Payer’s Personal Cabinet for Payment Terminals is an Innovation in the Payment Acceptance Technology

PLUS Journal
November 2008

Introduction

Self-service payment kiosks have just entered everyday life, however it is now difficult to imagine problems people faced when they wanted to top up their mobile phone account or, say pay for the Internet. Currently payment kiosks installed in only one step from each other operate 24 hours a day, so the issue of making payment for various services has been largely simplified.

Along with rapid growth of the number of self-service kiosks there is a fast development of new software related solutions allowing for new functionality that has not been earlier used in the payment acceptance market. In this article I would like to discuss one of such innovations. This novelty is payer’s personal cabinet on the payment terminal. This option first appeared on payment terminals less than a year ago pioneered by QIWI network. Nowadays some other payment systems have launched (or in the process of launching) similar functionality. Payer’s personal cabinet with some additional options is being tested in eKassir system. In the near future we will offer this functionality to our customers.

What does Payer’s Personal Cabinet for Self–Service Kiosk Mean?

Payer’s personal cabinet on self service kiosk enables the payment system to identify the payer and individually customize payment terminal interface for each payer, which makes payment for various services much more convenient.

It looks like following.

Payer Registration

Any payment terminal having an option of payer’s personal cabinet enables payer registration in the system. For instance, payer registration on QIWI network proceeds as follows. A payer enters his mobile phone number and the system afterwards sends to this number an SMS containing the password. In the future the mobile phone number and password serve to access the system.

Ekassir system envisages a wider range of methods of identification and authentication. Identification can be implemented using the method described above with mobile phone number or with the help of the card (either magnetic or with barcode), simply by login and password and even, if necessary, with the help of biometrics data (fingerprint, for example). Payer registration in payer’s personal cabinet can be done with the help of SMS sent to the entered mobile phone number or manually by the payment system (bank) employee after necessary documents are verified.

What are the Advantages of Using Payer’s Personal Cabinet?

Using payer’s personal cabinet allows for additional convenience when making payment (and what is more important) additional payment options.

Additional Conveniences in Conducting Payments through Terminals

First of all, you can configure customized terminal menu. Individuals normally have a limited number of services they pay for on a continuous basis. These services (for example, top up of mobile phone, Internet accounts or utilities payments) may be included into “my favorites” list and paid for without entering any additional data just by picking up the necessary service (“My Mobile Phone” for example).

The menu on the terminal may be simplified if a particular region is selected. Moscow citizen very rarely pays for services rendered in Vladivostok, but an extensive range of services on the menu may be confusing and at times complicates the process of finding the necessary service provider.

You can also set up automatic top up of one of the service accounts on “my favorites” list, if you like. The funds are then debited from the payer’s “mobile wallet”.

There is an option to configure individual terminal interface, which is not important but quite enjoyable.

New Options Allowed by Payer’s Personal Cabinet

It is the new options which payer’s personal cabinet provides that makes this innovation most attractive.

First – the expanded range of services to be paid for. The process of a payer getting access to the payer’s personal cabinet on the terminal is in fact the process of payer identification executed by payment system or bank. Therefore, payer’s personal cabinet enables provisioning additional payment services, which require payer identity like credit repayment, money transfers, payments for education, fine payments and many others. Acceptance of such payments may be organized not only through terminals belonging to the bank but also through payment system intermediaries (dealers), i.e. other legal entities. It is arguable if such method of payment acceptance complies with the Russian law (Law 115 of RF) but in practice such method of credit repayment has already been successfully implemented in some payment systems.

«Mobile Wallet». It is a very important option. Every user of payer’s personal cabinet gets a “mobile wallet”. In essence it is a personal account in the system, which can be topped up through payment terminal on one hand and debited to pay for different services on the other. Mobile wallet apart from other can solve “change” payout problem of the terminal. It is especially important when the exact amount of payment is required (for instance, in some utilities payments) or there is no point in overpaying (for instance, in payment of a fine).

Payments History. This option allows to look up all account transactions, mobile wallet top ups, service payments and also payment status within the system.

Payments on the Internet. All services which are available in terminal payer’s personal cabinet (except top up of mobile wallet) can also be accessible through bank (payment system) website. Having replenished your mobile wallet through the terminal you can then while at home conduct necessary payments for the services by the Internet. The user interface in payer’s personal cabinet and on website may be nearly identical for convenience and better understanding.

Additional options. Such additional options include: purchasing of content for mobile phones, IP telephony allowing to make almost free calls throughout Russia and worldwide without using a computer, SMS notification and some other services. But these are only additional options to the main services.

Web Banking and Payer’s Personal Cabinet

If we look at all the available options of payer’s personal cabinet it is clear that with it we have a full capacity Web banking. It includes nearly all available web banking options: payer identification (e.g. by login and password) payer personal account (mobile wallet), payments effected based on envisaged payment details (payment for services) and viewing electronic statements with payment status (debit and credit).

There is also a network of terminals (of bank and its intermediaries), which enables easy and convenient way to top up an account within the system. This is a very important factor because no matter how convenient Internet banking system for private customers is all of its advantages may be disregarded if convenient ways to top up customer’s account are missing. Combination of convenient methods of account top up and use creates value and provides a powerful tool in Web banking promotion and attraction of current and new bank customers.

Payer’s Personal Cabinet - Now What?

Payer’s personal cabinet option has only recently appeared on payment terminal networks, so it is very young, just like entire terminal payment acceptance business. Few customers so far use this option but its development is extremely viable for payment systems (banks). The following options of automated bank operations can be implemented in the future with the help of this functionality:

This technology may become an innovative tool in promoting different bank products and attracting new bank private customers. In fact, a customer having registered in the system may place a deposit or loan request or get another bank service, all through self-service terminal. The number of bank retail points (and customer’s attraction) may thus increase enormously.

One can easily adjust the technology applied in payer’s personal cabinet for use by bank operators working with individuals as well as to bank ATM machines network. This will ensure timely and superior customer service and provide competitive advantages over other banks.

Payer’s personal cabinet may become a powerful marketing tool of making special offers to various target groups when bank services are being promoted. Such promotion can be conducted not only with bank special offers but also with offers of other retailers or companies working with individuals.

Various customer loyalty programs, bonus schemes and so on can be implemented based on this technology, which facilitates customer retention.

As already mentioned payer’s personal cabinet can give a powerful spur to using web banking technology among bank customers.

Conclusion

In my opinion, the technology described in this article is very promising and provides a multitude of various options. Every client can find useful options of this technology depending on the project. But using them to the best advantage is quite challenging.

Our Company having expertise in implementing projects for payment systems and banks is ready to deliver various solutions designed to fit the purpose and specifics of the project. We will also be happy to share our experience, provide advice and conduct training of Client’s employees.