| Electronic DistributionHow Electronic Distribution | | | | shrinkage is attributable to employees. Retail |
| WorksThe Problems of Distributing Prepaid Services | | | | employess often feel underpaid and rationalize theft as |
| with Hard (Scratch) CardsIntroductionOne of the most | | | | a way to make up for what they're owed. As prepaid |
| significant developments in the prepaid telecom | | | | wireless airtime cards often range in denominations |
| industry in the last few years has been the | | | | from $10 to $150, employees can easily conceal |
| emergence of electronic distribution technologies, such | | | | thousands of dollars of product in their pockets or |
| as Prepaid Wireless Direct point-of-sale activaton | | | | purses.Cards are also attractive because they can be |
| (POSA) will completely reconstruct the way in which | | | | easily converted to cash on the street by offering |
| prepaid services are sold.How Electronic Distribution | | | | them for sale at a discount of their face value. |
| WorksPrepaid Wireless Direct electronic distribution | | | | Because they're close cash equivalents, prepaid |
| systems enable any prepaid sevice to electronically | | | | wireless cards have become tantamount to an |
| transmit their services to virtually any retail location. | | | | underground currency in some places including Europe. |
| Prepaid Wireless Direct provides an integrated POSA | | | | Because of the proliferation of theft reduction is the |
| solution comprised of flexible and compact | | | | number one investment priority among convenience |
| point-of-sale terminal equipment, proprietary software, | | | | store executives.Additionally, each of the supply chain |
| transactional communications, protocols, and | | | | participants lacks efficient inventory controls and |
| professional services to assist retailers with | | | | reporting while battling fraud. Because of the difficulties |
| implementation.Once in the retail environment, | | | | they face, and retailers that sell traditional hard cards |
| consumers simply select a product from point-of sale | | | | are in dire need of cost-effective distribution |
| signage or displays and make the approprate payment | | | | solutions.Electronic Distribution SolutionsPrepaid |
| to the clerk who then inserts a wallet-sized thermal | | | | Wireless Direct products and services solve the |
| card into the POSA terminal. After pushing a few key | | | | distrbution problems of retailers that sell prepaid |
| corresponding to the desired product, terminal prints a | | | | wireless (mobile) and other prepaid services.Retailer. |
| prepaid PIN along with usage instruction on the card. | | | | Retailers are increasingly demanding electronic delivery |
| Prepaid Wireless Direct also supports PIN-less delivery | | | | for the significant benefits they derive.By delivering |
| whereby the terminal makes a real-time connection | | | | prepaid products electronically, on demand, with |
| service provider. A credit is instantly issued to the | | | | point-of-sale activation(POSA) techniques, Prepaid |
| customer's account. Within moments of purchase, | | | | Wireless Direct essentially allows any retailer to sell |
| customers can use services.The types of retail | | | | prepaid wireless or other prepaid service without |
| environments that are beginning to switch to electronic | | | | carrying any inventory. This eliminates prepaid |
| delivery include wireless shops, supermarkets, | | | | inventory costs that acted as enormous cash barriers, |
| conveience stores, check cashers, food marts, | | | | prohibiting many retailers from selling prepaid wireless |
| university shops, electronics stores, hotels and many | | | | or other prepaid services. What once tied up |
| more.The Problems of Distributing Prepaid Services | | | | thousands of dollars in inventory, now requires no up |
| with Hard (Scratch) CardsPrepaid Wireless Direct has | | | | front cash from retailers. Now virtually any retailer not |
| developed electronic distribution services to address | | | | only can afford to participate in selling prepaid services, |
| the many problems of distributing prepaid mobile and | | | | but also can expand their product portfolios to include |
| other prepaid services through hard cards. Hard cards | | | | phone cards, wireless, dail tone, credit cards, internet |
| are also known as scratch cards because the | | | | and more. In addition, they can also afford to represent |
| customer scratches a panel on the back of the card | | | | all of the popular prepaid wireless service providers in |
| to reveal a PIN or other secret code.The current and | | | | their areas.Also, because products are automatically |
| traditional distribution methodology of most prepaid | | | | replenished at POSA terminals electronically in PIN or |
| services involves the prepaid services involves the | | | | real-time formats, retailer never run out of inventory. |
| provider printing scratch cards, warehousing them and | | | | With Prepaid Wireless Direct POSA solution, retailers |
| fulfilling orders to distributors. The distributors purchase | | | | avoid the heavy costs of out of stocks and resultant |
| large quantities for providers, warehouse them and | | | | customer dissatisfaction.Once installed in a retail |
