Traditional embedded payment systems require two separate components: one for the user interface and another for payment processing. This article explores how integrating payment capabilities directly into the human-machine interface (HMI) reduces costs, saves space, and creates a better user experience. We examine SECO's approach that embeds NFC payments into the HMI, enabling manufacturers to create more elegant, cost-effective solutions while unlocking new revenue opportunities.
In today’s self-service economy, payment solutions are becoming ubiquitous—from vending machines and self-checkouts to parking meters and EV charging stations. Yet, many of these systems still rely on a clunky two-box approach: one device for the user interface (UI) for operating the machine and a separate payment terminal. This traditional setup creates complexity, increases costs, and frustrates users.
The Two-Box Problem: Why Traditional Payment Solutions Fall Short
The traditional two-box approach emerged as a solution to the specialized requirements of payment processing, which many OEMs were not equipped to handle. While this separation addressed critical design challenges, it introduced several new problems:
- The cost of payment terminals can range from €200 to €1,500. This not only increases upfront hardware expenses but also complicates system integration and maintenance.
- Two-box solutions are typically bulky with inelegant designs—adding unnecessary clutter to machines and kiosks and take up valuable real estate.
- When payment systems and the main interface operate separately, there is the risk of a fragmented user experience. For example, loyalty program or stored payment methods can require additional steps, creating friction, long waits, and delayed payments.
- OEMs have limited access to transaction data, making it harder to optimize pricing, user interactions, and business models.
The Solution: SECO + Nayax for an Integrated, Compact Payment System
To solve these problems, SECO, through a collaboration with Nayax, has introduced Payment for OEMs. This integrated payment solution includes a compact contactless NFC/RFID card reader (called Modular Pay Mini) along with a payment processing platform and associated software development kit (SDK) for managing payments within edge devices. It provides a complete package that streamlines the development and ongoing management of payment-enabled systems.
The Modular Pay Mini can be embedded within other electronic subassemblies, simplifying system design and integration as well as providing a streamlined look and feel to the end user. For example, SECO has integrated the Modular Pay Mini payment terminal directly into a touch display front panel assembly, yielding a seamless appearance while eliminating separate openings and enhancing protection against water ingress.
The EMVCo-certified card reader operates in two modes: pass-through mode, functioning like a traditional NFC reader, and payment mode, enabling fully open loop payment processing with support for global card payment systems, including Visa, Mastercard, and American Express.
On the software side, the Payment for OEMs API integrates into SECO’s Clea OS, a Yocto Linux-based release architected to facilitate internet of things (IoT) applications, ensuring seamless connectivity with the payment processing backend. SECO’s Clea software suite, utilized for at-scale IoT infrastructure deployments, further enhances these capabilities with cloud-based fleet and device management and cloud connectivity features, as well as a unified payment dashboard. With Nayax as the payment processing partner, our payment for OEMs is deployable in more than 80 countries.
Key benefits of this integrated approach include:
- Compact design: Eliminates separate terminals, enabling sleeker, space-efficient products ideal for vending machines, parking systems, and self-checkouts.
- Cost efficiency: Less expensive than standard NFC readers, reducing both upfront hardware and long-term maintenance costs.
- Seamless user experience: Integrates payments into the HMI, streamlining loyalty programs, stored payments, and user authentication.
- Simplified management: SECO’s Clea dashboard will soon enable remote payment management, software updates, and real-time system monitoring.
- Enhanced data access: Comprehensive transaction data helps OEMs optimize pricing, boost user engagement, and explore new business models.
- Payment-associated service revenue: Enables vending operators to earn a share of payment processing revenue. Traditionally, only the third-party payment processor achieves this revenue.
Transforming Embedded Payments in Everyday Applications
Payment for OEMs with the Modular Pay Mini reader modernizes embedded payments across a wide range of use cases. For example, vending machine operators benefit from lower costs and a smaller footprint while enabling loyalty program integration and frictionless transactions.
Or consider EV chargers in a corporate garage. Modular Pay Mini makes it easy to offer different options to different users: guest users can pay via credit card, while employees can continue using RFID-based company IDs.
The Modular Pay Mini reader allows businesses to build significantly smaller machines than current solutions, making it suitable for a wide range of applications such as parking, ticketing, and more. One example of its versatility is the integration of license plate recognition with parking solutions, where the system removes the need for separate kiosks or card readers. Customers simply drive up to the barrier, present a credit card, and the car’s license plate number is recorded. When leaving the car park, the system recognizes the number plate, calculates the parking fee, and charges the customer directly.
The scenarios where Payment for OEMs is the right option for embedded payment solutions are practically limitless. As the demand for self-service becomes the norm, businesses and consumers benefit from seamless transactions.
Conclusion
The two-box system approach to embedded payment systems is obsolete. It’s too expensive, bulky, and inflexible. And an outdated solution with a disjointed user experience can frustrate customers who might not complete their transactions. For machine integrators and operators, who need to minimize deployment costs and maximize revenue, the lack of integration and ability to earn payment transaction processing related fees results in suboptimal business models.
Payment for OEMs with its Modular Pay Mini reader and SDK solves these problems with a truly integrated payment solution. Its smaller, more elegant form factor, plus lower costs and better control over transactions combined with machine operator payment revenue sharing give OEMs new business opportunities tied to the embedded payment world.
Ready to take your payment systems to the next level? Contact SECO today.