A test of web-based cell phone payment at the point of sale
A Schlotzsky’s Deli franchise in Overland Park, KS, is testing a web-based system that allows customers to pay with their cell phones. So far, the system is working so well that the franchisee plans to expand it to other locations. “It’s the wave of the future,” says co-owner Geri Restivo.
The payment system is based on Wirca Inc.’s PocketChange mobile payment processing technology on top of an Aloha Technologies Inc. web-based point-of-sale platform. After a week of testing, the payment process is proving popular with customers, says Bart Hastert, Restivo’s brother and president of their franchise company, BCT&G Inc. “I work the cash register and always ask customers how they like things,” Hastert says. “Everybody’s been really positive about PocketChange because of the ease of use.”
Wirca is subsidizing BCT&G’s payment processing fees during the test, but the fees Wirca is planning to charge are a little less than what BCT&G pays for conventional Visa or MasterCard processing fees, Hastert says.
Hastert plans to make the PocketChange system available in a second Schlotzsky’s he operates in nearby Olathe, KS. That will require implementing a web-based POS system in the Olathe store at a cost of about $23,000 for four POS terminals, but Hastert says he figures the investment is worth it to keep up with new ways of serving customers. “It’s a significant investment, but we have to keep up with technology,” he says. “The easier we can make it for customers the better.”
Customers go to Wirca.com to create a PocketChange account that they fund with money transferred electronically from credit card or checking accounts. While they wait in line to place their orders, customers use their cell phones to check the balance of their PocketChange accounts. As long as there are funds available, they will get a 3-digit authorization code to give to the sales clerk at the counter. The clerk then enters the code into the POS terminal, which is constantly connected over a high-bandwidth line to Wirca’s web-based server. Within 10 seconds the POS terminal gets an authorization, Hastert says.
Howard Gerson, president of Wirca, which is also based in Overland Park, says he expects to establish partnerships with other payment processing companies as well as other POS system manufacturers to support a broader rollout of the PocketChange system in fast-food restaurants, table-service restaurants and vending machines. He adds that implementation of the PocketChange system can be done remotely by Wirca. “A chain with 1,000 stores could be up overnight with a remote installation,” he says.
Gerson adds that the PocketChange system can work with virtually any make of cell phone.
Hastert says the Schlotzsky’s Inc. franchising company, which has nearly 700 locations, is closely watching his PocketChange test program. “They’re interested in hearing how we do,” he says.
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