Week of January 4, 2016
Michael Kachmar, Editor

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Our Product Pick

Cherry (Pleasant Prairie, WI) has debuted its new G86 Magnetic-Stripe Reader (MSR) Encryption Keyboard Series for POS. Offered with and without touchpad, in both Model SPOS 14.2" and Model LPOS 17.4" lengths, the Cherry G86 MSR Encryption Series offers the highest level of data security, according to the vendor. Upon swipe, sensitive credit card data is encrypted immediately within the device, before any transmission. As benefits of its keyboard products, Cherry cites plug-and-play configuration and robust construction. Also, ZF Electronics, the parent company, has spun off Computer Input Devices (CID), the keyboard business of interest to VARs, Dealers, and System Integrators, into Cherry Americas LLC.

Cherry's G86 MSR Encryption Series

COMPANY BUSINESS

Star Illuminates Cloud

Star Micronics (Somerset, NJ) has unlocked its AllReceipts App for all current customers of its thermal printers. Unveiled in 2015, AllReceipts, as the name suggests, brings an advanced digital receipt solution delivered to the consumer's smartphone via QR Code. For the retailer, it offers device management and survey and promotional opportunities. It falls under the new Star Micronics Cloud.

"Retailers are seeking cloud-connected solutions, but their current business operations may not allow them to completely replace their POS," David Salisbury, VP of Sales and Marketing at Star Micronics America, told RRN.Com. "A simple, easy, low-cost solution," he characterized Star Micronics Cloud, "with no cost for the reseller, and, most importantly, no cost for the retailer." A potentially vast network of access points exists, he emphasized, citing six million printers in the field for POS.

"At Star Cloud Services, our goal is to build an advanced ecosystem," continued Salisbury. "In the future, we expect third parties to use AllReceipts for additional services, with possible revenue for resellers." He expects such third-party services to manifest themselves in 2016. In the meantime, resellers may offer AllReceipts as value-add for their customers--current and future. Star Micronics Cloud will be showcased at the upcoming National Retail Federation Show in New York City.

Star Offers AllReceipts App for Printers

ASI's Duet With VARs

It's understandable if VARs feel they've taken the proverbial one-two punch to the head (in this case, changing delivery models for IT and direct sales of tablet POS). In answer, one longtime ISV, Action Systems, Inc. (Silver Spring, MD), will introduce its new software platform, entitled "duet." Developed internally, and self-funded, according to Joe Finizio, VP of Sales and Marketing for ASI, duet hopes to successfully "channel" cloud-based tablet POS.

"We're truly independent [at ASI]," emphasized Finizio. "We're focused on software and we're focused on the channel. We've got both the traditional client server product, Restaurant Manager--which we continue to improve with Version 20--and now we've got this cloud-based tablet POS: duet. Significantly, it suits quick-service, counter-service, and table service. Not just your typical 'give me coffee, give me scone.' We drew upon our thirty years of experience for more advanced features."

At launch, duet utilizes iOS and Microsoft SQL. It will be formally premiered at ASI's 15th Annual Reseller Conference this week in Orlando, FL, along with Restaurant Manager 20. "Due to the release of duet, our keynote speakers--Ken Thoresen of Acumen Management Group and Rachel Roberts, former GM of NCR/Aloha's VAR Channel--will be educating our resellers on how to transition into the SaaS/Cloud marketplace and generate predictable revenues for their businesses," Finizio told RRN.Com. Subsequently, duet will enter controlled beta test. As many readers may know, Finizio formerly served as CEO of the Retail Solutions Providers Association (RSPA) and VP for Micros.

