CASH TRANSACTIONS IN A MOBILE WORLD

A TECHNICAL OVERVIEW

Introduction Key to this model is the implementation of For two decades, the PC has reigned POS systems with agnostic components supreme over POS solutions, operating as that eschew proprietary technology in terminals that sit on counters favor of a universal, industry-standards and control various peripherals. However, approach. For instance, standalone, IP- the need for PC-centric solutions is enabled cash drawers provide the same waning as a more flexible POS model functionality and flexibility regardless of emerges. Leveraging cloud and mobile operating system, be it Win8, Android technologies, this model supports thin or iOS. Such components offer easy client and IP-enabled components such implementation and configuration, as cash drawers and printers, and isn’t opening opportunities to integrators and locked into a specific operating system. ISVs looking to offer thin, mobile systems to their clients. The new model is more affordable and manageable, and significantly improves From Cash Registers To PCs the shopping experience. It’s a mobile In the early 1970s, computerized POS world, after all, and tying the cash drawer solutions started replacing the cash to fixed POS stations no longer works in register, a 19th Century invention that is settings where retailers want to offer the now more likely to reside in a museum convenience of completing transactions than a store counter. In the 1980s, at the “point of decision” — literally the IBM introduced proprietary PC-based place in the store where the customer solutions. Early POS solutions were ROM- gets the item and makes the decision to based systems created by NCR, DTS, and purchase — instead of making shoppers IBM with touch buttons that replaced stand in line at a counter. cash register keys. In the early 1990s,

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CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW the first Microsoft Windows-based POS system entered the market and kicked off a POS revolution.

Numerous POS applications and solutions followed, introducing new levels of customization and functionality specific to the needs of retailers, (big-box, specialty, boutique or mom and pop,) and hospitality (QSR, table service and fine dining). At the center of the typical as tablets and smartphones. A recent POS solution is a fixed PC-based station Boston Retail Partners study found equipped with a cash drawer. The station retailers view mobility as a priority, with controls various wired peripherals — 52 percent planning to implement a printers, scanners and payment mobile POS solution within two years. card readers — connected to dedicated Another 19 percent said they plan to ports on the POS station through serial or deploy mobile solutions in two years or USB interfaces. more.

The PC for years has remained at the Thanks to the Internet, consumers center of the solution, effectively serving are accustomed to shopping in the as a computerized cash register and convenience of their own home, controlling the various peripherals. In and they want convenience at retail multiple-workstation environments, locations as well. Retailers realize they POS stations connect to a server at the can and need to improve the shopping backend. These typical setups can be experience by leveraging cloud and costly, especially for smaller retail shops, mobile technologies. Why make and in some cases require a fair amount customers queue up at a counter when of configuration. you can complete a transaction at the point of decision? For example, a sales POS Game Changer associate can initiate a transaction on a Today, a tablet revolution is taking tablet in a dressing room, accept a credit place, with the Android, iOS and Win8 card or cash, and complete the sale at operating systems leading the way. a strategically placed cash drawer for a The days of the “fat client” PC-centric mobile checkout experience. Using the POS solution are numbered, thanks to tablet, the associate can complete the cloud computing and the increasing transaction and print or email the receipt. capabilities of mobile devices such Shoppers who enjoy convenience and

CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW speed leave the store happier and are effective than the traditional POS. more likely to return for future purchases. Though prices vary, a typical “fat client” POS workstation costs around $3,000. This level of convenience and flexibility A five-unit rollout would cost $15,000, a is hard to achieve with a POS system hefty price tag for a small retailer. constrained by fixed workstations. If In comparison, a five-unit deployment components such as cash drawers, with $400 tablets costs under $2,000, and printers, and barcode readers are IP- the units are easier to use and have a lower enabled and communicating wirelessly, replacement cost. Of course, components there’s nothing stopping a merchant such as cash drawers and printers carry from offering this kind of flexible service. their own price tags, but being IP- Store clerks can run transactions from enabled, fewer are needed because they thin-client tablets or smartphones. Where can be shared. Assuming two IP printers required, security cameras and digital and cash drawers are deployed, the cost signage displays can be integrated into of the same five- “station” POS system the POS system, creating a compelling would be closer to $3,000. and secure customer experience Besides lower costs, IP-enabled POS systems have another advantage — familiarity. Users of tablets and smartphones require less training for similar devices in the workplace. Furthermore, a mobile POS lets retailers stand out from the competition by improving the shopping experience, translating to higher customer loyalty.

The Right Partner POS systems with thin clients and IP A new POS model, “Thin-bility” is components aren’t for every setting. emerging. It combines thin client, Big-box retailers, category killers and mobile and cloud-based technologies to supermarkets will continue to need fixed deliver affordable, scalable, reliable, and checkouts, but they can leverage mobility secure solutions for flexible, convenient in specialty departments, such as shoes, shopping. As merchants, restaurateurs electronics or specialty wine/cheese. In and hospitality operators become boutique and specialty shops, where a lot attuned to the model and its benefits, of interaction takes place between clerk they start demanding Thin-bility systems and patron, this new model is sure to gain from their suppliers. Integrators and traction. ISVs that cannot support the model are turning their backs on new business. Affordability And Familiarity The new, thinner POS model is a viable Instead, they should be identifying POS alternative for deploying fully functional devices and vendors that offer maximum POS systems that are far more cost- flexibility and simplicity in building

CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW systems. One such vendor is APG Cash Drawer LLC, which leads the industry in IP- enabled cash drawer innovation, offering multiple configurations, sizes and colors for use in a range of industries, including retail, hospitality, restaurants and convenience stores.

