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forecourttech February 20

A bi-monthly technology magazine for the evolving retail forecourt.

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Technology for the evolving retail forecourt.<br />

ISSUE: 07 | January / <strong>February</strong> <strong>20</strong><strong>20</strong><br />

Right offer,<br />

right place,<br />

right time,<br />

RIGHT TECH<br />

PDI’s President & GM of Marketing Cloud<br />

Solutions, Brandon Logsdon, discusses how<br />

technology and changing customer behaviours<br />

is shaping today’s loyalty programs.<br />

TOKHEIM EYE TM SECURITY<br />

SOLUTION FROM DOVER FUELING<br />

SOLUTIONS<br />

EDGE PETROL’S LATEST WEBINAR<br />

EXAMINES THE ROLE OF DATA<br />

IN FUEL PRICING.


<strong>forecourttech</strong><br />

Editors note<br />

Happy New Decade!<br />

It’s strange to think that as we enter <strong>20</strong><strong>20</strong> most of the<br />

technologies that form part of our every day lives, were<br />

not available ten years ago.<br />

Uber, Instagram, contactless payments, wireless<br />

headphones, smart home devices, online shopping.<br />

Back in <strong>20</strong>09 none of these existed.<br />

If you’d told me ten years ago I could pay for fuel using<br />

my watch, that I could order fuel delivery to my home or<br />

that autonomous vehicles would be being piloted on our<br />

streets, I’m not sure I would have believed you.<br />

When I think about how far we have come in such a<br />

short space of time it excites me to think where we<br />

might find ourselves in the next ten years. Technology<br />

presents so many opportunities for this industry and I<br />

am excited to see what new technologies emerge and<br />

how we as an industry work together to take on the<br />

challenges and make the most of the opportunities that<br />

are presented to us.<br />

pagethree<br />

<strong>forecourttech</strong> will be back for its third outing from 6-7<br />

October <strong>20</strong><strong>20</strong> at the Asia Gardens Hotel & Thai Spa in<br />

Alicante, Spain. We are currently working hard behind<br />

the scenes on a number of exciting initiatives to ensure<br />

that the event remains fit for purpose and maintains it<br />

focus on the evolving retail forecourt.<br />

I look forward to being able to share the details with you<br />

soon.<br />

Enjoy the issue.<br />

Ed.<br />

The <strong>forecourttech</strong> brand is owned and<br />

promoted by SAB Events Europe Ltd. All<br />

rights reserved.<br />

The views expressed in this magazine are<br />

those of the author and do not necessarily<br />

represent those of SAB Events Europe. No<br />

part of this electronic magazine may be<br />

copied or reproduced without the written consent<br />

of SAB Events Europe Ltd.<br />

Advertising:<br />

Stephen Bozdan<br />

stephen@sabevents.eu<br />

Features:<br />

Wendy Taylor<br />

wendy@sabevents.eu<br />

SAB Events Europe Ltd.<br />

The Quadrant<br />

Surrey<br />

KT17 4RH<br />

www.sabevents.eu<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


We’re gonna<br />

give you something<br />

to think about.<br />

Insights and inspiration<br />

from the world<br />

beyond your doors.<br />

NACS Convenience Summit Europe is the best way to<br />

grow your global business. Designed for senior-level<br />

executives from Europe and abroad, this event offers<br />

smart thinking on the global trends, technologies and best<br />

practices that are shaping the future of convenience and<br />

fuel retail. You’ll hear from some of the brightest minds<br />

within and outside our industry. Be ready to pivot, we’ll<br />

show you how.<br />

2-4 June <strong>20</strong><strong>20</strong> | Berlin, Germany<br />

Register today at<br />

conveniencesummit.com


THE ROLE OF<br />

DATA IN<br />

FUEL PRICING<br />

Finding the right pricing solution to match your<br />

business needs can seem like a bit of a minefield. In<br />

Edge Petrol’s latest webinar they help retailers to<br />

understand their options and discuss how they can<br />

unlock their business potential.