Action Systems, Inc. Brings Its Cloud-Based Tablet POS to the Channel

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Worth Your While

NRF's Big Show - Annual Conference
National Retail Federation
January 17-20
New York City

Inspire 2016
Retail Solutions Providers Association
Jan. 31 - Feb. 3
San Diego

NGA Show 2016
National Grocers Association
Feb. 28 - March 2
Las Vegas

Transact 16
Electronic Transactions Association
April 19-21
Las Vegas

WERC 2016
Warehousing Education and Research Council
May 15-18
Providence, RI

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ALL IN THE FAMILY

Trimble Maps Kenai

Trimble (Sunnyvale, CA) has unwrapped its new rugged tablet computer, dubbed Kenai (for the region of Alaska). It targets transportation, public safety, utilities, insurance, forestry, and other outdoor or service-related environments. Weighing 3.5 lbs., it carries 10" multi-touch capacitive touchscreen with superior readability in heavy rain or bright sunlight and Gorilla Glass. It runs Windows 10 Professional, Intel Atom Dual-Core CPU at 1.4 GHz, 4- or 8-GB RAM, and up to 256-GB SSD.

As standard features, Kenai delivers Bluetooth 4.0, 802.11a/b/g/n Wi-Fi, GPS, and 8-megapixel camera. With run time of 5 hours, the battery is hot-swappable; an optional external battery achieves 10 hours. Expandability is provided via USB 2.0 x 2 and RS-232 Serial. Also available: 4G LTE WWAN.

For security, Kenai provides encryption with built-in Trusted Processing Module, as well as Federal Information Processing Standards (FIPS) 140-2. As expected, it meets MIL-STD-810G for drops, vibration, and humidity, and IP-65 for water and dust. "With new features and functionality, the Kenai tablet is an ideal solution that provides even more computing power to mobile professionals--more memory, computing speed, drive capacity, connectivity options, and optimum display readability," proclaimed Jim Sheldon, GM of Trimble's Mobile Computing Solutions Division.

Kenai Rugged Tablet Computer by Trimble

One Way to Iot (Better Get There)

Fujitsu Components America (San Jose, CA) has stocked its battery-powered Bluetooth Smart Beacon for the Internet of Things (Iot). According to the firm, market uses include navigation at train stations, airports, and exhibition halls; logistics management; healthcare; retail couponing; and so-called point of presence (POP). It's packaged in 1.6 in. (W) x 1.2 in. (H) x 0.5 in (D) plastic case, with negligible weight of 0.35 oz.

Designated model number FWM8BLZ02, this Smart Beacon has typical transmission range of 66 ft./20 m, broadcast only, and battery life of two years (powered by CR-2450 coin-cell). A text-based, over-the-air configuration mode may be utilized to load existing protocols, such as iBeacon and Eddystone, or to define and change custom protocols, operating parameters, and advertising data. An LED indicator light visually distinguishes between normal operating mode, configuration mode, and recovery mode to help prevent errant initialization.

Practically speaking, it includes hole for strap or fixing screw. Fujitsu also provides sample application source code for iOS and Android. Model FWM8BLZ02-109042 has FCC, IC, and CE certification and meets Bluetooth Version 4.1. By anyone's estimate-- IDC, McKinsey, Gartner--the market for Iot will reach the trillions of dollars over the next decade. Take note, Auto ID VARs.

Fujitsu's Bluetooth Smart Beacon


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ALLIANCES

"Yiftee" Lifts Cayan

Cayan (Boston, MA), one of the payment processors most vested in POS VARs and ISVs, has enlisted Yiftee (Menlo Park, CA) to offer digital gift cards. With this partnership, merchants enable customers to text, e-mail, or use social media to send gift cards from their desktops or mobile devices. Intended recipients receive monthly reminders of their gift and who sent it, encouraging them to visit the merchant's store or website to redeem the value. No technical integration is needed to POS.

"Yiftee's partnership with Cayan allows brick-and-mortar businesses to grow their customer base through digital purchases," proposed Lori Laub, VP of Business Development at Yiftee. "Tools like digital gift cards can be powerful drivers to connect to customers, promote a brand, and add traction to a loyalty campaign. By partnering with Cayan, we're now giving this option to more than 70,000 businesses."

"We were anxiously awaiting a digital gift card solution," relayed Erica Terrell, Director of Marketing for the Glacier Restaurant Group, which recently launched Yiftee for its MacKenzie River Pizza. "Cayan's partnership with Yiftee gives our customers the option to purchase a gift with instant delivery, in addition to traditional gift methods. In today's fast-paced market, our customers have quickly jumped on board with the Yiftee solution."

