Nov. 20, 2008 – We like the fact Bartronics America – a company founded from a solution developed for NASCAR – has packaged that solution for others without "selling them RFID." Ron Carney, President and CEO, explains.

You offer a helpful solution for end users rather than focus on a technology. Tell us about that.

CARNEY: Our company is focused on providing a complete solution for both the consumer and the (entertainment) venues to help improve both the venue's operations and the consumer's experience. Our initial target market was the leisure and entertainment industry. RFID is just a tool for us; we are really trying to solve a problem.

For example, coming into a water park all you have is your bathing suit and people have to carry their purse. They have to deal with their kids and children. So we have come up with a complete solution that does cashless payment, does access control. It does age verification.

The features you are talking about are on a wristband. Other companies sell wristbands; but it seems you have whole system, not just a wristband.

When someone comes in (to an entertainment venue), tell us how their information would be associated with that wristband?

CARNEY: Our system consists of several parts. The first is an RFID wristband. We are the only company in the world that makes a secure RFID wristband; and that has some strategic advantages for the market. One is we want to link people’s credit and cash to a wristband, as well as their access privileges. The wristband itself is just an ID device and can't do anything on its own without our software system solutions.

So that you better understand, the next product we developed is a set of software packages that integrates into RFID point of sale (POS) devices. We integrate with (leading POS systems) and even the electronic cash register.

Does that mean that either restaurants, theme parks or hotels which already have systems you mentioned could just add on your products?

CARNEY: Exactly. If they already have one of these POS platforms, it is a simple matter of adding an RFID reader, a little bit of software and they are off and running with access to our system.

That isn’t the complete answer because now you have to have a server to track that information; and, if it is credit card related, you must access the credit card network and get a response.

So we have developed a third product, Smart Tender, a posted system so venues who don’t have IT departments can simply have an internet connection go to our Smart Tender server. They get web based management. They can completely look at all their revenues in real time; manage all that activity; and get authorizations for the credit cards.

It sounds like you are serving the application over the internet. Do they have the option of buying the software and keeping it internal?

CARNEY: Yes, if they are a big enough organization like Disney or Six Flags, not that we are working with them yet. They could buy our server platform and host it themselves.

Tell us about the security angle on the bracelet, would you?

CARNEY: We have a patent that basically extends the antenna of the RFID device all the way around the wristband. The whole wristband becomes a flexible circuit that is an antenna in itself. If it is cut anywhere or ripped, the wristband permanently disables. If somebody rips your wristband off, they are not going to get your money.

How long would it take for a venue to get each patron set up with all their information put into the wristband?

CARNEY: When you first come to the venue, it is two very simple things. Just scan your driver license; and we can process driver licenses from all 50 states, and validate that it is a real license. From that we get the consumer’s age and address and, if you happen to sell any alcohol in your facility, if that person was allowed.

The next step is you swipe your credit card and you are done. You scan your wristband and you are linked completely, hooked up and everything is set to our system. We call this an activation station, which is on the venue’s facility, but talks via the internet directly to our Smart Tender platform.

What kind of reports and background information does your customer end up getting?

CARNEY: Our hosted solution allows users web based access to their business from anywhere in the world: their home, their office, on the beach. We have the ability to set up owners of businesses who may have multiple venues and multiple E&L centers. They can configure employees. They can manage the patrons.

For example, in one of the early uses at International Speedway, NASCAR saw that one guy spent $4 a minute for every minute he was there. Wouldn’t you like to invite him back?!

With MasterCard Pay Pass, for example, all the information goes to MasterCard. We enable the venue to do customer relationship management by understanding where they are every time they do a transaction; how much they are spending; what kind of beer they like to drink. Do they like hot dogs? You can collect all that stuff.

Do you see customers using the wristbands taking advantage of purchasing trend information?

CARNEY: In every pilot we have seen a per-cap increase of 10% to 60% of park venues, which is absolutely phenomenal. We call this impulse spending.

I will use this example: you go to a park and bring cash. When you want to buy something, you pull out your wallet and you have $50. You say, "You know what, I'm going to spend $25 now, and save $25 in case the kids want to stop and get a drink on the way home. So you don’t spend all your cash.

The credit card industry has found if you use your credit card, you will spend 10-15% more than cash. We believe we've found a real psychological phenomenon that if you move that further from the wallet, scan your wristband and somebody hands you something, you feel, "Wow, that is free. Give me another one." So we see impulse spending increases.

We also eliminate cash. Now they don’t need a cash counting department. It is all handled up front.