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5 Reasons ATM Refueling Stations & Electronic Payments are Future of Wireless
Febraury 2003
epaymentsnews.com
Rick Holt, President Aptus Financial
The boom in the electronic payment industry has coincided with the recent prepaid wireless trend. As wireless providers have given customers more and more options, customers have, in turn, become increasingly selective about the plans they commit to. As a result, the wireless industry has seen a dramatic rise in prepaid service and been quick to respond to the emerging needs of the wireless market.
One way the prepaid wireless industry is accommodating its customers’
needs is through ATM Refueling Stations. ATM Refueling Stations
allow prepaid customers to manage their prepaid wireless accounts
through ATM terminals. With wireless access as close by as the nearest
ATM, customers can enjoy convenient, easy service as well as flexible
prepaid plans. And considering that ATMs are nearly everywhere,
wireless carriers will be able to increase customer loyalty, grow
revenue, and lay the groundwork for further expansion of services
and customer base.
But that’s not all. The advanced functionality of ATMs will
not only allow prepaid wireless subscribers to purchase additional
airtime, but provide customers with a host of electronic payment
transfer options. For the credit-challenged, prepaid marks the entry
of a formerly excluded market segment into the world of wireless.
Moreover, a prepaid account can function as a virtual bank account
for the “unbanked.” And that’s only the beginning.
Prepaid carriers are working to develop even greater capacities
for electronic payment transfer through ATM Refueling Stations.
Here are the top five reasons ATM Refueling Stations and electronic
payments are the future of wireless:
1. Prepaid
Creating a wireless account can be an intimidating process for customers. Initiating a new account by telephone takes time and patience. By the time customers are asked for their information, they have been put on hold and routed through a series of operators: an experience that would leave anyone frustrated and annoyed. Now, setting up and managing a wireless account will be as convenient as a stroll to your neighborhood ATM. Moreover, there is no intermediary between the customer and the carrier: no phone call, no operator, and no prerecorded music. Instead, a series of user-friendly prompts cue the customer toward instant prepaid wireless service.
Since ATMs are everywhere, prepaid customers can be, too. Consider
this: 80% of all existing ATMs are upgradeable to function as Prepaid
Refueling Stations at low or no cost. Then factor in another 50,000
plus ATMs deployed by manufacturers each year. That spells convenient
access for customers no matter where they are.
2. Ease
For customers, making sound and informed choices about carriers and plans can require research and an advanced understanding of the wireless world. At Prepaid Refueling Stations, the choices are whittled down to a single screen with user-friendly prompts to guide customers through the process.
Here’s what it looks like: The prepaid wireless customer inserts
his payment card (debit, credit, electronic benefits transfer, etc.)
and is asked to select the type of transaction. He selects “prepaid
wireless,” types in his prepaid cellular phone number, and
designates the amount to be moved to the wireless carrier account.
Once the transaction is validated, payment is transferred from the
customer account to the carrier account and a transaction receipt
is printed.
That’s it. The customer can use his airtime the second the
receipt is printed.
3. Security
The transaction is supported by cutting edge technology that allows two dissimilar systems to communicate. In this case, it lets the ATM network talk to an online wireless service provider. ATM Refueling Systems also employ parallel processing and centralized message management to ensure fast, secure, and fully-integrated transactions. Neither customers nor carriers need to worry that their funds will end up in the wrong place.
4. Flexibility
Probably the biggest obstacle for potential wireless customers is the rigid requirements of traditional wireless accounts. Most plans require a minimum number of minutes, monthly billings, and a contract. For customers who only use their service sporadically, these requisites don’t make sense. That means that retirees, business and leisure travelers, and controlled spenders will opt for no plan, rather than a plan that doesn’t fit their limited wireless needs. Considering the Wall Street Journal’s report that 30% of all wireless subscribers dump their service each year, it’s clear that customers are ready for less rigid wireless plans.
ATM Refueling Stations provide potential customers with immediate
wireless access, without all the baggage. Customers can buy as much
airtime as they want. There are no bills to worry about. And the
airtime begins as soon as the ATM transaction has been processed.
5. Inclusiveness
While ATM Refueling Stations will bring convenient access to customers, it will also bring service to groups who have never had access to wireless before. The typical profile of the prepaid customer is someone without the credit necessary to establish a traditional account, namely those who have not yet established credit and the credit-challenged. There is also a significant and untouched market of working non-citizens, especially in border regions like Florida, Southern California, and Texas. The flexibility of prepaid and the convenience of ATM Refueling Stations will help carriers reach a new market of prepaid wireless customers.
In addition to providing wireless access, the prepaid account basically
functions as a “virtual bank account” for the “unbanked.”
That means the prepaid account can provide a lot more than wireless
service. Airtime—purchased with cash, debit, credit, or even
an electronic benefits transfer card—can be used for bill
payment, money transfer, and other traditional banking activities,
all available from a wireless phone.
With momentum building behind the prepaid trend and the electronic
payment industry rapidly expanding, ATM Refueling Stations are poised
to make a significant impact on the wireless industry. Wireless
carriers will be able to reach a new segment of the market, while
building brand loyalty. Prepaid customers who want fast, immediate
access to airtime will gain convenience, control, and, for some,
first entrance into the world of wireless. And as advanced functionality
of ATMs continues to develop, they will be able to electronically
transfer funds to pay bills, purchase airtime, and more. All in
all, a winning proposition.
Rick Holt is the president and co-founder of Portland-Ore. based
APTUS Financial. APTUS provides and markets technology that provides
banking services to wireless carriers and transaction processors.
The company’s first service is a payment platform that allows
wireless carriers and online service providers to expand into the
prepaid service market via alternative delivery.