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Tax kiosk wins Coinstar’s Next Big Idea contest

The redbox owner sees promise in a kiosk where consumers can file their taxes.

November 9, 2010

It doesn’t sound like much fun. But it does sound like a pretty good idea.

Coinstar Inc. today announced its “Next Big Idea” contest winner, a concept for a kiosk-like device where consumers could file their income taxes. In concept the kiosks would be installed in busy retail locations.

Coinstar’s Alex Doumani, vice president of engineering, announced the award at the Consumer Engagement Technology World conference in New York City. The CETW runs Nov. 10-11 at the Javits Convention Center. 

The creator of the device, and winner of a $10,000 prize, is Kyle Klansek, a sophomore majoring in business at Texas A&M University. Klansek couldn’t attend the show.

Coinstar felt Klansek’s ‘IRS kiosk’ fit its three criteria for a Next Big winner, explained Doumani. “It adds good, meaningful value; the concept serves a sizeable consumer market; and it is innovative, creative and different.”

One reason Coinstar created the contest was to ensure it was a center for new ideas in self-service, says Doumani. “We are always looking for creative ideas to add to our retail portfolio,” he said. “This is a way to look for those ideas.” 

Coinstar inaugurated the Next Big contest last year, awarding ecoATM its prize for a kiosk where consumers can recycle cell phones. Since then Coinstar took an equity stake in ecoATM and the kiosks are being piloted in a number of locations. 

Doumani said the tax kiosk concept fits a sector with great growth potential that Coinstar calls ‘pop-up’ retail. These are shops, or devices, that meet a large but temporary consumer demand, and then can be broken down and put away until the next time of need. Doumani noted that eBay garnered some publicity last year with such a pop-up store in Manhattan that primarily promoted the eBay brand.

And every October, “there are many pop-up stores that serve a significant consumer need centered around the Halloween theme, then go away,” said Doumani. “We see that this could be the same with the IRS kiosk. It has a large potential and it serves an attractive retail market,” he said.

Doumani didn’t provide details but the concept for the tax-filing device would be to install it at retail locations as April 15 rolls around. "Kyle showed ingenuity and ability,” said Doumani.

Doumani, who is moving over to become Coinstar’s vice president of technology, new ventures, says the IRS kiosk could fit in the growing market for self-service applications for government services. This year, several states have received positive reviews for installing kiosks where citizens could renew their driver’s licenses and conduct other activities at motor vehicle offices. In addition, a number of libraries are installing self-service kiosks that patrons can use to check–in and check-out materials.