ON THE SPOTHospitality Solutions

Bulent OzayazGeneral Manager, Wireless Solutions, North America

Market Size & Market Drivers

What is the restaurant market need?

1. Fraud prevention

2. Online PIN debit conversion

3. Operational efficiencies

• 405,000 outlets

– Shift from 405,000 re-programsto 1,880,000 new terminal sales

Full service restaurantvertical estimates

Solutions Overview

What is ON THE SPOT?

ON THE SPOT is VeriFone’s

solutions for payments at the

point of service for restaurants

and hospitality locations. It’s about bringing

secure, efficient payment solutions right to the

spot of the transaction.

ON THE SPOT Solution Comparison

ON THE SPOTIntegrated

• Integration with restaurant management system (RMS)• Components:

– Vx 670 WiFI– ServPOS payment UI software– ServPOS server middleware

ON THE SPOTManaged

• Consolidation through VeriFone ManagedServices portal

• Components:– Vx 670 WiFi or GPRS / NURIT 8000 GPRS– Optional Vx 570 Ethernet (bar or check out area)– ServPOS software package (payment UI & reports/admin)– VMS Portal account– VeriFone Connect Networks

ON THE SPOTStand-Alone

• Direct to host model. Each terminal is independent• Components:

– Vx 670 WiFi or GPRS– ServPOS software package (payment UI & reports/admin)

Hardware has exclusive features appropriate for the restaurant environment

Ergonomic handgrip design

Moisture-resistant display & keypad

Moisture-resistant magnetic stripe enclosure(patent pending)

Bottom loadingprinter

Purpose-Inspired for Hospitality

International certifications

MC PTS

Integrated

• RMS middleware is optional• Integration benefits:

– Print itemized receipts from RMS database– Direct access to table and ticket data, no double keying– Closes out tab upon complete payment, eliminate double

entry at POS– Payment reporting fully integrated

ON THE SPOT IntegratedIntegration with Restaurant Management System

Vx 670 Software

Front of House

Restaurant Management System Server(RMS)

RMSAPI

IP Gateway

Credit / Debit

Module

ServPOSServer

Middleware

Terminal Middleware

Comm Server

ServPOS UI

RMS

802.11b WPA PSK

In-store LAN

Processor

RMS Penetration Strategy

• Micros - Res. 4.1• Radiant/Aloha – Version 5.28+• Positouch – Version 5.32+• OnePOS • Order-Matic• Maitre D’• Digital Dining• PC America• Posera

Strategic RMS Interface Development

Managed

• Consolidation through web based management portal

• Components:– Vx 670 WiFi or GPRS / NURIT 8000 GPRS– Optional Vx 570 Ethernet (bar or check out area)– ServPOS software package (payment UI & reports/admin)– VMS Portal account

ON THE SPOT Managed

1. Ticket information entered into terminal2. Payment completed on terminal, passed to VMS portal3. VMS Portal consolidates txns and delivers to processor4. Processor authorizes/settles based on one TID

Credit/Debit

Gift

802.11b WPA PSK

SSL Frame Relay

Key Solution Benefits

• Simplified / cost effective path to full PCI PED compliance!!• Increase payment options

– Debit at table ROI is large driver– Current beta installations experiencing 35% – 40% debit conversion success…

with limited/no store level marketing

• Terminal/transaction consolidation– Portal manages all terminal and transactional information– Remove necessity to settle each individual device– Restaurant wait staff can use any device (e.g. initiate tab on Device 123 and

close tab on Device 456)– Duplicate checking supported to eliminate unnecessary duplicate transaction

• Real-time reporting– Reporting supported on both portal and terminal– Expedites “end of shift” balancing for wait staff

• Centralized configuration management– All terminal software downloads are generic– Customer specific terminal configurations managed from portal– Automation of application downloads to eliminate merchant intervention

(in development)

Roll Out Success

Key Pilot Statistics

• Online PIN debit usage increased from 29% to 39% within first 2 weeks of pilots program and remains near 40%

– This has been accomplished with no visible marketing of debit acceptance at site

• Average online PIN debit transaction near $40

• Merchant credit/debit volumes ranging from 1000 – 2500 txnsper month

• Online PIN debit conversion reduces to 10 – 15% as average ticket approaches $75; however, savings can be dramatic

• Estimating credit and debit buy rates, merchants have already saved between $100 and $400 by converting portion of transactions to debit

Processor verified results:– Pizza restaurant (dine-in/delivery) saved more than $300 per month during pilot

ramp up– Restaurant management quickly rolling out solution to additional chain locations

Stand-Alone

ON THE SPOT Solution Comparison

1. Ticket information entered into terminal

2. Payment completed on terminal, passed to processor

3. Processor authorizes/settles based on one TID per terminal. NO consolidation.

ON THE SPOT Stand-Alone• Direct to host model

• Each terminal is independent

• Components:– Vx 670 WiFi or GPRS– ServPOS software package

(payment UI & reports/admin)

Competitive Landscape

Solution Type

Integrated

Managed

Stand-Alone

Where is your hospitality opportunity?

• A near two-million device opportunity exists

• Business needs are real– Increased cardholder security

and PCI PED compliance

– Offer additional payment options

– Operational efficiencies

• Tools for your success– www.verifone.com/restaurants

– News clips

– Success stories

– Video solution overview

– Sales sheets