Commentary

Frictionless payment providers square off as post-COVID era unfolds

Image courtesy of iStock.

April 26, 2021 by Kevin Williams

(Edtior's note: This is part two in a two-part series on frictionless payment solutions.)

Every week seems to bring more news about frictionless payment solutions for route street and amusement center operators as venues scramble to serve the pent up demand as the health crisis cools, as noted in part one of this two-part series.

One company working hard to establish a strong presence in this emerging market is Semnox. The company offers a comprehensive cashless management platform, covering the varied needs of a venue, ranging from game, food, attractions and rides. The hardware focuses on combining RFID with the company's online platform and kiosk systems to achieve a convenient architecture for customers and operators.

This also includes the deployment of the company's own smartphone payment architecture, pointing to the new direction of frictionless payment. This convenience of adoption has seen the company celebrate several new customers making the switch to the Semnox platform.

In the U.K., operator Fantasy Island Amusement Park made the move to Semnox, which saw 50 outdoor and indoor rides, along with 400 amusement pieces, move across to the cashless platform with a complete suite of point-of-sale support through cards and wristbands, top-up counters and self-service kiosks, including food and beverage and merchandise sale support.

This system also supports the digital signage and promotional advertising element of the operation. One of the key factors of adopting this platform was Semnox's support in moving the venue to an electronic ticket model for the prize payment element.

Gametime goes cashless

Moving across to the States, Semnox welcomed its latest customer, Gametime, in Florida. The well-known entertainment brand operator took the plunge and consolidated all of its sites to the cashless payment infrastructure — using a single RFID-based management system.

This system offers a unique frictionless approach, needed in these post-COVID times, with a "tap-to-play" infrastructure, self-service kiosks and online e-commerce functionality.

Looking further afield, Semnox has been instrumental in the Indian entertainment diaspora, with a new installation with Fun City. The family entertainment center chain, with over 30 locations, made the move to the company's "Smartfun" app. This is a smartphone app that offers all the functionalities of a card payment system, including managing and rechanging while reducing time in queues and therefore increasing play time.

Stored value/loyalty rewards option

One of the developers looking at the wider landscape, Core Cashless, has developed a stored value card system, along with wristband and mobile wallet. The value card acts as a loyalty points incentive for encouraging specific behavior or spending — rewarding bonus points to encourage guests.

Core Cashless has seen several venues adopt its platform into their operations. Representing some three sites in Texas, Hawaiian Falls Water Park has embraced the opportunities of cashless operation, installing unique unattended wristband dispensing kiosks. These wearables comprise stored value and facilitate payment and access throughout the stay at the parks, ranging from food and beverages to various concessions. Food and beverage orders facilitate through kiosks, then are collected at concession areas. Cashless payment systems in the water park sector have been a game changer.

Core Cashless hardware and software infrastructure has also been applied by Cowabunga Bay in Las Vegas. Instead of having fixed points of sale like stationary POS and kiosk stations throughout the park, Core has developed unique mobile POS terminals for the staff of the venue, helping directly in facilitating food and beverage purchases by the guests.

Site operators can create their own unique "currency" just for their own location, adjusted to their unique offerings. The company has also adapted to other needs of the changed market, having launched its "Paydia" temperature screening stationary kiosk.

Smartphone-only payment emerges

Upheavals in the Japanese factory scene have seen an appearance of new smartphone-only payment systems trying to break the All.net monopoly. The All.net monopoly is linked to not just the controlled distribution of content, but also to the associated revenue sharing that this platform supplies to the supporting cabal. It is a stranglehold that some amusement and entertainment venue operators in this territory want to extricate themselves from.

In China, FECs and UECs have adopted their own smart payment, such as the popular "smart card system," including NFC readers and FEC management software. Also in China, most operators incorporate the adoption of the ubiquitous Alibaba's Alipay and Tencent's WeChat Pay systems into their mix.

The market will eventually revert to a universal platform that will be incorporated into one of these pay platforms.

Contactless gains clout

Some operators are keen to embrace NFC and contactless payment systems. And, along with Asian operators, we have seen special conversion systems that simply and effectively allow amusement pieces to accept payment in this manner.

Most famous is Payrange — this system can be fitted to an existing amusement and vending unit in seconds and facilitates mobile payment through the platform. Facilities such as the social bowling chain Pinstripes have seen their amusement machines employing this system.

The new generation of smart card readers are also starting to incorporate a NFC capability to ensure they stay current, as mentioned previously from Intercard and Embed.

One aspect that has often been overlooked has been the adoption by our cousins in the vending industry, who have advanced the adoption, first with bill acceptors and now with full contactless payment platforms. This has migrated even into the deployment of contactless payment systems on kiddie rides, removing the need for coinage.

What were described as "tap and ride" systems use NFC to allow payment through credit card, mobile payment like Apple and Google pay, and even QR codes. Machine operators in malls and retail environments are fielding contactless readers such as the Nayax VPOS Touch and Onyx devices, offering a versatility of options and modern design. The danger being that traditional amusement operators may be left far behind.

These are just a sampling of frictionless payment solutions that have found traction in response to the COVID-19 pandemic.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by KWP and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

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About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

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