Photo Kiosks Give Retailers A Payment Challenge
US consumers spent USD 8.2 billion on digital photo printing in 2004, according to the Photo Marketing Association, while Kodak reports that kiosk printing grew by 356 per cent that year. By 2007, Kodak predicts 10.7 billion digital photos to be printed, with kiosks accounting for 37 per cent share of this market, up from 33 per cent at present. Of the 1.9 billion digital images printed in 2004, Kodak estimates that 57 per cent were processed at home, 33 per cent at retail locations and 10 per cent via online services, which shows that consumers are open to multiple channels.Payment systems are however a challenge for retailers installing digital photo-processing kiosks at their stores, with security and credit card authorization among the primary concerns. A Fujifilm representative suggests in a recent New York Times article that most retailers providing photo kiosks in-store would prefer customers to pay at the counter since a kiosk may not be linked to a storeÆs POS system. Credit card acceptors can be attached to kiosks, but in cases where a kiosk is owned by a manufacturer and not a retailer, revenue-sharing may become a contentious issue.
Many retailers password-protect standard photo kiosks to prevent customers collecting prints and leaving a store without paying, but this approach defeats the entire concept of self-service. Credit card-enabled kiosks however benefit retailers by securing payments before photos are actually printed and reducing lines at store counters. Retailers whose kiosks are equipped to accept payment cards can also sell prepaid cards to provide another payment option, establish new revenue streams and build a case for customers to return to their store for future photo-processing services. Related Links:
7-Eleven Offers Digital Photo Printing At The POS
Global Kiosk Sales Totaled USD 492 Bn In 2004
