Are Your Retailers Wired?

Your Host:

Jeff Wakefield, Director of Marketing

Vx Solutions Wireless Positioning:

Dave Talach, Director of Product Marketing

Software Support for Wireless Terminals:

Marco Mabante, Vice President Compliance

NURIT 8000 Retail Applications:

Guy Gotlieb, Product Manager

2

Are Your Retailers Wired?

• Understand The Benefits of Wireless Terminals for Retailers• Understand VeriFone Wireless Terminal Positioning• Understand How The Software Products Will Support Wireless• Understand the Nurit 8000 Terminal Features• Understand Nurit 8000 Retail Applications• Be Prepared to Discuss Wireless Applications with Your Customers

• Wireless Solutions Will Be Released During 2007 – More Details Will Follow About Those Solutions

– Provide Marketing With Feedback About What Retailers Want

• There Will Be A Test At The End Of The Presentation

Objectives

3

Agenda

• Vx 570, Vx 610 & Vx 670 Overview • When to Use Which Product• BlueTooth, WiFi, GPRS & CDMA

4

Marketing – Value Proposition

Merchant POS Benefits:

• “Cost saving”– Lower cost communications

– Share access with non-POS devices

– Phone line replacement

– Reduced Total Cost of Ownership

• “Speed of service”– 2-4 second transactions

– Improved customer service

– Eliminate need for offline floor limits

• “Enhanced portability”– Improved coverage

– Lower cost of service

– Lower initial hardware cost

– Increased card acceptance

Business Web/Email

POS

SharedAccess

Mobile POS

Host

Internet

5

Segmentation: When to Sell What

Pay atthe Table

Retail LineBusting

Concessions(in-seatservice)

Taxi/Limo

Home Services(delivery, repair)

Hotel/Event(“line busting”)

Flea Market

Hand Held Transportable

Fixed

Parking Concessions(countertop)

Homeshopping“parties”

Retail MallCarts/Kiosks

General Retail QSR

Mall Stores

6

Fixed: Vx 570 Specifications

VX Solutions Traits

• 32-bit ARM 9 processor (200 MHz)

• PCI approved internal PIN pad

• ATM style user interface

• 14.4kbps high-speed modem or Ethernet/dial

• Triple track MSR

• Fast 18 lines per second printer, clam shell loading

• 8 x 21 graphics display

7

Fixed: Vx 570 Packs a Punch!

• Enhanced performance– Faster processor, Faster printer– Standard high speed modem

• Enhanced security– VeriFone Flexible secure scripts

• New Applications– Larger memory (starts at 6M, option for more)– USB port

• Future proof design– Modular communications and SAMs

• Ethernet, Wireless

• Extra USB port– 3 peripheral ports

• Optional oversize paper roll– Less time spent changing paper rolls

• New look and feel– Larger, white, easy to read display– Improved paper open latch– Enhanced ergonomics on card swipes

8

Transportable: Vx 610 Overview

“Portable Powerhouse”

• Transportable/portable

• Dependable and familiar

• Performance-oriented

– High speed 200 Mhz ARM9 processor

– High speed printer (18 lines / sec)

– Long lasting (Omni 3750) paper roll

– Long lasting Li-Ion battery• 7.2V, 1800mAh

• ~200+ of transactions

– All in one design (telco,charger, serial)

– Breadth of technology• GPRS, CDMA, Wi-Fi, Offline

– Modular future proof design

9

Transportable: Vx 610 Summary

• Reliability, Dependability, & Trust– Quality & Performance

• Long Lasting Battery– Ask battery type & capacity, NOT # of transactions

• High Performance RF (Radio Frequency)– External vs. Internal (Form vs. Function)

• All-in-one design– Integrated Charging, Battery Back-up

• Modularity– Future-Proof Investment

• Easy to Train/Support– Application, Documentation, Knowledge re-use

• Sales/Development for 60+ countriesArgentina, Australia, Bermuda, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, Dominican Republic, Ecuador, Egypt, Finland, France, Greece, Guatemala, Hong Kong, Iceland, Indonesia, Ireland, Israel, Jamaica, Jordan, Kuwait, Latvia, Malaysia, Mexico, Nigeria, New Zealand, Panama, Peru, Philippines, Poland, Puerto Rico, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovakia, South Africa, Sri Lanka, Switzerland, Thailand, Turkey, UK, U.A. Emirates, USA, Venezuela, Yemen

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Unique Selling Propositions:

1. Form Factor (Size)

2. Usability (MaxUI)

3. Spill Resistance

– Secondary:• Verix V O/S• Style & Ergonomics• Advanced Security• POS Integration