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Cayan Offers "No Hassle" Digital Gift Card by Yiftee

Ingenico Likes ISVs, Too

Importance of ISVs for payment processors and acquirers has been well-established by now. Less recognized, the interest on the part of payment terminal vendors. Case in point: Ingenico (Alpharetta, GA), which, in its most recent example, has engaged restaurant ISV, Focus POS (Boerne, TX). As customary, under this pact, Focus POS will support Ingenico's "Semi-Integrated" solution, configured to rout customer data around the POS, thereby streamlining migration to EMV as well as simplifying compliance with PCI, according to the two parties.

At the heart of this integration lies Ingenico's Telium. Agnostic in both point-to-point encryption and tokenization, without gateway, Ingenico offers its code library to both VARs and ISVs, Rhonda Boardman, VP of Strategic Development in North America for Ingenico, told RRN.Com. "It can take 6 to 18 months for EMV certification with processors," cautioned Boardman. "A flexible approach for Telium Semi-Integrated," in her words, "speeds the process," with "simple interface." (Note: Ingenico also has its own "On-Guard" P2PE encryption.)

"Unlike some, we do not charge for our Semi-Integrated effort," continued Boardman, "only for support should they need it." With no gateway, the issue of recurring revenue does not come into play--rather, hardware sales, whether through ISOs or VARs. "Always been important to us," says Boardman of ISVs, "but growing because of technologies such as mobile. You see it all coming together. It's very exciting." A dedicated team serves ISVs at Ingenico.

Rhonda Boardman, VP of Strategic Development in North America, Ingenico Group

Code Corner

A newcomer, NMI (Roselle, IL), has released its new payment gateway platform, designated "FACenablement," or, more easily, "FACe." Available for branding, it accommodates both sub-merchant and traditional merchant accounts, according to its developer. In addressing ISOs, VARs, and ISVs, in addition to other payment service providers, FACe includes real-time onboarding, account management, customer fulfillment, billing and accounting services, and statements and reconciliation reporting. As part of its package, NMI offers back-office technical support. "FACe saves payment facilitators the considerable time and capital required to engineer their payment platforms from the ground up," proposed Roy Banks, NMI's CEO. "Instead, they can leverage our platform's ready-to-deploy features and value-added services."

ENVIRONMENTS/PLATFORMS

It's Just Business at PCI SSC

A notable change to the Payment Card Industry Data Security Standard (PCI DSS) Version 3.1. In the area of encryption, the PCI Security Standards Council (PCI SSC) has shifted the date for migration to Transport Layer Security (TLS) Version 1.1--from June 2016 to June 2018. As readers may recall, in April 2015 PCI SSC released PCI DSS Version 3.1, which, among other things, shifted away from older versions of TLS and Secure Sockets Layer (SSL) in order to thwart one source of customer data theft. A new PCI DSS, by the way, will be announced in 2016.

"We want merchants protected against data theft, but not at the expense of turning away business, so we changed the date," reported Stephen Orfei, GM of PCI SSC. "The global payments ecosystem is complex. If you put mobile requirements together with encryption, the SHA-1 browser upgrade, and EMV in the U.S., that's a lot to handle. And it means it will take some time to get everyone up to speed." In making its decision, PCI SSC responded to feedback from the payment community.

"Some payment security organizations service thousands of international customers, all of whom use different SSL and TLS configurations," observed Troy Leach, CTO of PCI SSC. "[In addition to the date] other related provisions will also change to ensure all new customers are outfitted with the most secure encryption into the future. Still, we encourage all organizations to migrate as soon as possible and remain vigilant. Staying current with software patches remains an important piece of the security puzzle."

