VeriFone Systems and the National Payment Card Association have introduced a mobile payment and rewards solution for convenience stores and petroleum retailers that includes smartphone-based payment options at the pump.
Utilizing VeriFone's Smart Fuel Controller and NPCA's mobile payment solution, c-store and gas station operators with VeriFone payment acceptance systems can implement a fixed low-cost mobile payment and rewards program built on existing infrastructure used for merchant branded debit cards, VeriFone said in a news release.
"Consumers are increasingly drawn to rewards-based fuel purchase programs, and they expect to be able to use their mobile phone to complete transactions at the pump," Dan Yienger, senior vice president and general manager of Petroleum for VeriFone, said in the release. "NPCA and VeriFone are showing how easy it is for CSPs to offer mobile payment and reward options to customers that increase loyalty and sales."
VeriFone said its Smart Fuel solutions allow CSPs to offer forecourt pump POS payment without installing new dispensers; the Smart Fuel Controller combines pump and pay-point support into a single unit, the company said, simplifying installation and maintenance and eliminating the need for third-party interface devices to integrate pay-point management with in-store POS systems.
Merchants can develop their own mobile app or apply their brand to a mobile app supplied by NPCA, the release said, enabling customers to pay for purchases and receive loyalty incentives using their smartphones.
"Many consumers today would rather utilize the capabilities of their smartphones versus pulling out their wallets," Danilo Portal, NPCA chief operating officer, said in the release. "Using this solution, retailers can easily and cost-effectively create mobile loyalty programs that attract and reward high-value customers — without having to replace their existing payment infrastructure."
With its debit-based payment programs, NPCA said it can help retailers drive customer loyalty and reduce the cost of payments, because fuel discounts are funded from interchange savings that retailers would otherwise pay to banks.
NCPA handles payment processing using the automated clearing house system to clear debits to cardholder checking accounts and net settle with retailers each day. NCPA said it holds five patents related to the processing and methods for ACH-based decoupled debit and mobile payments.
The companies said their mobile payments solution will be available for beta testing in November.
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