The business model developed by VeriFone Systems for screens in London’s black cabs could be applied to other locations that also use its payment technology, such as supermarkets’ gas pumps.

Primarily a provider of secure electronic payments, VeriFone became the dominant digital-media operator in New York City cabs last year following a deal to acquire Clear Channel Outdoor’s advertising rights to thousands of the vehicles. It also has in-cab screens in several other U.S. cities.

Now, it is pursuing a similar position with a £30m ($48.5m) investment in London, where its core offer to cab drivers is the free installation and five-year maintenance of a terminal for card payments. But the 3G mobile link used to connect this to VeriFone’s systems also supplies content to a 15-inch in-cab screen on the internal window that separates driver from passengers.

For VeriFone, UK head of media Jawad Siddiqui told Screenmediamag.com, “media came out of New York”, where the Taxi and Limousine Commission mandates screens in cabs. “We want Boris [Johnson, London’s mayor] to do the same in London. It hasn’t happened but we live in hope.”

The cab screen, described by Siddiqui as “a big tablet with a two-way communications link”, is controlled by two armrest-mounted units in the passenger compartment. It is divided into multiple zones, with VeriFone branding at the top, a continuously updated feed at the bottom and two main zones in the middle, and Siddiqui promises high-quality and regularly refreshed content to ensure it remains appealing to passengers who may travel frequently in black cabs.

As in New York, VeriFone will sell advertising itself, rejecting pitches from sales houses. Ratecard will be set “at a level that’s competitive with outdoor”, said Siddiqui, and the playout report is linked to the cab’s meter so advertisers are not charged for exposures to an empty compartment. Further down the road could be an opt-in mechanism on the card-payment unit allowing VeriFone to link ad exposures to named individuals.

However, London’s 22,000 black cabs are not VeriFone’s only European target. It is also looking at taxis elsewhere in the UK and Europe, and at other locations where it provides payment services – such as 5000 petrol pumps at Tesco supermarkets.

Typically, screen media networks have been built by location owners, by specialist digital out-of-home network operators, or by the two in partnership. But VeriFone illustrates another approach: the firm’s main business lies in providing an entirely different service, yet the technology required for that also gives it the infrastructure for a screen rollout. Could other firms in the same position, for example those supplying gaming machines to pubs or videoconferencing facilities to business centres, take a similar tack?

www.verifone.com

Share this post