PayWave Technology: Enhancing Customer Experience
Organizations that adopt information and communications technology (ICT) for their business objectives are often able to enhance their performance and overall productivity in many functions including innovation, customer service and cost reduction (Linton, 2017). An information and communications technology (ICT) structure provides support for these enhancements by making it stress-free for establishments to interconnect, share resources and information and integrate business processes. It is therefore necessary that businesses continually adopt information technology (IT) technologies for continual improvements in business functions which overall increases business productivity. This report introduces Oz supermarket a newly introduced retail chain. Oz Supermarket already has cut off customer queues by introducing a PayWave Technology. The report will outline the benefits of utilizing the technology for both the customers and the business per se. Radio-frequency identification (RIFD) technology will also be discussed and its challenges in the business noted. This report will also outline the supermarkets business operations and suggestions to improve on the same by proposing measures to improve customer services and business operations.
Oz Supermarket is a newly introduced retail chain in town. Oz Supermarket stocks non-perishable, household and stationery goods only. The supermarket does not accept cash money and is set up to work in such a way that, customers do not make queues in the store but come in, pick the required items and leave. This has been achieved through the use of PayWave technology. The only exceptions involve children and tourists who are usually issued with a store card that enable them to shop like other customers. When a customer wants to shop at Oz, they only need to wave their card at the entrance after which they allowed in. Once inside the supermarket, they can go ahead and pick shopping and put it in their items inside the trolley. The trolleys have been embedded with a Radio-frequency identification (RFID) technology that automatically queues items put in the trolley by the customers. In case a customer’s removes an item that was put in the trolley, it is automatically deleted from the queue. Once the customer is done with shopping, the total is deducted from the customer’s card as he / she exits the store. No place does the customer make queues at all.
PayWave technology is one of the payment services technology where a credit card holder only waves it a reader at a distance of about 4cm without the need to swipe it or enter a pin or a signature (Elley, 2012). It allows holders to wave and the card information is transmitted into a POS terminal. The PayWave credit card is usually embedded with a near-field communication (NFC) chip that allows information transfer (Elley, 2012). The credit card is also embedded with a radio antenna that sends radio frequencies and permits contactless payments (Elley, 2012). A lot of retailers are taking on this new payment method, to reduce waiting queues and cash handling.
RFID Technology: Challenges and Benefits for Oz Supermarket
No need to carry cash for customers that easily get lost or be stolen before reaching the retail shop
PayWavetechnology offers convenience and swift checkout payments means no queues which are traditionally time consuming
By means of a PayWave credit card customer is able to shop very fast and doesn’t need to swipe or perform card insertion in a point of sale (POS) terminal, no pin or signature is required.
Enhanced security since there is no need to hand over card to the supermarket’s tellers
Apart for small transaction fees PayWave credit cards are not charged extra
No pin or signature is required to process payment since the PayWave cards use near field communication (NFC) recent chip technology that comes with secure encryption mechanisms
Increased sales and general business productivity
Enhanced customer satisfaction and retention
Safe and secure means of transacting customers purchases
Decreased hacker attacks and threats who steal data and information by card scanning because of the near field communication (NFC) credit card utilization that uses secure data encryption procedures when transferring information
Radio Frequency Identification (RFID) is a wireless technology that utilizes radio signals to automatically identify objects within an assured nearness (Darcy et al. 2011). Radio-frequency identification (RFID) simply uses electromagnetic fields to detect, find and track tags attached to objects. This tags usually hold electronic information. In case of Oz Supermarket, the tags hold information such as item name and price.
RFID systems utilizes electromagnetic waves which easily causes transmission jam
Reader crashes occurrence when more than one signals collide in card readers or when there is a signal overlap
It is possible to read RFID tags at more greater distances with a high quality cameras which can pose a problem for the retail store
RFID is expensive to install and maintain therefore increasing store expenses
Every retail shop requires operational and strategic procedures for increasing sales, improving marketing strategies and managing business operations (Doward, 2012). The market place nowadays is driven by customers and customer satisfaction and experience is increasingly becoming a major discipline for establishments that want to stay ahead of competition (Beaujean et al. 2006). Over 70 percent of purchasing power is based on buyer feelings in terms of how they are being treated in the businesses (Beaujean et al. 2006). Therefore, understanding customers in terms of their shopping behaviors as well as understanding developments in the retail markets plays a major role in establishing an important foundation on which to provide a successful customer relationship management, where customers become content and satisfied (Doward 2012). In such a case, businesses also find themselves in a position where they are able to satisfy and maintain customer needs. The following are procedures that Oz supermarket can employ to increase their customer base and maintain it.