– Advanced Security

– Consumer Friendly UI

Handheld: Vx 670 Overview

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Handheld: MAX UI Feature

Industry’s largest user-interface on the smallest form-factor

Large Keypad

Large Display

SMALLEST FORM-FACTOR

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Technical Specifications/Comparison

• ARM 9, 200mhz, Verix V

• 6MB Memory (2 + 4)

• CommServer, UCL, TCP\IP, IPDL …

• VeriCenter Enabled

• LAN / WAN Comm. Options

– WiFi – supports WPA – PSK

– GPRS (Future)

• Vertical MSR, Front Insert Smartcard

• Removable Battery

– 1200 or 1800mAh options

• 128 X 128 Display, White Backlighting

• Backwards Compatibility Mode (BCM)

• ATM Style User Interface, Backlit Keys

• Lightest & Smallest Integrated M-POS

Features Vx670 (SLM) Sagem 930 Ingenico 7700 Nurit 8000

Max UITM Yes No No NoLCD 128 x 128 128 x 64 128 x 64 128 x 128Back-Light White Green Green GreenMemory 6MB 8MB 6MB 6MBBattery (mAh) 1200 & 1800 n/a 1700 1450USB Yes - 2 Yes - 2 No NoBase Yes - Modular Yes - Fixed Yes - Fixed Yes - FixedSpare Battery Yes - Optional No No Yes - BaseSwipe Vertical Slim Vertical Slim Vertical Slim HorizontalWeight 450g 475g 598g 544g

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Wireless Technologies

4G

Bandwidth

WI-FIWIMAX

3G - EDGE/WCDMA/CDMA2000 1x EV

2.5G - GPRS/CDMA2000 1X

2G - GSM/CDMA/TDMA

Bluetooth

100

10

1

0.1

0.01

(Mb/s)

Mobility0.01 0.1 1 10 100(Km)

Metropolitan Area Network (MAN)

Personal Area Network (PAN)

Local Area Network (LAN)

Wide Area Network (WAN)

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Wireless PAN

Wireless LAN

Wireless Metro Area Network

Cellular

0.01 0.1 1.0 10 100 1,000Data Rate (measured in Mbit/sec)

Technology: Strategy

Wireless is part of the Enhanced Communication Portfolio:

• Proven IP native technologies

• Leveraging broadband / wired investment – Consolidation of back-end systems (wireless & wired)

• Extending customer’s portfolio's via application re-use– Better time to market, optimized development resources

Bluetooth Ultrawideband

Wi-Fi 802.11

802.16

2G/2.5G/3G

IP Native

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CommServer

• Insulates applications from specific networking protocols/devices

• Provides diagnostic and network management functions through intuitive user interface

• Optimizes memory footprint through shared libraries

• Allows for concurrent application sessions

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Agenda:• PCCharge Wireless Support • IPCharge Wireless Support• RiTA Wireless Support• RiTA Pass Through Messaging

Software Support for Wireless Terminals

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PCCharge Wireless Support

Processor

Vx 670 WiFi

In-Store Network

WPA WiFi Security

• Sidewalk & Flea Market Sales

• Event Concessions like Golf Tournaments & Fairs

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RiTA Wireless Support

Vx670 GPRS

Vx 670 WiFi

SSL Security

WPA WiFi Security

Corporate Office

Store Location

Delivery Driver

Processor

19

RiTA Pass Through Messaging

Vx670 GPRS

Vx 670 WiFi

SSL Security

WPA WiFi Security

Corporate Office

Store Location

Delivery Driver

PassThroughRouting Table

Accounting

CRM

POS

Delivery

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IPCharge Wireless Support

Vx670 GPRS

Vx 670 WiFi

SSL Security

WPA WiFi Security

PCI DSS Approved

Store Location

Delivery Driver

Processor

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NURIT 8000 Retail Applications

Agenda:

• NURIT 8000 Overview

• Applications and Solution Examples

• Queue Busting

• Summary

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NURIT 8000 Overview

• One of the most successful mobile terminals– Strong US Market-Share & Success

• In the market since the beginning of 2002• Close to 400,000 devices sold worldwide• Implemented in diverse vertical projects

– Mobile merchants– Various retail segments – Lottery – Wholesale delivery– Petrol stations– Taxi services

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What makes NURIT 8000 a success

• Break-through design (2002)

• Large, backlit graphical display

• Touchscreen and stylus

– For drop down menus and forms

– “Virtual keyboard” for text insertion

– “Windows-like” GUI

• Built-in radio for long and short range wireless (GSM/GPRS, CDMA, WiFi)

• Strong rechargeable batteries

• Secure TCP/IP for integration

• External barcode support

• Large removable SD/MMC memory

• Durability

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Examples: Fili Puan Solution

• Complete solution developed by Lipman Turkey for Betek, Turkey’s largest paint store chain

