless Society? Recent Stats Suggest We re Heading The Other Way, 11 February 2014

27 Mobility & Mobile POS

28 Mobile POS in EUROPE is HOT NRF January 2014/15 We had our Mobile solution ready to deploy only we forgot about managing the cash. We want to implement a mobile strategy we just don t know how to handle the cash. And the studies agree

29 Strong Demand for mpos Projected in Europe Still early for mpos, with about 150K users across the EU mpos in Europe is likey to grow rapidly with 3 million users by 2017 Mobile POS will cannibalize traditional POS terminals to some degree (Mobile POS in Europe 2012, First Annapolis Consulting, Ben Brown)

30 Frequency of Mobile Payments

31 Global Mobile Payments Consumer Study

32 Mobile POS Offerings Exist Across Europe

33 VISA Europe s 2014 Global mpos Report Europe is going mobile: Visa Europe surveyed 2,000 small businesses in France, Germany, the U.K., Poland and Italy Data showed that more than 25 percent are planning to invest in mobile POS software within the coming six months. mpos' ease of use is cited as its unique selling point by the majority of small businesses (74% of those in France, 73% in Germany, 63% in the UK and Poland respectively and 59% in Italy). Having an mpos that accepts all major credit cards was another important factor that small and medium-sized businesses wanted to see in the software.

34 VISA Europe s 2014 Global mpos Report "Small businesses have been traditionally reluctant to embrace card payments but across Europe that is changing. mpos is the catalyst for that - it's a solution that dispels many of the convictions previously held and genuinely works for small businesses, if they are accepting payments at their premises, or on the go. - Caroline Drolet, Head of Mobile Point-of-Sale at Visa Europe

35 Mobile POS Case Studies Urban Outfitters 1 st major brand to deploy tablets in large, national chain of stores. Primary mission was to enable mobile POS Apple mpos is Apple s primary POS; clerks use an ipod and card reader More retailers utilizing mpos: Nordstrom, Starbucks, GAP, Home Depot, Old Navy, Lowe s, Disney, Whole Foods, Ann Taylor, Estee Lauder, GYMBOREE, Sephora, Perry Ellis, Hallmark and more.

36 Mobile POS Case Studies - GOALS GOALS Speed up transactions during peak periods (line busting) Untether POS from fixed cash-wrap stations, which enables associates to serve customers anywhere in the store Remove one ore more fixed POS cash-wrap station from each store (replace $5k POS stations with tablet POS that costs $500) Reducing walk outs when lines are long Increase customer loyalty by delivering immediate response

37 Enough with the facts already What can I do about it? Can I still stay in business?

38 Global POS Terminal Market Point-of-Sale (POS) Terminals Market Expected to Reach USD Billion by 2020 Globally (Point-of-Sale (POS) Terminals Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, )

39 Global POS Terminal Market

40 Motorola s Global mpos Report Retail respondents were from North America, UK, France, and Germany

41 Motorola s Global mpos Report

42 Motorola s Global mpos Report

43 Motorola s Global mpos Report

44 Mobile Cash Drawer Solutions

45 MOBILTY What is it? Consumer s smartphone Price Check Place order Product locator Locate a store In-store marketing push Or is it Store s device Handheld Tablet ios, Droid, or Win8 Purpose built app Mobile Wallet Store Credit Cards Scan chip or Bar Code

46 Mobile or Thin Client (Thinbility) Hand Held or Tablet Stationary Tablet

47 So.How Do You Take Cash? Four Examples All Assume: Store owned device Running purpose built application Operating system OS independent

48 Suspend and Retrieve Traditional Stack Suspend Retrieve Assume 1 or 2 Terminals Customer begins the transaction on the floor Completes at the POS terminal

49 IP Addressable Option 1A Ethernet Printer IP addressable Portable device in on the wireless store network IP Printer is on the network Tendering through the device pops the drawer

50 IP Addressable Option 1B Ethernet Drawer Both Wired and Wireless Drawer as a Peer Device Begin transaction on the floor Go to tender Claim the drawer Bio-metrics or scanning Pop the drawer Close transaction

51 IP Addressable Option 2 Bluetooth Interface Tender through a Bluetooth enabled tablet. Proximity is achieved within 1 meter. Wirelessly synchronizes a mobile device and cash drawer within a personal area network.

52 The Hybrid Traditional Stack Configuration Assume 1 or 2 Terminals Multiple Associates w/mobile devices Customer begins the transaction on the floor Assumes remote standalone cash drawer and/or printer

53 With Mobility Comes Security Concerns

54 Loss Prevention Facts Old School Security Original POS security device was the Bell on the Cash Drawer. (Owner was on the shop floor and could turn around) New School Security Today Video Camera s were installed and review after the fact. Tomorrow is here Send a text message or the live video to a smartphone real time. What does this all look like?...

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57 Summary APG have the bases covered for cash transactions of all kinds Cash will be around for a long time Mobility is HOT Cash drawers do not have to be dumb & hard wired

58 World Wide Solutions Other heavy duty and standard cash drawer products are available through APG (various sizes, interfaces, colour options) Check them out by visiting Walter Heyvaert EMEA Business Development Manager Ann Klein Distribution Channel Manager

59 Thank you! Visit us at RBTE 2015, Stand 326!