<strong>forecourttech</strong><br />

pagesix<br />

When it comes to the role data can play in fuel<br />

pricing, it is a one-size fits all approach. Different types of<br />

retailers have different objectives and will use different data<br />

sources to varying degrees.<br />

“Edge and our competitors are upgrading the use of<br />

data in the industry and, as a whole, that is beneficial for<br />

everyone. We want to show retailers what is possible with<br />

the right data and the right tools at your disposal,” explains<br />

Mark Truman, Chief Revenue Officer who was joined on the<br />

webinar by Nikhil Patel, Senior Sales Manager and Oscar<br />

Smith Diamante, Chief Editor at Petrol Plaza.<br />

To make things simple Edge Petrol, has identified four<br />

retailer stereotypes, based on their meetings with hundreds<br />

of different retailers. Each stereotype has different objectives<br />

and strategies and will use data to varying degrees in<br />

order to meet their goals.<br />

The Libero retailer is focused on volume and achieving<br />

high footfall. They achieve this by undercutting competitors<br />

and therefore need competitors pricing data in order to ensure<br />

their price is competitive. This is model is particularly<br />

popular with supermarkets where they are able to convert<br />

the footfall into dry stock sales.<br />

The Zlatan retailer, like the man himself, is a high roller.<br />

They have high margins and can maintain this because<br />

they are in low competition areas – think motorway service<br />

sites or stations in rural locations. The data they need<br />

is cost prices to ensure they are achieving the required<br />

margins.<br />

The Groundhog does not require much data at all because<br />

their prices rarely change, unless there are huge fluctuations<br />

in the market. Their focus is on brand perception and<br />

their time and this stereotype is often associated with small,<br />

busy retailers. While this system may be easier to run it also<br />

runs the risk of missing opportunities to maximise profits.<br />

The final stereotype is The Enganche, for those not familiar<br />

with the phrase, it’s an Argentinian footballing term used to<br />

describe a traditional playmaker. The playmaking retailers<br />

are focused on maximising profits using a whole range<br />

of data sets and is and ideal model for large or growing<br />

portfolios. Being the Messi of the petrol retail world does<br />

come with its risks however as inaccurate data, out of date<br />

insights and not being able to action quickly can significantly<br />

affect outcomes.<br />

Whilst each of these stereotypes differs drastically in<br />

needs, they all require some form of data in order to unlock<br />

their full potential. Once a retailer is able to identify their<br />

type it becomes much easier to source the products and<br />

services that they need.<br />

“If you don’t see value in these tools, your competition will,”<br />

added Mark. “Change is coming to the forecourt industry<br />

and those who don’t improve or adapt will be left behind.”<br />

Edge plan to expand on this first webinar and plan to run a<br />

panel style webinar with representatives from other pricing<br />

solutions providers with the primary goal of educating<br />

retailers: “anyone can sell a product to a company, but can<br />

you sell an idea to an industry? added Mark.<br />

The full webinar can be viewed below:<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