• Includes terminal application, loyalty scheme, back office managed service, and card deployment

• Uses an external barcode reader to scan items

• Over 6000 wireless and desktop terminals supplied

• Significantly contributed to the customer’s revenue growth

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For every purchase, loyalty points are stored in the database

Gift Purchase

LoyaltyPoints

System sends SMS to painter

Painter (cardholder) comes to merchant

Painter’s card and barcode of the paint tub read by the

NURIT 8000

+

Loyalty points saved in back offıce database

Examples: Betek Loyalty & CRM Project

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Betek Loyalty System Work Flow

TCP / IP

IP

Filli BoyaDataBase

Call Center

QUADConcentrator

GSM / GPRSNetwork

GSM OperatorBackbone

SalePoint CheckingStock Checking

MerchantMerchant

GPRS

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Examples: Mobile ECR Application

• Uses the same application as the desktop integrated ECR

• Enables mobile merchants to meet tax regulations (IRS, VAT) in temporary locations such as fairs and bazaars

• Provides extra retail modules:

– Loyalty schemes

– Special offers

• Can use external barcode reader for inventory control applications

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Examples: Stocktaking Application

• Used for counting inventory

• Terminals usually rented for short term (end of fiscal period)

• Barcode used to scan goods

• Use batch upload/downloads with back office

• Used by variety of SMB retailers (clothing, books, etc.)

• Replaces expensive data collection devices

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Examples: Mobile Technician Application

• For technicians and service personal visiting customers

• Main application modules:

– Service calls and customers

– Pricing, spare parts, accessories and insurance

– Inventory

– Payment transactions

– Variety of reports

– Connects to SAP back office via GPRS (for online queries or FTP)

• Barcode used to scan goods

• Used by the largest home appliance provider in Israel

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Connectivity to other systems

• Need to transfer data from NURIT 8000 to a back office system and vice versa

– PLUs, prices, special offering, customer information, etc.

• NOS provides built-in support for

– FTP over TCP/IP – typically twice per working day

– SSL for secure transaction sessions

– HTTP or HTTPS for online queries

• Application controls protocol usage and formats

• Flexible connectivity is easy to implement

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What is Queue Busting?

• A solution designed to reduce customer’s queue time

• Ideal in peak hours or seasons (weekends, holidays, etc.)

• One of the ‘hottest’ trends in mobile retail world

– Technology has dramatically improved in the past few years

– Highly acceptable by customers

– Very good ROI for retailers

• Combines mobile POS and barcode scanner

• In most solutions the actual payment is still handled by the fixed POS

– Fixed POS accepts all types of payment

– Security reasons – general lack of PED approval

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Can we offer Queue Busting solutions?

• In principle, the answer is yes:– We can run POS/ECR applications– We can use barcode– We can connect to other systems– We can provide full payment solutions

• However:– Most solutions run on other OS (mainly Win CE):

• Huge variety of applications already exist

• Easier to provide same UI as the fixed checkout POS

– Large color display is usually needed– Integrated barcode scanner is preferred over external– Ruggedness is needed in some cases

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Nurit 8000 Summary

• NURIT 8000 is highly suitable for a large variety of solutions (retail and others)

• We can offer both payment and non-payment applications

• Important to understand platform’s benefits and limitations

– Good combination of H/W and S/W with competitive pricing

– We should try to avoid ‘overloading’ (we don’t have full PDA capabilities)

• Our solutions are probably more suited to SMB than Tier I

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Payment Card Industry

General PacketRadio Service

WirelessFidelity

MetropolitanArea Network

WiFi Protected Access

Speed of ARM 9 Processor

Number of Nurit8000’s Sold

Vx 670 DisplaySize

Model of Nurit Wireless Terminal

WiFi Specification

One of HottestRetail Trends

Loyalty Solution for Paint Store Chain

Used by Most Queue Busting Solutions

Used by largest Home Appliance Retailer in Israel

Used instead of Data Collection Terminals

MAN

PCI

WiFi

WPA

GPRS

8000

200

128 x 128

802.11

400,000

Mobile Technician

Queue Busting

WIN CE

Stocktaking

Filli Paun

$100

$200

$300

$400

$500

$100

$200

$300

$400

$500

$100

$200

$300

$400

$500

Wireless Jeopardy

Abbreviations Numbers Applications

$0 $100 $300 $600 $1,000 $1,500 $1,600 $1,800 $2,100 $2,500 $3,000 $3,100 $3,300 $3,600 $4,000 $4,500

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Are your retailers wired?

• There are four wireless terminals to choose from

– Vx 570, Vx 610, Vx 670 & nurit 8000

– Each have their strengths and best applications

• Our software products will support wireless terminals

– More information will be available at NRF

• Linebusting is a highly requested retail application

– Learn more about what your customers need