News

7-Eleven commits to 1,000 more Vcom kiosks

July 8, 2002

DALLAS and DAYTON, Ohio -- Convenience store retailer 7-Eleven today announced a three-year, multi-million-dollar extension of its relationship with NCR, saying that it will begin adding more of the Web-enabled kiosks it calls Vcom to 1,000 stores later this year, launching a business it refers to as "a virtual store within a store."

The agreement calls for 7-Eleven to use NCR's Convenience Connexions solution and includes the purchase of 1,000 NCR Personas 78s, APTRA software and a complete set of services and support to expand Vcom, which has been tested for the past year in 98 7-Eleven stores in Texas and Florida.

Bob Tramontano, NCR's vice president of marketing and sales realization, said the Vcom project is the single largest deployment to date of the Personas 78, which can retail for up to $50,000 depending on the options selected.

Because the agreement also includes software and service, Tramontano called it "a great example of a complete solution." He added, "Service is the way of the future. We've put a lot of time and effort into it."

While there are more than 50 APTRA applications around the world, most current customers are financial institutions which are focused on fine-tuning existing transactions such as withdrawals and deposits, Tramontano said. Retailers like 7-Eleven are different, he said, because "they really look to make the most out of their interactions with the customer."

Through exclusive agreements with its Vcom partners, 7-Eleven currently offers customers ATM transactions, check cashing through Certegy Check Services, a division of Certegy Inc.; and Western Union money order purchases and money transfers.

Calling Vcom "an important, new growth opportunity for the company," Jim Keyes, president and chief executive officer of 7-Eleven, said, "We developed the innovative concept, brought together industry-leading partners and proved through comprehensive testing that people want 24-hour access to these kinds of automated services."

Other Vcom offerings planned for the initial 1,000-store rollout are telecommunications services through Verizon Communications and e-shopping using Cyphermint's cash-payment technology. The Cyphermint technology, called the PayCash System, will allow costumers to use cash rather than a credit or debit card to make e-commerce purchases.

According to a CNET report, Cyphermint plans to charge online merchants a commission on products sold through the Vcom kiosks and will sell advertising on the machines. In addition, Cyphermint and 7-Eleven are considering charging consumers a $1 transaction fee for each purchase they make through the kiosks.

Keyes said that the Vcom services will help 7-Eleven expand its relationship with current customers and attract new ones. "Those who do not have traditional banking relationships or access to e-shopping will find a new level of convenience at their local 7-Eleven," he said.

In exchange for 7-Eleven granting its strategic partners the exclusive rights to offer their products through Vcom kiosks, the service partners pay placement fees, a percentage of the transaction fees and expense reimbursement.

According to 7-Eleven, it has received more than $220 million in placement-fee commitments from its other service partners, most of which are funded as Vcom kiosks are deployed. The retailer, which this week is in the midst of its 75th anniversary celebration in New York City, is in discussions with other potential partners to provide services via the Vcom.