THE LIBERO<br />

THE ZLATAN<br />

Cares about: Volume<br />

Common market type: Competitive<br />

Good system for: Strong dry stock offerings<br />

Data / insight required: Competitor pricing<br />

Benefits: High footfall<br />

Risks: Low / negative margins, low conversion to dry<br />

stock sales.<br />

Cares about: Margin<br />

Common market type: Rural / low competition<br />

Good system for: Prime real estate<br />

Data / insight required: Cosy prices<br />

Benefits: High margins<br />

Risks: Volume fluctuations / low shop sales<br />

pageseven<br />

THE GROUNDHOG<br />

THE ENGANCHE<br />

Cares about: Brand perception, their time<br />

Common market type: Varied<br />

Good system for: Small and busy retailers<br />

Data / insight required: Not much<br />

Benefits: Easier to run<br />

Risks: Leaving money on the table. Volume, margin<br />

and profit fluctuations.<br />

Cares about: Maximising profits<br />

Common market type: Varied<br />

Good system for: Large or growing portfolios<br />

Data / insight required: Volume, cost prices / margins,<br />

competitor pricing<br />

Benefits: Easier to run<br />

Risks: Inaccurate date/ out of date insight. Not being<br />

able to action quickly.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

News round-up<br />

Chrysler, Dodge, Jeep and Ram drivers will<br />

now be able to pay for fuel and services<br />

through Fiat Chrysler Automobiles’ FCAU<br />

UConnect Market at Shell-branded sites<br />

across the United States. The new e-commerce<br />

platform will help customers locate the<br />

nearest Shell fuel station and securely pay<br />

for fuel and services through their in-vehicle<br />

infotainment systems.<br />

More than half of taxi and Uber customers<br />

in Europe are willing to pay an extra 15-<strong>20</strong><br />

cents per kilometre for a zero-emission ride,<br />

according to a poll published by survey<br />

organisation YouGov today. 52% of people<br />

surveyed in seven European countries said<br />

they would spend the extra amount per km<br />

(0.6 miles) if their ride was in a vehicle that<br />

does not produce carbon emissions, such as<br />

an electric car.<br />

pagesix<br />

CAFU, the MENA region’s first on-demand<br />

fuel delivery app has entered into a fuel<br />

supply partnership with Al Maha Petroleum<br />

to deliver its popular services to customers in<br />

the Sultanate. CAFU is a fast, safe and easyto-use<br />

on-demand fuel delivery service app<br />

allowing customers to order car fuel at their<br />

own convenience.<br />

General Motors has confirmed it will invest<br />

$2.2 billion to convert an ageing Detroit assembly<br />

plant into the manufacturing heart of<br />

its “all-electric future.” The Detroit-Hamtramck<br />

Assembly Plant was one of five North<br />

American factories GM said it would close in<br />

November <strong>20</strong>18 but the automaker reversed<br />

course as part of an aggressive plan to<br />

launch more than <strong>20</strong> battery-electric vehicles,<br />

or BEVs, by <strong>20</strong>23.<br />

Food retail, wholesale and distribution company<br />

AF Blakemore has added fifteen of<br />

its UK Spar convenience stores to the food<br />

waste fighting app, Too Good to Go, which<br />

enables people to purchase short-dated food<br />

for a reduced price. The app, which was<br />

launched in the UK in June <strong>20</strong>16, was set up<br />

to help tackle the ten million tonnes of food<br />

wasted each year by saving the fresh and<br />

short-dated food often discarded by restaurants<br />

and retailers.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

Cruise, the autonomous vehicle division of<br />

General Motors has unveiled an ambitious<br />

new vehicle that its executives said was “the<br />

beginning of the future beyond the car.” The<br />

futuristic electric vehicle, the Cruise Origin,<br />

which has no steering wheel and seats six<br />

passengers, has a long road to travel before<br />

any passengers will be able to hail a ride in<br />

it. Cruise would not name a time frame for its<br />

availability.<br />

Total will install <strong>20</strong>,000 new public electric<br />

vehicle (EV) charging points, after winning<br />

Europe’s largest concession contract from<br />

Metropolitan Region Amsterdam Electric<br />

(MRA-Electric). The oil and gas company<br />

will install and operate the chargers in three<br />

provinces in the Netherlands: North-Holland,<br />

Flevoland and Utrecht (excluding the municipalities<br />

of Amsterdam and Utrecht). All of the<br />

electricity for the chargers will be sourced<br />

from renewables located in the Netherlands<br />

pageseven<br />

Later this year, consumers with<br />

Alexa-enabled vehicles, Echo Auto and other<br />

Alexa-enabled mobility devices will be able<br />

to say, “Alexa, pay for gas” to pay for fuel<br />

at over 11,500 Exxon and Mobil stations.<br />

Transactions will be processed using Amazon<br />

Pay, allowing consumers to securely use the<br />

payment information stored in their Amazon<br />

account, and powered by digital commerce<br />

technology from Fiserv Inc.<br />

Pakistan State Oil (PSO) has signed a partnership<br />

with Uber.. PSO will provide its<br />

advanced DIGICASH Fuel Cards, Fuelink<br />

Mobile App and special offerings to Uber<br />

partner drivers. DIGICASH enables a convenient<br />

fueling experience where Uber parters<br />

can monitor their fueling expenses, as well as<br />

access special discounts and rewards.<br />

The South Korean government will provide<br />

a total of 950 billion won (about 627 million<br />

euros) in <strong>20</strong><strong>20</strong> to subsidise electric cars and<br />

