Wireless M2M Communication and Retail

Wireless M2M Communication and Retail

Retail is one of the first sectors in Europe that has seen some significant breakthroughs for wireless M2M communication technology in certain application areas. Wireless POS terminals are widely used to enable card payments in businesses where mobility is required and modern on street parking management solutions rely on information transferred over wireless networks. The vending industry is expected to become the next segment where remote management systems enabled by mobile data communication will be deployed on a large scale from 2005 and onwards.
During the period 2005 to 2009, the total number of wireless data connections used for retail applications in Europe can be expected to rise from less than 1 million to around 3 million.
Growth could however be many times higher if the mobile industry is able to take advantage of the ongoing migration to EMV in the card payments industry. As European merchants prepare to replace well over 10 million POS terminals to meet the new security standard, the mobile industry has a unique opportunity to initiate a shift from landline to wireless connections as primary means of communication for card payment systems. Such a development will however require tailored solutions that combine inexpensive, reliable terminals with secure high performance communication services.
Remote management and reporting systems has a great potential to offer significant benefits for the vending industry. Digital technology initiated a thorough transformation of the retail industry during the 1980s, when chain stores began to systematically collect vast quantities of data about customer buying behaviour. By knowing exactly what is sold, when and where, retailers can today continuously adapt their businesses to their customer’s changing needs and behaviour. Remote management solutions with wireless data network connectivity can offer vending industry players access to the same kind of detailed online information about their points of sales. Product suppliers and operators can gain more efficient control of cash, sales, stock, route planning, operations, brand and marketing data. Based on information gathered from machines in the field they are able to optimise their businesses and achieve both increased sales and improved efficiency.
Parking machines and to a lesser extent also ticketing machines have been areas where wireless M2M technology has been adopted relatively early. A high proportion of the pay and display machines shipped on the European market are equipped for wireless network connectivity. Data communication both facilitates centralised management solutions and enables card payments at remote locations. Though interesting in the short term, the addressable market is however not large enough to generate any significant growth in the future. Adoption is also slowed by long equipment life cycles.
There are already numerous cases where wireless M2M solutions have been successfully implemented for retail applications. All major POS terminal manufacturers offer mobile terminals for GSM or GPRS networks and VeriFone is one of the first to partner with a wireless data service provider, Wyless, to install SIMs in devices at the factory. Major consumer brands and vending machine operators such as Nestlé, Unilever and Selecta are working with service providers such as BT Redcare and Vianet to implement remote management for vending machines at a large scale. The leading parking solution provider Parkeon offers wireless network connectivity as a standard feature for its entire range of pay and display machines for on street parking.

Wireless M2M Communication and Retail