Smart Transaction Systems, a provider of gift card, customer loyalty and stored-value card payment systems, has selected Hypercom's Mobile Network service to extend the reach of its gift and loyalty card programs to mobile.

STS will use Hypercom's Mobile Network service in combination with handheld wireless point-of-sale terminals to allow mobile merchants, sports events and outdoor venues to accept gift cards or customer loyalty cards anywhere that cellular GSM/GPRS service is available. Short-term solutions are available for festivals, concerts and events.

"Sports venues, outdoor events and other short-term events can easily activate a mobile account for use with mobile gift card programs and customer loyalty programs and control the accounts that are activated,"said Ray Clopton, Boulder, CO-based president of Smart Transaction Systems. "Hypercom was by far the most responsive of the potential partners we looked at.

The Staples Center, home of the NBA's Los Angeles Lakers and Clippers, and MLB's Angel Stadium of Anaheim are using the STS platform.

"We tie our customer loyalty programs in with mobile marketing programs that include SMS, email or what have you,"Mr. Clopton said. "VIP club members get special discounts to, for example, a special concert this Friday that's sold out, or alerts from airlines to fill empty seats.

"As far as the pro sports teams we work with, they traditionally accepted gift cards at their pro shops, but not necessarily at concessions stands,"he said. "We have outdoor terminals, and the card can be used for food, t-shirts or other concessions-stand items.

STS also has also successfully completed certification testing on Hypercom's Optimum T4200 and M4200 multi-application countertop and mobile terminals including the T4210, T4220, T4230 and M4230.

Merchants may use any of these models to process STS gift and loyalty transactions, or for check verification and credit card processing from a provider of their choice.

"Before, during and after an event, the event manager can send text messages to loyalty customers who've opted in to receive those promotional messages, or during event, they can send a mobile coupon for 20 percent off at the hot dog stand, or pick up a ticket on your way out for a discount,"Mr. Clopton said. "There's a lot of room for creativity, using mobile to get messages to consumers in real time.

"It's a great way to drive promotional messages going out to attendees,"he said. "Event managers or venue operators will create loyalty program much like a retailer, with incentives for fans and frequent shoppers, who will be entitled to special offers and discounts for opting in.

"They can get messages out to their best customers, or get different types of messages to different types of customers.

STS has 5,000 merchant clients in U.S., and is currently expanding internationally with a focus on the sports and entertainment industries and outdoor events such as music concerts.

"We're expanding into quite a few countries internationally where gift cards are just starting to catch on,"Mr. Clopton said.

Smart Transaction Systems can now activate wireless terminals on GSM networks in more than 90 countries using 200 networks.

This will help STS to better serve merchants in countries where landline services are very limited but cellular service is widely available and affordable.

Smart Transaction Systems and its resellers will market Hypercom's mobile services in combination with its gift and loyalty programs that work across many platforms ranging from brick and mortar stores to online shopping carts and outdoor venues.

Merchants may also use the STS system to allow their gift or loyalty cardholders to access their accounts online or check their balance by phone using their STS interactive voice response system.

Founded in 1998, Smart Transaction Systems provides card-based payment systems and customer loyalty programs to organizations worldwide.

For small to medium-sized businesses, Smart Transaction Systems provides hosted gift card and loyalty programs that are reliable, easy to use and affordable.

For larger organizations, the company provides transaction processing systems that allow these organizations to bring gift, loyalty and private-label credit card programs in-house to gain maximum control of these programs.

Global payment technology leader Hypercom Corp. delivers a suite of high security, end-to-end electronic payment products and services.

The company's services address the high-security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick-service restaurants and consumers in the transportation, petroleum, healthcare, prepaid and unattended markets.

With its acquisition of Thales e-Transactions business in 2008, Hypercom became the second largest provider of electronic payment solutions and services in Western Europe and the third largest provider globally.

"Hypercom Mobile Network specializes in POS terminals and mobile dial integrated IP systems, and we're focused on the merchant market,"said Scott Goldthwaite, vice president of global solutions for Hypercom, Scottsdale, AZ. "We put a mobile network together for our customers who purchase our other products, making certification and implementation much easier.

"STS has taken a hold of our terminals and development kit, which helps power their applications and get connectivity,"he said. "We serve customers in over a 100 countries, including financial institutions, electronic payment processors, retailers, restaurant industries and petroleum companies.