IP-enabled cash drawers are fundamental to the Thin-bility approach, releasing businesses from their dependence on expensive PC-centric systems and tablets, PCs and printers — an approach delivering new levels of functionality to that differs from the PC-centric model. any environment where cash transactions take place. APG’s fully customizable NetPRO™ drawers are compatible with IP drawers connect to other system wired or wireless Ethernet subnets and may components via wireless and wired be engaged by any IP-enabled workstation Ethernet. The APG NetProTM Model 480 or tablet on the same subnet. Developed series supports WebSocket Protocol and as an agnostic device, the NetPRO™ cash API methods, making the drawers drawer is not dependent upon a specific OS. compatible with browser-based APG designed the NetPRO™ cash drawers applications — a feature tailor- to run without a driver by leveraging made for retailers interested in the TCP (Transmission Control Protocol) managing systems through a Socket facility provided by every IDE web interface. (Integrated Development Environment), including Java, Microsoft Visual Studio, NetPRO™ cash drawers capture iOS/Python, Android and Cold Fusion. and store transaction data that This makes installation and configuration helps identify security issues and a straightforward process requiring no determine if cashiers are properly complex integration work, which can bog trained. Programmable features down POS implementations. and reporting capabilities in APG’s IP- enabled cash drawers create a wealth of Further, the NetPRO™ cash drawer need recurring-revenue service opportunities not rely on legacy software standards and for POS dealers, helping them to add tools, such as UPOS, which were originally value and boost profits. designed to serve the host/peripheral hardware architecture. In fact, when the APG’s Agnostic Approach NetPRO™ cash drawer is deployed in a truly APG’s NetPRO™ line of IP-enabled cash thin setting, OPOS and JavaPOS drivers drawers make thin client and mobile become cumbersome to implement and hardware architecture a reality, providing to maintain. an ideal fit for developers and integrators building Thin-bility systems, regardless of When ordering a NetPRO™ cash drawer, the OS environment they use. The cash developers and integrators can specify drawer is a standalone device and acts as a configuration domain or accept APG’s a peer to other POS components, such as default. APG employs TCP Socket protocols

CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW to expose cash drawer functionality. requests from POS software During installation and configuration, through a simple, standard when the cash drawer is connected to a network socket. subnet, it is discoverable and configurable through the UDP (User Datagram Once a TCP connection is Protocol) transport control. Once the established, the POS application drawer is discovered, depending on the can control the cash drawer using a list specific needs of their clients, integrators of instructions in the APG NetLib Cash and developers can programmatically Drawer Command library. The library assign domain properties to DHCP or consists of a simple, self-descriptive set static IP, subnet, and gateway or via the of commands that enable cash drawer APG a Discovery and Configuration Utility. functionality. TCP connections, once established, persist and will ensure a 1:1 The NetPRO™ cash drawer uses both UDP connection because the cash drawer is and TCP protocols for specific purposes. configured to send keep-alive packets Cash drawer discovery and configuration that preserve connection status. are performed via UDP, and cash drawer control (opening, status reporting, etc.) Control And Flexibility is performed via TCP. Once configured By definition, IP-enabled devices can for the environment, the NetPRO™ cash be controlled from any location. This drawer responds to TCP connection applies to the NetPRO cash drawer,

CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW which connects via TCP with other IP determine if the exception was legitimate devices, including listeners configured to or ill-intended. The same goes for when a capture exceptional events at the drawer. drawer is unplugged or moved — or if it is opened by someone who is assigned to Consider a scenario in which the drawer a different drawer. After reviewing data is programmed to open only when about exceptions, managers can take a sales associate is nearby. A appropriate corrective action. barcode on the drawer’s front panel ensures the associate is in The NetPRO cash drawer can be close proximity before opening. programmed to issue real-time alerts. When the associate logs a sale For instance, store operators can receive on a tablet anywhere in the instant email or text alerts when someone store, and the customer wants opens the cash drawer manually or leaves to pay in cash, both must walk it open too long. Having instant access to to the cash drawer to complete these types of events can help with loss the transaction. The drawer prevention. is programmed to open for a predetermined amount of time. Conclusion If the associate takes too long, The future of POS is mobile and the drawer closes on the assumption the thin. Wherever cash transactions associate is no longer nearby. To reopen, take place, IP-enabled cash drawers the associate must scan the barcode with linked to other IP components ensure an ID. flexibility and convenience. With its agnostic, straightforward approach to If an associate opens a drawer manually implementation and configuration, APG with a key, in contravention of store is helping ISVs and integrators leverage policy, the system captures the exception this paradigm shift to open new revenue for review by managers who can streams and add value.

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CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW About APG Cash Drawer, LLC

APG manufactures a broad range of high-quality cash drawers and other related products for thousands of customers throughout the world. During its 35+ year history, APG has built a reputation as the supplier of choice for highly durable and dependable cash drawers. To learn more about APG products, visit http://www.cashdrawer.com or call 763-571-5000.

CASH TRANSACTIONS IN A MOBILE WORLD — A TECHNICAL OVERVIEW