expand the network of charging stations in<br />

the country, this signifies a 60 per cent<br />

increase from <strong>20</strong>19.<br />

BP has launched a new consumer loyalty program,<br />

BPme Rewards, which has rolled out<br />

to participating BP and Amoco gas stations<br />

across the U.S. The program replaces BP<br />

Driver Rewards and can be accessed exclusively<br />

through the BPme mobile app, which<br />

allows customers to buy gasoline without the<br />

need to swipe a credit card or use the pin<br />

pad at the fueling station. The app also helps<br />

customers track their rewards and automatically<br />

deducts points on purchases.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

Tokheim EYE TM Security Solution<br />

from Dover Fueling Solutions (DFS):<br />

Surveillance you can Trust<br />

pageten<br />

Dover Fueling Solutions (DFS), a part of Dover Corporation<br />

and a leading global provider of advanced customer-focused<br />

technologies, services and solutions in the fuel<br />

and convenience retail industries, advises fuel retailers of<br />

an effective way to combat fuel theft on the forecourt.<br />

Drive-offs at fuel stations have become a frequent problem<br />

over recent years, affecting many fuel businesses across<br />

the globe and substantially affecting profit margins. It is<br />

estimated that drive-offs are responsible for at least two<br />

thirds of retail fuelling forecourt crime* and are one of the<br />

primary drivers causing stations to close. It is no wonder<br />

that fuel retailers are increasingly looking for effective ways<br />

of combatting such felonies.<br />

Switching to ‘pay-at-pump’ technology, whilst largely effective<br />

at preventing crime on the forecourt, can be costly,<br />

with the Petrol Retail Association (PRA) estimating prepayment<br />

technologies costing around £<strong>20</strong>,000 per forecourt.<br />

This has driven many forecourt owners to look for alternative<br />

crime detection and prevention services at a fraction<br />

of the cost. One of these options is the Tokheim EYE TM<br />

Security Solution from DFS.<br />

A powerful but easy-to-use digital camera surveillance system<br />

designed specifically for petrol stations, the Tokheim<br />

EYE advanced high-definition CCTV solution is able to<br />

selectively store relevant images of possible crime; images<br />

that are instantly captured as soon as movement is detected<br />

on the forecourt. Storing receipt and filling number<br />

together with the images, the solution enables retailers to<br />

instantly retrieve information concerning specific events<br />

at the touch of a button and prevents hours of trawling<br />

through CCTV footage that would be required with conventional<br />

surveillance methods. Additionally, users can<br />

make use of the extensive filtering feature, allowing them to<br />

refine incidents by product type, tanker refuel and dispenser<br />

door panels being opened without authorisation. With<br />

an effective ‘pinch and zoom’ feature, users are also able<br />

to quickly isolate and focus on specific parts of captured<br />

images without losing image quality.<br />

The 24/7 monitoring system can display up to nine images<br />

of the fuelling site on the cashier’s screen and is enabled<br />

with both static and dynamic automatic number plate recognition,<br />

allowing retailers to store instances of drive-offs<br />

in a blacklist directory. If the offender returns to the petrol<br />

station, the cashier is instantly notified and is able to act<br />

quickly to take further action. The Tokheim EYE solution is<br />

integrated with the electronic point of sale (EPOS) system,<br />

allowing it to detect suspicious patterns and act upon<br />

employee theft. Once captured, data can be shared with<br />

all forecourts within a network or with other organisations<br />

in the area that are at risk of being affected by crime from<br />

repeat offenders, increasing the chance of prosecution.<br />

If supporting evidence is required by authorities, footage<br />

is easily exportable to digital applications such as DVD,<br />

