Spinx customers will soon be able to complete an entire gasoline transaction using only their mobile phones. The company partnered with Duluth, Ga.-based NCR Corporation to create the ConvenienceGo (C-Go) app and become one of the few convenience stores using mobile payment.
NCR specializes in point-of-sale and other software in industries including banking, travel and retail worldwide. The app will be available at 57 of Spinx’s 69 gas stations and convenience stores in the Carolinas. Forty of them are located in the Upstate.
Jim Weber, chief marketing officer at Spinx, said the process of customizing the C-GO program to fit Spinx’s needs took about six months. In addition to allowing users to complete gasoline transactions on their phones, the app will also be connected to the company’s Spinx Xtras loyalty program, automatically logging purchases. It will replace the plastic key fob normally used by those in the loyalty program.
“Mobile technology is the next frontier in convenience shopping and is enabling today’s consumers to get what they want quickly and easily,” said Jimmy Frangis, NCR’s vice president and general manager of grocery and convenience stores, in a release. “Spinx is at the forefront of mobile shopping with its innovative C-Go deployment. As shoppers embrace the technology, Spinx will be well positioned to reap the benefits of increased shopper loyalty and more repeat visits.”
Indeed, as gas stations move to apps, those with purchasing capabilities are not yet widely in use. Most apps currently help consumers locate gas stations, and some are tied to loyalty programs. Kangaroo Express, based in Cary, N.C., will soon launch an app specifically for a promotion coming this summer.
The use of mobile point-of-sale (POS) systems is on the rise, though experts say it is largely seen as a complement to traditional registers, only serving as a full replacement in small businesses. The mobile POS market will surpass $2 billion in hardware/software sales in North America in 2013, and 28 percent of North American retailers plan to adopt mobile POS in some form by the end of 2013, according to a report published last month from IHL services, a retail and hospitality research firm.
Spinx’s app could potentially impact sales, though the company says that was not the impetus.
“The program was not developed specifically to garner incremental sales, but rather to add another convenient service for our customers,” Weber said.
But at least one company has shown that a similar app can increase sales.
Cumberland Farms, in Framingham, Mass., recently reported an increase in transaction levels from users and up to an 86 percent retention rate on an app launched in spring of 2012, Mobile Commerce Daily reported in February. Its program has the option of automatically deducting payments from users’ checking accounts. Those who choose that option receive a 10-cent-per-gallon discount. The company says it is passing on savings from reduced processing costs for the gas station. Cumberland’s app was developed with PayPal.
Spinx declined to comment on whether its app would be similarly linked to bank accounts or give details about other features.
Weber said the company was in the final stages of planning the rollout phase and expects to implement the program in the next few months.
