STRATEGIC PARTNERS
February 25, 2002
IRVINE, Calif.-- SIMS Communications Inc. has released Version 2.0 of its POS terminal software. One upgrade of interest to retailers: it allows a consumer to indicate the value of phone time being purchased on a SIMS prepaid phone card and, by swiping the card through the terminal, activates the card's PIN using data encryption technology for security.
"If the retailer has a SIMS POS terminal, we can provide the store phone cards with no up-front costs, no product theft liability and no payment requirement until after the sale is made," said Mark E. Bennett, SIMS president and CEO.
Prepaid phone cards are typically stocked "live" with usable PINs and sold under normal credit terms at fixed prices, requiring multiple SKUs. This method creates problems for many retailers, particularly single-lane stores like c-stores, where a large number of cards are sold. Theft is a major concern because of the cards' small size and high value. Also, some retailers are wary of paying for cards in advance while uncertain about customer demand.
SIMS ships inactive cards with "dead" PINs under a single SKU, and with no up-front billing. After the phone card is swiped through the terminal, the consumer enters the purchase amount and it is remotely activated by SIMS' phone card system. The wholesale price is then paid to SIMS through electronic funds transfer after the retailer has been paid for the sale.
"With the ability to have the user enter data such as sales amount, and with its high-security features, the terminal can be used with practically any prepaid product or service. The same card can be
used to purchase gasoline, for example," Bennett said. "It can also be used for sales promotion. A phone card PIN can be securely downloaded in real-time to the terminal as a reward in a customer loyalty program or as a sales promotion bonus,"