memory stick or email.<br />

It’s not just crime that the Tokheim EYE solution is designed<br />

to manage. Integrated with the Tokheim Fuel POS TM<br />

point-of-sale system, the Tokheim EYE solution is able to<br />

reduce mix ups at the till, which is especially useful at busy<br />

periods.<br />

For more information on the Tokheim EYE digital surveillance<br />

system and its crime prevention capabilities, visit<br />

http://tokheim.com/system/tokheim-eye/.<br />

*Source: The British Oil and Security Syndicate (BOSS)<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


The Tokheim EYE<br />

digital surveillance<br />

system.<br />

Tomorrow’s<br />

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Today.<br />

A cloud-based software suite<br />

to manage all your energy<br />

www.ICASA-group.com


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Right offer,<br />

right place,<br />

right time,<br />

right technology.<br />

Following the release of PDI’s latest ‘The Road to<br />

Rewards Report’, <strong>forecourttech</strong> spoke with Brandon<br />

Logsdon, President and GM of Marketing Cloud<br />

Solutions for PDI, to unpick some of the key findings.


<strong>forecourttech</strong><br />

According to the report, mobile apps are<br />

the most popular method of tracking<br />

rewards.<br />

pageten<br />

In the increasingly competitive retail fuel industry, loyalty<br />

schemes can be a key tool in driving profitable customer<br />

behaviours. But, to engaging today’s tech-savvy consumers<br />

it requires more than just creating an appealing offer.<br />

Customers want personalised experiences and instant reward,<br />

and this requires retailers to think not just about what<br />

they are offering but also how they’re offering it.<br />

The Road to Rewards Report examines the needs of CPG<br />

brands, grocers, convenience store operators, and consumers<br />

with the aim of providing a comprehensive view of<br />

the retail loyalty landscape and what is driving consumer<br />

behaviours. The trends unearthed in this year’s report are<br />

clear: rewards programs that leverage loyalty currencies<br />

with universal appeal and offer everyday value can help<br />

Data is perhaps the most<br />

valuable asset that retailers<br />

have, and it’s probably still<br />

the most under utilised.<br />

Brandon Logsdon<br />

President & GM of Marketing Cloud<br />

Solutions for PDI<br />

retailers compete as well as fast-track them on the road<br />

to loyalty success. But it is retailers who are fully utilising<br />

customer data and applying it with industry-specific marketing<br />

and loyalty technologies that are reaping the biggest<br />

rewards.<br />

“Data is perhaps the most valuable asset that retailers<br />

have, and it’s probably still the most under utilised,” explained<br />

Brandon.<br />

“To effectively use data, you have to have a holistic view of<br />

the data, or you run the risk of using the data inefficiently<br />

or just being wrong about an outcome. Fuel marketing and<br />

convenience retail, more so than any other retail space,<br />

has a lot of point solutions, and each collects valuable<br />

customer data. If you don’t have a well thought out plan<br />

with tools to rectify the disparate nature of all of those data<br />

points, then you’re going to have a really hard time having<br />

a holistic view of the customer, and that’s going to be a<br />

big barrier to how you effectively use the data,” added<br />

Brandon.<br />

Since the report first launched in <strong>20</strong>15, there has been<br />

a huge shift in how customers interact with retailers and<br />

consumer attitudes towards technologies. The report<br />

highlighted that the least engaged group with fuel station<br />

loyalty programs is Generation Z, those born after 1995,<br />

who have grown up with technology and tend to disengage<br />

from traditional marketing techniques.<br />

“With Gen-Z, and also the millennial generation, you can’t<br />

be singularly focused on a communication channel, you’ve<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

