AIM-listed payments firm DataCash has joined an IBM-led consortium that is developing a Chip and PIN payment terminal for rental by the mid-tier retail sector.
The deal represents a significant breakthrough into the high street market for DataCash which up until now has focused on processing 'cardholder not present' online transactions.
Chip and PIN is designed to prevent fraud by obliging consumers to use a secret PIN when they use their credit cards to purchase goods in the high street. Many of the country's big retailers, such as the supermarkets, are already installing the technology but there is strong evidence that smaller, mid-tier, traders are finding the cost of upgrading legacy software systems and hardware too expensive.
The initial team, led by IBM partner The Triangle Group and including Ingenico and Kilrush Consultancy, is offering a complete solution for a fixed monthly charge of around £25 per terminal. The package consists of consultancy, hardware, software, implementation and payment processing.
DataCash has been invited to contribute its outsourced payment processing and fraud management capabilities. Value-added services already available to DataCash retailers online, including Dynamic Currency Conversion, stored value, gift card and mobile top-up, will also be offered on the high street.