SPICED Card Technology Helps Payment Schemes Protect Interchange Fees

SPICED Card Technology Helps Payment Schemes Protect Interchange Fees

November 26, 2007

    SINGAPORE, Nov. 26 /Xinhua-PRNewswire/ -- Welcome
Real-time today released a new card applet, called SPICED,
designed to make payment scheme brands more attractive and
useful to merchants, so that brand  acceptance  and usage
are encouraged and pressure on interchange fees is reduced.

  
    When a payment brand offers valuable features to
merchants, not offered by other brands, there is a higher
chance that merchants will encourage customers to use that
brand over others, interchange fees are easier to justify,
and the brand becomes more attractive to banks keen on
receiving more interchange. 

    When a payment scheme is SPICED, merchants can use data
stored inside the cards to deliver targeted messages and
promotional offers at the POS, at very low cost. For
example, a coffee chain can recognize an infrequent
customer that has not been to the chain in over 30 days,
and print an offer at the bottom of the card receipt
encouraging the customer to come back soon. Alternatively,
merchants can avoid giving high value promotions to all
customers by delivering their most valuable coupons after a
certain number of visits or cumulative spending. 

    "It is difficult and expensive for merchants to
achieve similar results through data mining and direct
marketing, whereas with SPICED, the feature is built into
the payment transaction and the offer is simply printed at
the bottom of the card receipt," said Sebastien
Guillaud, Welcome's CEO. "There is no need for
merchants to operate a separate database, perform
complicated and sensitive integration with bank systems, or
use equipment other than traditional payment terminals.
Merchants simply accept card brands with the SPICED applet
built-in and ask their acquirer to set up the campaigns of
their choice." 

    About the SPICED card applet 

    The SPICED card applet supports a variety of promotions
designed to help merchants attract and excite occasional
customers: 
 
    -- Competitive Shopper Messages/Coupons. Merchants can
avoid losing
       customers to the competition by recognizing
occasional customers
       that are probably shopping elsewhere and instantly
offering an
       incentive on the next purchase. For example, a
petrol retailer
       can recognize an infrequent customer that has not
been to the
       chain in over 30 days, and instantly print an offer
encouraging
       the customer to come back the next week. 
    -- Smart Sampling Offers. Merchants can encourage
customers to try
       higher margin products and services by giving a
different
       surprise sample at each visit. 
    -- Game Programs. Merchants can avoid the cost and
trouble of
       complicated loyalty programmes and build continuity
through
       games based on cumulative spending or number of
visits. 
 
    SPICED also supports promotions designed to help
merchants reward frequent shoppers: 

    -- Frequent Shopper Coupons. Merchants can avoid giving
high value
       promotions to all customers by delivering their most
valuable
       coupons after a certain number of visits or
cumulative spending.
       For example, rather than offering a "Buy 1 meal
and get 1 free"
       promotion to all customers, a fast food chain can
give the offer
       only to customers that have eaten there 3 times in
the last
       month, printed at the bottom of the customer's
normal credit or
       debit card receipt. 
    -- VIP Service Vouchers. Merchants can avoid loss of
margins when
       offering high value services by identifying their
best customers
       and surprising them with VIP treatment. 
 
    The SPICED card applet is part of Welcome's XLS payment
technology which is used by banks in 21 countries across the
globe. Banks already using XLS can now upgrade their POS
terminals to accept payment scheme brands equipped with the
SPICED applet, and make their acquiring services even more
valuable to merchants. 
 
    About Welcome Real-time 

    Welcome Real-time ( http://www.welcome-rt.com ) is the
leader in card marketing enhancements that create added
value at the moment of payment. Welcome Real-time adds
value to the traditional payment transaction through an
enhanced payment experience that provides benefits to
cardholders, retailers and financial institutions.
Welcome's technology drives credit and debit card programs
in 21 countries across the globe and has received industry
awards such as the "ROI of the Year Award" by The
Banker magazine (2004) and the "Frost & Sullivan
Industry Innovation & Advancement Leadership
Award" (2006). Welcome Real-time is headquartered in
Aix-en-Provence, France, with offices and R&D
facilities in Singapore, London, Milan, Madrid, Miami,
Shanghai and Sao Paulo. 




    For more information, please contact:

     Wong Wan Ling 
     Tel:   [phone] 
     Email: [e-mail]