got to be omni-channel. These generations want offers,<br />

they want rewards, they want to be spoken to on a one-toone<br />

basis with strong personalization, but they also want a<br />

little bit more. They want to understand the ethical nature of<br />

what is being delivered to them in the products, and they<br />

want offers that align with their core beliefs. That’s a challenge<br />

for retailers, but I think it’s also a huge opportunity,”<br />

explained Brandon.<br />

When it comes to crafting an offer, everyday savings are<br />

the biggest hit with customers, with survey participants<br />

highlighting fuel savings as the most desirable.<br />

“To recruit customers, you have to know what the customer<br />

wants. If you know what the customer wants and needs<br />

from you, then you can craft an offer and a reward that<br />

will be appealing to them. If you’re just putting a reward<br />

in market for the sake of having a reward program or because<br />

your competitor has one, you may not always have<br />

success getting customers interested in it,” said Brandon.<br />

As well as getting the right offer, customers want this delivered<br />

in the right place at the right time:<br />

“We know that if you don’t have real-time redemption<br />

involved, consumer adoption, consumer interest, activity<br />

data—all the key metrics of a loyalty program—start to fall<br />

off,” said Brandon.<br />

Couple this with the fact that over 70 percent of transactions<br />

in the US occur at the dispenser, then having the<br />

right technology in place to create an innovative fueling<br />

experience for the customer is essential. The use of instant<br />

savings at the dispenser is hugely appealing to customers,<br />

and for retailers, it can be a useful tool in combating one<br />

of their biggest business challenges. Retailers in the report<br />

expressed concern over the rise of the digital consumer<br />

and its impact on store footfall, but Brandon believes this<br />

actually presents a great opportunity:<br />

“What drives a lot of our program success is getting customers<br />

to come in the store and buy convenience items<br />

that then earn them a discount on gasoline. They can then<br />

go to the pump and redeem that discount. In that type of<br />

model, even though the gasoline is ultimately what you are<br />

discounting, what you are actually driving is in-store sales.”<br />

In addition to providing marketing solutions and offering<br />

decades of industry expertise to help businesses craft<br />

meaningful loyalty programs, PDI also manages its own<br />

“We know that if you don’t<br />

have real-time redemption<br />

involved, consumer<br />

adoption, consumer interest,<br />

activity data—all the key<br />

metrics of a loyalty<br />

program—start to fall off.<br />

rewards program, the Fuel Rewards® program. The program’s<br />

<strong>20</strong> million members earn rewards when they shop,<br />

dine, book travel, and make other day-to-day purchases,<br />

which can combine to drive down the price of fuel at the<br />

pump. Brands partnered with the Fuel Rewards program<br />

in the scheme include T-Mobile, Lyft, Dunkin’ and The<br />

Home Depot. The points earned between fill-ups can be<br />

redeemed at over 13,0500 Shell locations for instant fuel<br />

price rollback.<br />

These joined- up or coalition models are increasingly<br />

popular with consumers globally, but Brandon believes<br />

that there is still an opportunity for retailers to go it alone:<br />

“I think there’s room in almost every major country or<br />

market for both models. Relevance always wins, whether<br />

you’re doing a singular private label program or you’re in a<br />

joined- up program, consumers demand personalisation.<br />

Consumers have all been exposed to programs and opportunities<br />

where data has been used effectively, and what we<br />

have found, time and time again, is that consumers love<br />

that. They love it when they are served the right offer, at<br />

the right time in the right place. So, the question is how do<br />

you deliver that? Wherever you are, how do you deliver a<br />

program, irrespective of construct that leads to right offer,<br />

right time, right place?”<br />

For more information on PDI, visit www.pdisoftware.com.<br />

pageeleven<br />

Brandon Logsdon is the President and GM,<br />

Marketing Cloud Solutions.<br />

Brandon joined PDI in <strong>20</strong>18. He oversees the Loyalty<br />

solution, in addition to the MarketLink and Data<br />

monetisation services. Prior to PDI, Brandon served<br />

as Excentus’ President and CEO, and was the driving<br />

force behind the launch of the most successful national<br />

coalition marketing program in the U.S., the Fuel<br />

Rewards® program, as well as robust loyalty solutions<br />

for the convenience retail and grocery industries.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