Stephen Orfei, GM, PCI Security Standards Council

TouchBistro Goes Pro

An ascendant restaurant ISV, TouchBistro (New York City), has rolled out several new capabilities, including what it claims to be the first screen optimization in the industry for the Apple iPad Pro. Available on the Apple App Store, TouchBistro Version 7.0 exploits the larger screen size (12.9" vs. 9.7" for iPad Air 2) and resolution (5.6 million pixels) of the Apple iPad Pro. (It also may be used on an iPad Mini by wait staff for tableside order entry/payment.)

As benefits of TouchBistro Version 7, and Apple iPad Pro, the ISV cited greater readability, room for more information, and familiarity for users with experience on the bigger screens of legacy POS. As additional new products, the ISV has launched its Kitchen Display System, Customer Facing Display, and Menu App. Both KDS, which replaces paper tickets in the kitchen, and CFD, which shows menu items ordered with prices at the front counter for quick-service, also employ iPads, naturally.

"With waiter conveniences like an optional right- or left-handed interface, to major features like unlimited menus and floor plans, to accepting payments of all kinds, including digital and EMV Chip-and PIN, TouchBistro is committed to engineering the best technology into an affordable, easy-to-use, and flexible package," declared Alex Barrotti, CEO and Founder of TouchBistro. Winner of several recent business awards, TouchBistro has been ranked as the top-grossing food and beverage app in 34 countries on the Apple App Store. It charges monthly subscription fees of $69 (solo), $129 (dual), $249 (team), and $399 (unlimited).

TouchBistro Version 7 for Apple iPad Pro

Key Advertiser Links

Be sure to visit these vendors for the latest in channel products and offers for resellers.

POS & Peripherals
AnywhereCommerce
Bematech
Elo Touch Solutions
Harbortouch
Hewlett-Packard
Partner Tech
Pioneer POS
POSBANK USA
Posiflex
PowaPOS
Shopify

Barcode & Transaction Printers
Brother Mobile
CognitiveTPG

Cash Drawers
MMF POS

Data Collection
CipherLab
Code Corporation
Datalogic

Integrated Payment Solutions
Cayan
Datacap Systems
Discover
iPayment Inc.
Mercury/Vantiv
Moneris

Keyboards & Mobile POS
Cherry, ZF Electronics Corp
PrehKeyTec

Receipt Printers
Bixolon America
CognitiveTPG
Star Micronics

Thermal Printers
Seiko Instruments USA

Touchscreens & Monitors
Elo Touch Solutions

INSTALLATIONS

Making More Toast

Another strong entry in restaurant POS, coyly named Toast (Boston, MA), has closed $30 million in Series B funding. This financing round was led by Bessemer Venture Partners, with participation from GV (formerly Google Ventures). Started in 2013, Toast has evolved from its initial mobile payments app to offering its complete Android-based POS.

It recently announced the signing of 1,000 customers in the past five quarters, as well as its deployment for fast casual restaurant chain, Costa Vida Fresh Mexican Grill, which operates in over 75 locations in the U.S. Another chain, Beach Hut Deli, with 40 locations on the West Coast, was one of the early customers for Toast's Software-as-a-Service (SaaS). As targets, interestingly, both iPad-based and legacy POS lie in the sights of Toast.

"We have the opportunity to dramatically improve the restaurant experience through technology, and our customer traction to date shows the industry is ready for this new solution," commented Chris Comparato, Toast's CEO. "We've been growing 4X year-over-year and are excited to continue investing in great people, great products, and great customers." Added Kent Bennett, Partner at Bessemer Venture Partners, "Building great software is hard, but building an organization that makes sure software users are successful is even harder, and that's the constant focus of Toast."

Android-Based POS From Toast

Paying the Rent at Barcoding, Inc.

One of the historic Auto ID VARs, Barcoding, Inc. (Baltimore, MD), has completed deployment of 2,500 new handheld devices for United Rentals. With almost 900 locations across the U.S. and Canada, purporting to be the largest concern in its field, United Rentals sought to minimize downtime and maximize the effectiveness of its mobile route optimization system. As part of the buy, Barcoding, Inc. specified the new Samsung S5s, equipped with OtterBox cases and mobile device management (MDM).

