Barclaycard’s ‘smart phone POS’

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Barclaycard says it has taken another step towards making its customers lives simpler by revealing that it is trialling a new mobile payments service, designed to allow retailers to accept card payment through their smart phone. The announcement was made by Dan Salmons, director of payment innovation, at the Mobile World Congress in Barcelona.

Barclaycard has found that a number of small businesses such as plumbers, electricians mobile hairdressers and market traders all understand the benefits of card payment; including security, wide consumer acceptance and guaranteed payment. However many of them do not want the burden of carrying and managing additional equipment.

Barclaycard’s new solution works by utilising the ‘computer powe’ of today’s smart phones along with a small attachable device which will allow businesses to accept ‘Chip and PIN’ card payments from their customers. This is a truly unique solution exploiting the full security and protection that Chip and PIN gives to both the merchant and consumer.

Merchants download an application onto their smart phone which acts as a Virtual Till – allowing them to enter a payment amount or pick from a price list of their products and services. They can also add a discount or apply loyalty features before completing the transaction. The app then interacts with a small Chip & PIN device which enables the customer to enter their card and PIN. The cardholder will have the option to receive their receipt electronically via SMS and/or email.

As well as processing card payments the app will allow the merchant to log any cash or cheque transactions thus helping with end-of-day reporting. The transaction log will also allow them to view transactions over a wider period for example the past week, month or year.

‘We understand how important convenient, widely accepted and guaranteed payment is to small businesses and also how mobile phones play an integral role in their life and their business. Developing a service which brings mobile and electronic card payments together in a simple compact solution illustrates how Barclaycard continues to develop innovations that make our customers lives easier,’ comments Paul Cook, MD, Barclaycard Global Payment Acceptance.

A pilot of the new terminal with selected merchants is expected during the second half of the year, with a launch anticipated towards the end of 2010.