Predicting the future<br />

of payments<br />

By Andreas Strobel<br />

President, Smart Payment Association<br />

pagetwelve<br />

Five years ago the Smart Payment Association (SPA)<br />

made 12 payment predictions for <strong>20</strong><strong>20</strong>. So how did we get<br />

on?<br />

Since the establishment of the SPA on 01 January <strong>20</strong>05,<br />

the retail payments market has been in a continual state of<br />

evolution. We’ve seen the emergence of digital currencies,<br />

digital wallets, the entrance and growing influence of nonbank<br />

players across the ecosystem and much more.<br />

As the trade body of the smart payments ecosystem, SPA<br />

and its members have played an important role – as technology<br />

innovators, regulatory influencers and, of course,<br />

as the publishers of the annual analysis of payment card<br />

trends.<br />

In our fifteen years, we have also prided ourselves on our<br />

ability to identify emerging trends. As we enter this new<br />

decade, we thought we’d put that confidence to the test!<br />

Five years ago this month we published a 12-point article<br />

predicting how we’ll be paying in <strong>20</strong><strong>20</strong>. Let’s pick up on<br />

some of the points to see how we did.<br />

Prediction 1. Card-based technology will still be the<br />

dominant form factor for both fixed and mobile retail<br />

payment instruments.<br />

Even before <strong>20</strong>15, many industry figures were predicting<br />

the dramatic decline of the physical payment card. We<br />

didn’t agree. While many regions of the world are heading<br />

towards a cashless future, this evolution seems to be driven<br />

by the card. The latest figures based on actual manufacturer<br />

sales data show continued year-on-year growth<br />

and record shipment numbers of smart payment cards.<br />

While Apple, Google and other device-based payment services<br />

are certainly popular, it appears the security, speed<br />

and convenience of contactless cards is keeping consumers<br />

reaching for their wallets before their phones.<br />

Prediction 4. Non-bank entrants in the retail payments<br />

market will stay and consolidate, provided that access<br />

to payment infrastructures is enabled.<br />

In Europe especially, the evolution of the Payment Services<br />

Directive (PSD2) has done much to open the market to<br />

non-bank payment service providers since <strong>20</strong>15, and<br />

indeed has enabled the expansion of payment instruments<br />

to include loyalty cards, mobile phone numbers and more.<br />

This is all about striking the right balance to deliver a<br />

secure, interoperable and convenient payment experience<br />

for consumers. While this may be the ultimate goal of PSD2<br />

over RTS initiative, this experience already exists in the<br />

shape of the smart payment card.<br />

Prediction 10. Interoperable real-time payment infrastructures<br />

will be the rule, not the exception.<br />

While we recognised the appetite for instant payment,<br />

we also highlighted the considerable technical, financial<br />

and adoption barriers. In Europe at least, the market has<br />

certainly moved forward in the intervening years. We’ve<br />

seen the launch of the Euro Banking Association’s (EBA)<br />

real-time payment processing facility RT1, and more recently<br />

the TARGET Instant Payment Settlement (TIPS) from<br />

the European Central Bank. In the United States, instant<br />

payment-based apps such as Pay by Bank and Vipps are<br />

available, and instant payment services are a key part of<br />

the Federal Reserve’s strategy.<br />

Back in <strong>20</strong>15, we also touched on developing form factors<br />

and the potential of contactless payment in the wearable<br />

world. Certainly, NFC payment-enabled smart watches<br />

have been with us for some time. If the latest news coming<br />

out of CES <strong>20</strong><strong>20</strong> is anything to go by, payment-ready<br />

wearables will be a major and growing strategic focus for<br />

customer and technology brands as we move forward.<br />

Just as on the smart card, biometrics continues to play a<br />

powerful enabling role in the future of contactless payment<br />

security. This has always been a key area of study for SPA,<br />

having pioneered biometrics with EMVCo since the mid-<br />

<strong>20</strong>10s. We’re pleased that EMVCo is now actively promoting<br />

the use of on-card biometrics to authenticate payment,<br />

while the EBA is recommending its inclusion into PSD2.<br />

So, looking back, how did we do? We think…ok! Most<br />

of our predictions have come (or are coming) to fruition.<br />

There’s still work to do, of course. SPA will continue to<br />

collaborate with partners across the ecosystem to help it<br />

transform to address the needs of today’s stakeholders,<br />

regulators and consumers.<br />

And what are our predications for next five years? You’ll<br />

have to wait a little while we consult our crystal ball!<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