Installation was led by Barcoding's Professional Services Division. This included: deployment plan, project timeline, communications plan, and contingency plan. Barcoding, Inc. also furnished inventory control using its so-called BOS (Barcoding Online Services). It continues to manage the spare pool for United Rentals, so if repairs are needed, Barcoding has responsibility for sending out new devices and getting defective ones fixed by the manufacturer.

"Replacing outdated technology can be a huge undertaking, especially for companies with locations and employees across the map," noted Shane Snyder, President of Barcoding, Inc. "Therefore, effective project management is key to a successful upgrade. With Barcoding, clients like United Rentals have the benefit of relying on a single entity to guide the entire process--from hardware and software procurement, to rollout, to training, and go-live--so businesses do not miss a beat in their day-to-day operations."

United Rentals Calls Upon Barcoding, Inc.

Channel Factoid

Retailers estimate that 3.5% of their holiday returns this year will be fraudulent, up slightly from an estimated 3% reported last year, according to the NRF. Holiday return fraud is expected to cost retailers $2.2 billion, up from approximately $1.9 billion last year. Annually, retailers estimate that returns will reach $260.5 billion--8% of total retail sales, or $9.1 billion. One problem stands out: nine in ten retailers (92%) said they have experienced the return of stolen merchandise. Also, so-called wardrobing, or the return of used, non-defective merchandise, also presents perennial challenges, affecting three-quarters (73%). Some good news in comparing 2014 and 2015: return of merchandise purchased on fraudulent tender fell from 82% to 76%; return fraud by organized retail crime groups fell from 78% to 71%; and uncovered collusion between employees and external forces in fraud fell from 82% to 77%. As digital technology emerges, one-third of retailers polled (34%) said they have experienced return fraud with use of e-receipts, up from 18% in 2014. In one effort to fight fraud, eight in ten retailers (85%) now require identification when making returns with receipts, up from seven in ten (71%) in 2014. "When it comes to retail fraud, retailers can build taller walls, but determined criminals will continue to find taller ladders," indicated Bob Moraca, VP of Loss Prevention at NRF.

HELLO GOODBYE

A Building Block at MMF POS

Block and Company (Wheeling, IL) has named Larry Greenberg as Director of Sales and Marketing for its MMF POS business unit. With over 35 years of experience within multi-distribution channel development and management, Greenberg most recently served as Senior Director of National Accounts for FETCO. He also held senior sales and marketing leadership roles with companies such as Solo Cup, Packaging Corporation of America, and Fort Howard/Sweetheart Cup Corporation.

"I am thrilled to join the MMF POS team at a time when the company is launching innovative new products like the PayVue Illuminated Cash Drawer and offering even more product solutions for the POS industry," shared Greenberg. "With the emergence of ground-breaking market changes related to Mobile POS, EMV adoption, compliance, and Internet shopping, I look forward to providing leadership--both within MMF POS, and to the larger POS community."

Larry Greenberg, Director of Sales and Marketing, MMF POS

Suddenly at ShopKeep

Citing personal reasons, Norm Merritt, CEO and President, has left ShopKeep (New York City). Merritt joined the iPad POS ISV in May 2014. Michael DeSimone, who was formerly CEO of BorderFree, a publicly traded company sold to Pitney-Bowes in 2015, will serve as ShopKeep's Acting CEO. DeSimone joined ShopKeep in October 2015 as COO.

Under Merritt, ShopKeep experienced significant growth in both revenue and merchant adoption, it was noted. It also completed two key acquisitions: Payment Revolution for processing and Ambur for restaurant POS. During his tenure, the management team was further strengthened with the hiring of John Baule (CFO), Etie Hertz (SVP), and Andrew Gorrin (CMO).

"Norm has done a great job leading ShopKeep, taking it from an emerging start-up and making it into one of the leading business management and technology solutions for small businesses," asserted Dan Ciporin, General Partner at Canaan Partners and ShopKeep Board Member. "He was also a strong recruiter and the leadership team he's built will keep the company on its current trajectory. We support Norm in his decision and wish him the best of luck."

Norm Merritt, Former CEO, Leaves ShopKeep

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