Are Your Retailers Wired?

Your Host: Jeff Wakefield, Director of Marketing V x 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

Are Your Retailers Wired?

Objectives

• 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 2

Agenda

• V x 570, V x 610 & V x 670 Overview • When to Use Which Product • BlueTooth, WiFi, GPRS & CDMA 3

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 POS

Shared Access

Business Web/Email Internet Host Mobile POS 4

Segmentation: When to Sell What

Hand Held

Pay at the Table Retail Line Busting Concessions (in-seat service) Taxi/Limo Home Services (delivery, repair) Hotel/Event (“line busting”) Flea Market Parking Home shopping “parties” Retail Mall Carts/Kiosks Concessions (countertop)

Transportable

General Retail Mall Stores QSR

Fixed

5

Fixed: V

x

570 Specifications

V X 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 6

Fixed: V

x

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 7

Transportable: V

x

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 8

Transportable: V

x

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+ countries Argentina, 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 9

Handheld: V

x

670 Overview

Unique Selling Propositions:

1.

2.

3.

Form Factor (Size) Usability (MaxUI) Spill Resistance – – –

Secondary:

• • • •

Verix V O/S Style & Ergonomics Advanced Security POS Integration Advanced Security Consumer Friendly UI

10

Handheld: MAX UI Feature

Industry’s largest user-interface on the smallest form-factor Large Display SMALLEST FORM-FACTOR Large Keypad

11

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 UI TM LCD Back-Light Memory Swipe Weight Yes 128 x 128 White 6MB Battery (mAh) USB 1200 & 1800 Yes - 2 Base Spare Battery Yes - Modular Yes - Optional No 128 x 64 Green 8MB n/a Yes - 2 Yes - Fixed No Vertical Slim Vertical Slim 450g 475g No 128 x 64 Green 6MB 1700 No Yes - Fixed No Vertical Slim 598g No 128 x 128 Green 6MB 1450 No Yes - Fixed Yes - Base Horizontal 544g 12

Wireless Technologies

Bandwidth (Mb/s) Local Area Network (LAN) 100 WIMAX 10 WI-FI 1 0.1

Bluetooth 0.01

Metropolitan Area Network (MAN) 3G - EDGE/WCDMA/CDMA2000 1x EV 2.5G - GPRS/CDMA2000 1X 2G - GSM/CDMA/TDMA 4G Wide Area Network (WAN) Personal Area Network (PAN) 0.01

0.1

1 10 100 Mobility (Km)

13

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

Wireless PAN Wireless LAN Wireless Metro Area Network Cellular 0.01

Bluetooth Wi-Fi 802.11

Ultrawideband 802.16

2G/2.5G/3G 0.1

1.0

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

14

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 15

Software Support for Wireless Terminals

Agenda:

• PCCharge Wireless Support • IPCharge Wireless Support • RiTA Wireless Support • RiTA Pass Through Messaging 16

PCCharge Wireless Support

In-Store Network

WPA WiFi Security

V x 670 WiFi

• Sidewalk & Flea Market Sales • Event Concessions like Golf Tournaments & Fairs

Processor

17

RiTA Wireless Support

SSL Security

Delivery Driver

Vx670 GPRS Store Location

Corporate Office

Processor V x 670 WiFi

WPA WiFi Security

18

RiTA Pass Through Messaging

SSL Security

Delivery Driver Corporate Office

Vx670 GPRS Store Location Accounting CRM POS Delivery V x 670 WiFi

WPA WiFi Security

Pass Through Routing Table

19

IPCharge Wireless Support

SSL Security

Delivery Driver PCI DSS Approved

Vx670 GPRS Store Location Processor V x 670 WiFi

WPA WiFi Security

20

NURIT 8000 Retail Applications Agenda:

• NURIT 8000 Overview • Applications and Solution Examples • Queue Busting • Summary 21

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 22

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 23

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 24

Examples: Betek Loyalty & CRM Project

+ 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

For every purchase, loyalty points are stored in the database Gift Purchase Loyalty Points System sends SMS to painter

25

Betek Loyalty System Work Flow

Merchant GPRS Sale Point Checking Stock Checking GSM / GPRS Network

GSM Operator Backbone

TCP / IP QUAD Concentrator IP Call Center Filli Boya DataBase

26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

Wireless Jeopardy

Abbreviations

Metropolitan

MAN

Payment Card $200 Wireless $300 WiFi Protected $400 General Packet $500

Numbers

Model of Nurit

8000

Speed of ARM $200 Vx 670 Display $300 WiFi $400 Number of Nurit $500

$ $ $

0

Applications

Used by largest Home $100 One of Hottest $200 Used by Most Queue $300 Used instead of Data $400 Loyalty Solution for $500 34

Are your retailers wired?

• There are four wireless terminals to choose from – V x 570, V x 610, V x 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 35