| fulfill retail orders. And retailers purchase the cards | | | | location, the POSA terminal virtually eliminates theft by |
| from distributors, manage the inventory and sell the | | | | retail customers and employess. Because only inactive |
| cards to consumers.Each participant in the distribution | | | | products are on display, retail customers can no longer |
| chain encounters problems with scratch cards.Retailer | | | | steal valuable airtime. And because all retail employees |
| Problems. Under today's traditional hard card distribution | | | | are assigned unique passwords required to accesss |
| format, most retailers struggle on several fronts to | | | | the POSA terminal, the system creates an audit trail |
| offer prepaid productsRetailer have a difficult time | | | | that details all sales activity by date, time, shift and |
| carrying the inventory costs of prepaid services. The | | | | employee. This audit trail provides a monitoring system |
| recent growth and popularity of prepaid wireless | | | | that virtually eliminates employee theft. With the POSA |
| intensifies the problem. With prepiad mobile, airtime | | | | system, retailer no longer need to count and reconcile |
| denominations are much more expensive the phone | | | | scratch card inventory amounts at the beginning of |
| cards that most retailers are familiar with. It's common | | | | every shift.POSA also reduces shelf space |
| for one prepaid wireless provider to offer 5 or more | | | | requirements and simplifies a retailers job by |
| different airtime denominations that range in price form | | | | consolidating all prepaid products into one convenient |
| $20 to $150 each. To make things worse, prepaid | | | | POSA platform. POSA delivers operating flexibility to |
| wireless airtime is carrier specific, meaning that Verizon | | | | the retail marketplace that traditional point of sale |
| prepaid wireless customers cannot top up (recharge | | | | products fail to provide.Retailers also have 24/7 online |
| or replenish) their accounts with AT&T, Cingular or any | | | | access to reports that show real-time sales activity by |
| other providers's airtime, and vice versa. This makes it | | | | each of their locations. Retailers can also print real-time |
| critical for retailers to carry airtime for all of the popular | | | | sales report directly for their POSA terminals. Reports |
| national and regional prepaid wireless carriers or | | | | can drill down to sales activity at individual retail outlets |
| operators in their area, something that retailers didn't | | | | by product, clerk, day, and time. Reports come |
| have to worry about with phone cards.Today there is | | | | standard but may be customized to match the |
| an average of six major carriers or operators offering | | | | retailers unique information needs. Retailers use sales |
| prepaid wireless in each of the top 20 U.S. markets. | | | | activity reports can also highlight sudden changes in |
| Trying to inventory product for all six could mean that | | | | sales at a particular location. Subsequent investigation |
| prepaid wireless alone could account for as much as | | | | often reveals a simple solution to boosting sales such |
| 25 percent of a conveience stores total in-store | | | | as replacement of signage that has been taken down |
| inventory costs. Many retailers simple cannot afford | | | | by a window washer. Timely awareness of problems |
| the cash outlay required to successfully sell prepaid | | | | and simple remedies often make a significant |
| wireless services.Retailer trying to minimize inventory | | | | difference to the amount of sales at retail.Prepaid |
| costs often create out-of-stock problems. In general, | | | | Wireless Direct is proud to be leading the way in the |
| stock outages cost the average retailer 6% of its | | | | electronic distribution of prepaid services through retail |
| sales, resulting in loss of billions of dollars every year | | | | environment. By delivering unique, industry-first features |
| and high customer dissatisfaction.To make thing worse, | | | | and benefits, while supporting a growing list of |
| today's airtime hard cards, also know as vouchers, | | | | platforms, methods, suppliers, and products. Prepaid |
| scratch cards, replenishment cards, recharge cards, | | | | Wireless Direct is poised to lead the electronic |
| and hanging cards, increase the likelihood of fraud. The | | | | distribution movement into the future. In addition to its |
| biggest problem seems to be at the point of sale | | | | current suite of products. Prepaid Wireless Direct |
| where easily concealed, high-value airtime cards can | | | | intends to introduce many more electronic product |
| be the target of both retail customers and employees | | | | delivery solutions as it continues to leverage the leading |
| alike. To prevent comsumer theft, retailers often put | | | | technologies to create cutting-edge, customized |
| cards under lock and key but still suffer losses due to | | | | products for emerging customer segments.Retail |
| employee pilferage. In the conveience store industry, it | | | | Licensing Provider of Bill Payment & Cellular Providers |
| is believed that as much as 80 percent of the store's | | | | Technologies. |