STRATEGIC PARTNERS
U.S. Cash Exchange wins a cool deal to deploy scrip machines at Baskin Robbins franchises, among other retail sites.by Ann All, editor
March 23, 2000
U.S. Cash Exchange, a subsidiary of Lodi, Calif.-based PayStar Communications Corporation, will deploy scrip terminals at Allied Domecq franchises across the U.S. through a special marketing agreement with Brea, Calif.-based UtiliSource Corp. Harry Martin, chief financial officer and treasurer of PayStar, said that his company already has 1,600 scrip machines in retail locations. He attributes PayStar's success in the scrip market to its strong relationships with merchants. Another of PayStar's divisions distributes payphones, and Martin said reps can sometimes capitalize on those sales calls. "If a store has a payphone but not an ATM, or if the proprietor is paying for an ATM and not getting a commission check, we offer a pretty attractive alternative," he said. Noting that PayStar is currently in negotiations with other retailers, Martin said the Allied Domecq deal marks the beginning of a much larger scrip rollout. "We've just touched the surface of this," he said. Scrip terminals work much like standard ATMs. Customers swipe their ATM card and enter a PIN, then select from dollar amounts pre-determined by the merchant. They receive a scrip coupon from the machine, which they use to pay for items at the cash register and receive any change in cash. The merchant's account is credited electronically for the scrip amount, and the customer pays a small transaction fee for the service. Martin said one of scrip's main advantages over a more traditional ATM is its ability to drive in-store sales. "At locations like fast-food restaurants, research has shown that a proprietor's revenue increases with scrip," he said. Allied Domecq is an international spirits and global food services business, with 8,000 franchises worldwide. In the U.S., the company owns 6,500 franchises, including Baskin-Robbins Ice Cream, Dunkin' Donuts and Togo's sandwich stores. Greg Batts, director of purchasing for Allied Domecq, said, "With more than 71 percent of U.S. households using ATM cards, our franchisees who accept them in their stores have an opportunity to provide additional customer convenience and enhance their store's profitability through increased sales."