Improving Customer Services and Business Operations
The management together with the sales and marketing department at the supermarket need to assess whether their customers are satisfied with the current products and services offered at the supermarket.
Oz can look into ways of training the store employee to better engage with the store customers (Aswani, 2015). Customers tend to always go back to business that look into issues that affect them and that treat them with kindness and respect. Employees dealing directly with customers need to inquire how customers feel about their products and services. After receiving customer feedback, which is the data pinpointing areas that are in need of improvement, employees should go ahead and improve on these areas. This in turn will lead to high customer satisfaction and loyalty (Doward, 2012).
Oz Supermarket needs to incorporate strategic plans based on their customer base including providing quick responses to customer feedback that come through phone, mail or on the digital media. A Forrester study done recently indicated that about 41percent of online clienteles that checked product prices using their cellular phones usually ended up buying at other different retailers (Aswani, 2015). This is usually as a result of customer feedback and queries being ignored. Business should know that customers nowadays are using their internet enable phones to check services and products online. The online platform has become very active in actualizing business operations and business that want to increase and maintain their customers should ensure they satisfy them in all interaction platforms. Customer insight allows for more informed decision making based on hard facts (Aswani, 2015). This will help Oz Supermarket be able to enhance their products and services and therefore increase general productivity at the same time retaining and increasing their customers.
Decrease card payment processing costs
Oz Supermarket may need to evaluate their credit card processing prices by investing time to comprehend all the fees involved in handling payments. This will enable the business to look into opportunities where they can lessen transacting costs (Rodriguez, 2014). Oz Supermarket financial department can check with the service providers and inquire about the particular charges for the transactions so that they can understand the figures but appears in your monthly statements. Comparisons with other similar service providers can help the business opt for the less costly options so as to reduce on business expenses. Where possible the supermarket can utilize technology to decrease overall costs of generating financial reports (Rodriguez, 2014).
Reducing Card Payment Processing Costs
Decrease information technology (IT) purchasing and maintenance costs
Oz Supermarket management together with advice from the information technology (IT) department should regularly review the technologies and tools in use at the store. Remove the not needed tools and technologies and don’t buy software’s that are not very necessary for the business. If the business is using old software systems, including obsolete point of sale ( POS) software, that needs improving and is actually proving pricier to retain and provides fewer profits, it would be better to change and go for one that will improve business operations and productivity.
The supermarket can arrange with their telecommunications and internet service provider to see to it that they are using paying for manageable internet plans or whether the providers have introduced other services that would lessen the business costs. Nevertheless, the innumerable benefits that information technology (IT) offers should not be disregarded (Rodriguez, 2014). The supermarket should keep track of the current advances in retail markets for solutions and to discover possibilities that they can will implement in accordance to their projected budget without exceeding expenses.
Creativity and Innovation
Competition in the corporate world is continually advances and for OZ supermarket will require to adopt to changes that will ensure they that they remain above the competitive advantage. The business can eventually add to its only non-perishable, household and stationery items in order to attract more customers. Without the perishable products like fruits and vegetables, customers may go to other stores that stock both and the supermarket will therefore lose them. It is therefore important they continually add and introduce more products and services to while evaluating the general customer responses. Customers may require to see new and fresh products (Rodriguez, 2014).
Influence and control the power of the internet
The Internet is increasingly becoming a vital business instrument by connecting organizations with their customers (Steinfort, 2014). Oz Supermarket needs to use it for marketing their products and services. In addition the business can consider selling their products online sales for their products and services by delivering products to their customers. Furthermore, the supermarket needs to create online platforms for their online customer base whether they can capture feedback for customers and continue marketing their products. Vending is not only just resident anymore but with the dawn of the advances in the Internet technologies, the business can extend their selling base by utilizing it (Rodriguez, 2014).
The researcher commends Oz Supermarket for adopting technology to perform business operations. On the other hand, the researcher also recommends that Oz Supermarket improve on its business by taking on the proposed measures above for further productivity of the business.
Technology is growing by leaps and bounds every now and then. Organizations that are utilizing information and communications technology (ICT) for their business objectives have already gained a competitive advantage over those that are yet or are slow to do the same. Incorporating information technology (IT) enhances business operations and increases performance and productivity in many functions including innovation, customer service and cost reduction. An information and communications technology (ICT) structure provides support for these enhancements by making it stress-free for establishments to interconnect, share resources and information and integrate business processes. Therefore, businesses including retail stores such as Oz supermarket need to be on the lookout for emerging and disruptive information technology (IT) that improve on business operations such as the ones suggested in the report above. This way they will be able to continue operating without being phased out by other similar
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