7-Eleven, Inc., the world’s largest convenience retailer, announces the start of its national rollout of Vcom with the installation of an initial 1,000 stores beginning with 49 Vcom kiosks in the greater Orlando, Fla., area.
Vcom is 7-Eleven stores’ one-of-a-kind, self-service machine that offers ATM capabilities and touch-screen convenience to provide customers with financial and other services 24 hours a day, every day.
Vcom is unique in the world of kiosks because of the variety of offerings on a single device. Currently, customers can conduct American Express ATM transactions, purchase Western Union money orders and money transfers, pay bills through Western Union’s Quick Collect(TM) payment service and cash checks through Certegy Check Services(SM), a division of Certegy, Inc. Customers can pay by cash at Vcom by inserting as many as 30 bills at a time into a bunch-note acceptor on the machine.
The 49 of 7-Eleven’s 136 Orlando-area stores that have the new Vcom machine are in Orlando, Winter Park, Maitland, Altamonte Springs and Casselberry. The company plans to install approximately 400 kiosks in various markets in the United States before the end of 2002 as part of its initial 1,000-store rollout taking place through the second quarter of 2003.
“We selected Orlando for the national launch because there already is a strong demand for 7-Eleven stores’ current financial products, like money orders, which is a good predictor of consumer acceptance of Vcom’s financial services,” says Jay Giesen, 7-Eleven vice president and general manager of Vcom.
“Our research tells us that customers want to do multiple financial and personal tasks at one time, have 24-hour access to cash and a choice of convenient locations,” he said. “Vcom adds a new dimension of convenience for our customers, and we believe they will like this innovative way of cashing checks, purchasing money orders, transferring money and paying bills. Our customers in Orlando already are responding positively, and the Vcom transaction count is reflecting that.”
7-Eleven anticipates that Vcom will offer additional services, such as touch-screen access to online shopping and telecommunications by early 2003. The e-commerce offerings will be provided by Cyphermint, Inc. through its patented Pay Cash System(TM) that allows customers to pay at the kiosk with cash, as well as with a check, money order, or credit card. Telecommunications services will be available through Verizon, Inc.
“While Vcom services will appeal especially to the under- and unbanked population, past experience has taught us that a broad range of individuals who already have bank accounts like the convenience of 24-hour-a-day, 365-days-a-year access,” said Giesen.
Customers can use a simple, menu-driven series of options available in English and Spanish to perform their transactions. Those who need personal attention or have questions can speak with a bilingual customer service representative through the Vcom phone attached to the kiosk.
7-Eleven recognized several years ago that it was in the financial services business because its U. S. stores sell $4.3 billion worth of money orders, and their customers conduct 105 million ATM transactions annually. The company wanted to make these and other financial transactions more customer-friendly, convenient and fast.
In 1998, 7-Eleven introduced Financial Services Centers in 37 Austin, Texas, stores in a “proof of concept” program to test customer receptivity. Customers responded well to the non-staffed, touch-screen technology that allowed money order purchases, money transfer, bill payment and check-cashing services in addition to traditional ATM transactions.
7-Eleven did a pilot test of its next generation of the kiosk, called Vcom, in both the Austin, Texas, and Ft. Myers, Fla., areas last year to determine what marketing methods most appealed to consumers. In addition, the company enhanced customer communications at the Vcom kiosk screens. Based on the performance of the 1,000 units, the company could install an additional 2,500 Vcom kiosks starting late 2003.
7-Eleven is negotiating with other premier companies in their respective industries to secure national contracts for services consumers will want. The company anticipates Vcom will later offer loan and credit services, car insurance, deposit capability, event ticketing, travel directions and road maps.
About 7-Eleven, Inc.:
7-Eleven, Inc. is the largest chain in the convenience retailing industry. More than 21,000 7-Elevens are located in the United States and Canada and 18 other countries and U.S. territories throughout the world. Sales at 7-Eleven stores around the world totaled $31.0 billion in 2001. Approximately 5,700 of these 7-Elevens are operated or franchised in the United States and Canada by 7-Eleven, Inc. IYG Holding Company, a wholly owned subsidiary of Ito-Yokado Co., Ltd., and Seven-Eleven Japan Co., Ltd., has owned a majority interest in 7-Eleven, Inc. since 1991. Seven-Eleven Japan operates more than 8,500 7-Eleven stores under an area license agreement. For more information about 7-Eleven, the company’s Web site address is .
