Dec 02, 2022As a growing number of shoppers are demanding touch-free and fast payment transactions while they are in stores, Honeywell has commercially released its Smart Pay solution, aimed at addressing that challenge. Honeywell says its mobile payment method, offered with payment solutions company Amadis, provides store associates with a means of accepting customers' payments via a single mobile device, while reduce queueing at fixed points of sale (POS).
Karen Bomber
The company first made the Smart Pay solution available earlier this year, during January's National Retail Federation (NRF) Big Show event, and the technology has since been adopted by several large-scale retailers. Now, Honeywell says it can provide the system to any retailer or merchant that seeks a more frictionless payment method capable of extending the point of sale to wherever customers are located.
The solution, according to Honeywell, allows companies to transform existing Honeywell mobile computers into payment terminals integrated with their existing POS systems, and enabling secure transactions. Businesses can use the device's built-in Near Field Communication (NFC) tag reader to capture transaction information from a credit or debit card, or from a mobile phone. Any Honeywell mobile device running the company's Mobility Edge software can be used in this way.
Reducing Mobile Payment Friction
The use of contactless payment and tap-to-pay technology has been expanding, says Karen Bomber, Honeywell's VP of global marketing, and retailers have been seeking to provide customers with contactless and frictionless experiences at the point of sale. The demand for contactless transactions, she explains, began well before the COVID-19 pandemic, "but it has accelerated at lightning speed" because shoppers prefer to pay for purchases by tapping cards or phones without touching devices.
There is also a demand for frictionless purchasing, Bomber adds. Customers often do not have the time or patience to stand in a traditional queue for only one or two items. As a result, many retailers have led the drive to offering frictionless experiences with mobile payment options. But while such transactions might be frictionless for consumers, she says, "The store associate oftentimes is carrying something big and bulky, or perhaps it's a mobile device, plus a payment device, plus some type of sled that holds it together." Such solutions can be cumbersome and expensive, Bomber notes, "So while it could have been frictionless for the consumer, it was great friction for the store associate."
Honeywell already provides its handheld mobile computers to companies in the retail, travel and leisure spaces, so it was well-positioned to offer a solution using a single device. The company sells handheld mobile computers, barcode scanners and mobile printers, for instance. The Smart Pay system uses the NFC capability on devices to communicate with a contactless credit card or a mobile phone with an electronic wallet, thus eliminating the need for bulky card readers and other hardware. The software, designed in collaboration with Amadis, is compatible with most merchants' existing banking, POS, and acquirer or processor partners.
How the System Works
In a store that uses Smart Pay, customers would select products they wish to purchase, then approach an employee or work with an associate who has already been helping them. The worker or customer would tap the card or phone against the Honeywell mobile device, which has a built-in 13.56 MHz frequency reader and is compliant with the ISO 14443 standard. The device's reader captures the card's unique ID number, and Amadis software completes the integration with the back-end financial service, such as Visa, MasterCard or Discover, to conduct the payment transaction.
The device displays the payment information and can forward a receipt to the customer via e-mail or SMS text message, or it can print a paper receipt. If a bank or store requires a signature, the device can accept that signature on the touchpad. The same device can continue to be used for other functions as well, which could include inventory lookup, price checking or communications, both inside and outside the store. "Now it also accepts payment without any other device sled attached," Bomber states, "or without telling the customer that they need to go stand in line at the front of the store."
The Smart Pay system does not require a merchant to change existing POS solution or processor relationships, Bomber notes. Rather, it can simply connect mobile computers to the existing payment back end, thereby expanding the merchant's service and payment acceptance capacity, allowing every employee to become a point of sale. Honeywell is targeting the solution to existing customers, as well as to new customers seeking to make purchasing easier within their physical stores. "We are looking to capitalize on our existing installation footprint," she says, "as well as attract additional retailers or other merchants."
Enabling New Payment Applications
Customers around the world have been using Honeywell mobile devices for years, the company reports, and Smart Pay is available globally. The application can be used far beyond traditional stores as well, according to Honeywell, opening up new payment opportunities. For instance, a transportation driver, such as a bus company, could accept payments wherever passengers come onboard, while a merchant at a sporting event could create a temporary POS terminal.
In addition, Smart Pay gives courier services or drivers the capability to conduct contactless transactions at a customer's home or place of business. "The concept of using a mobile device for payment is not a new idea," Bomber says, adding that Honeywell's offering represents an easier single-device-based solution. "We are constantly focused on innovations that are disruptive, and you can't do that without understanding the needs of what your end user requires."
Since the company first released the payment app, several retailers (which have asked to remain unnamed) have been using it for the past two quarters. "There is a lot of excitement around it and the possibilities of what could be done as we go into the holiday season," Bomber explains. "I think everybody wants to give. No one wants to go and stand in line to give."
Key Takeaways:
While shoppers are bringing their business to brick-and-mortar stores, they often seek an easy transaction process more like Internet-based shopping.
Honeywell's Smart Pay system is intended to make it easier for customers to skip lines and make purchases, while store associates can help them do so via a single device.
