Ian Bailey. Photo / Supplied
Just over a week after Eftpos equipment company ProvencoCadmus was placed in receivership, another listed supplier of retail technology, SmartPay, has launched a new service and is talking up its growth prospects.
SmartPay provides transaction processing technology and telecommunications services to retailers and other merchants including taxi companies. Its customers
include larger retail chains such as Mitre 10, Palmers and Harvey Norman, and several thousand smaller retailers.
Yesterday the NZX-listed company told the market it had completed testing on new cost-saving wireless devices it calls "Nicnacs". The devices allow SmartPay's retailer customers to connect existing eftpos terminals to the internet without the need for additional phone lines.
Wireless internet-based retail transaction processing is a cheap and efficient option for many retailers, but its uptake has been hampered by security concerns because it involves transmission of confidential customer information such as credit card details.
SmartPay said yesterday its new Nicnac technology, which involves encrypting information sent over wireless networks, had met the security requirements of and been approved by Paymark, the country's largest processor of electronic transactions.
SmartPay managing director Ian Bailey said the Nicnac technology furthered the company's strategy of generating regular revenue from its merchant customers. It did that by providing a range of broadband-based services including internet-based phone services (VoIP), wi-fi networks accessible to customers, and in-store radio broadcasting with advertising tailored to promoting individual store's specials.
The global recession has made life difficult for electronic payment companies as consumer spending has shrunk and retailers have shied away from spending money on new technology.
ProvencoCadmus fell into receivership after experiencing a slump in demand for the technology it had been selling internationally. SmartPay has also found trading difficult. In June it reported a $3.4 million full-year loss.
Bailey - who founded Cadmus Technology but left the company before its controversial 2007 merger with Provenco to form ProvencoCadmus - joined Paymark in August last year and has spearheaded a major overhaul of the business.
He said yesterday SmartPay's focus on providing customers with a range of broadband-based products set it apart from ProvencoCadmus.
"The structure we're putting in place at SmartPay is based on services, and an ongoing renewable revenue stream. That's paying dividends for us because we're now cashflow positive are we're turning the business around."