Supplier news & insights<br />

pagefourteen<br />

Registration is open for the NACS Convenience<br />

Summit Asia (CSA), March 3–5, <strong>20</strong><strong>20</strong>,<br />

in Bangkok, Thailand. The premiere event will<br />

immerse global convenience and fuel leaders<br />

in the digital transformation of Bangkok’s retail<br />

market. Hear from inspiring speakers, learn<br />

from innovative case studies and join experts<br />

on guided retail tours of this bustling city.<br />

Plus, network with over 100 senior executives<br />

from more than <strong>20</strong> countries.<br />

This month Dover Corporation in collaboration<br />

with the McCombs School of Business at The<br />

University of Texas at Austin (Texas Mc-<br />

Combs) hosted a hackathon at its corporate<br />

headquarters in Austin, Texas. The hackathon<br />

saw teams of undergraduate and postgraduate<br />

Texas McCombs students competing<br />

against one another using a combination of<br />

chosen DFS and Microsoft technologies to<br />

create an experience that produces positive<br />

customer sentiment and/or business success<br />

for DFS or the fuel retail merchant.<br />

Astro Baltic’s NOOM software can now interface<br />

with the mobile wallet mTocket. Customers<br />

can now pay securely through the app at<br />

more than 60 Alexela stations.<br />

From the headquarters in Belgium and the<br />

foreign branch offices, ICASA fully focuses<br />

on providing its software suite with HOS/<br />

BOS functionality and fleet card management<br />

worldwide. To support this growth, ICASA is<br />

looking for enthusiastic people to be part of<br />

their ambitious team.<br />

How can retailers differentiate their convenience<br />

offering? In their latest blog post,<br />

Kalibrate, offer four tips to help you achieve<br />

convenience success.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com


<strong>forecourttech</strong><br />

<strong>20</strong>19 has been a transformative year for retail.<br />

Technology continues to define the rules of<br />

the game and consumers are more demanding<br />

than ever. In a new blog post, intouch.<br />

com recap some of key trends and news from<br />

the past year.<br />

ISTOBAL will be investing in digitalization,<br />

innovation and new business opportunities in<br />

<strong>20</strong><strong>20</strong>. The multinational Group will be boosting<br />

the connectivity of its car wash facilities,<br />

as well as developing various new products<br />

and services suited to new mobility scenarios<br />

and all kinds of vehicles. They will also be<br />

forging ahead with its digitalisation strategy<br />

and introducing new technologies in its production<br />

plants in order to enhance its competitive<br />

edge and efficiency. You can catch<br />

up with ISTOBAL at 15 trade fairs this year.<br />

pagefifteen<br />

Diebold Nixdorf has been recognised as the<br />

top global provider of self-ordering kiosks<br />

by industry research firm RBR in its Global<br />

Self-Ordering Kiosks <strong>20</strong><strong>20</strong> study. The report<br />

recognized Diebold Nixdorf as the largest<br />

self-ordering kiosk supplier in the world as<br />

of June <strong>20</strong>19, with a market share of 19% by<br />

installed base and 24% by shipments.<br />

Dutch retailer, TanQYou, has continued its<br />

expansion with the opening of a new store in<br />

Westergeest. To celebrate the launch customers<br />

received discounted fuel rates and<br />

were entered into a draw to win on of two €50<br />

clothing vouchers.<br />

In their latest blog post, BigBrother discuss<br />

how strategic insight into your customers is<br />

crucial in combating the decline in fuel turnover.<br />

#<strong>forecourttech</strong> @<strong>forecourttech</strong> www.<strong>forecourttech</strong>.com

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