Revolutionizing Payments

A Closed-Loop Payment Solution for Festive Event In A Large Venue

Overview

Fuji Autumn Matsuri, the biggest Japanese culture festival in Malaysia was one of biggest event organized and launched by the event organizer a industry-leading company in the diversified development, real estate, investment management and hospitality. Featuring traditional Japan, Modern Japan, Mid-Autumn Festival, anime cosplay to games, the culture festival features a vibrant and bustling marketplace that attract a diverse array of merchant, from Don Don Donki, and more. Managing payments efficiently in such large venues with tens of thousands of visitors is a significant challenge, often leading to long queues, payment errors, and operational difficulties.

Background

The festive event was held at a large, open-air venue spanning 42,000 square feet, with over 100 merchants offering a wide range of products and services. Previous events had faced problems related to payment processing, including cash handling issues and the inability to track sales data accurately.

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Cashless transactions and real-time data analytics not only enhance security but also give businesses powerful tools to better understand consumer behavior and optimize operations.

Angela Strange

General Partner at Andreessen Horowitz

Planning And Implementation

Merchant Onboarding

Prior to the event, all participating merchants were required to register with the event organizers and provide details necessary for integration into the closed-loop payment system. Each merchant was issued a unique QR code linked to their respective accounts.

Closed-loop Payment Infrastructure

A closed-loop payment infrastructure was established, consisting of:

01. RFID Card

A dedicated event-specific physical cards were introduced, allowing customers to load funds onto their cards using various payment methods, including credit/debit cards and mobile wallets.

02. NFC Scanners

Merchants were provided with all-in-one POS terminal with in-built printer and NFC scanner linked to the payment system, enabling them to accept payments from customers by scanning their RFID cards.

Event Execution

During the event, customers used the RFID cards to load funds onto their accounts. They could easily view their account balances and transaction history. When making purchases from merchants, customers simply presented their RFID cards for scanning. Merchants scanned the RFID cards, and payments were deducted from the customers’ accounts in real-time. Customer’s NFC cards with insufficient funds would get a “insufficient fund” warning message prompting merchant while processing the payment.

Impact And Benefits

The closed-loop payment solution yielded several key benefits:

Increased Revenue

The convenience of cashless payments led to increased spending by customers. Merchants reported higher sales compared to previous events.

Streamlined Transactions

Merchant stalls experienced reduced queues and wait times, enhancing customer satisfaction due to the convenience of cashless and contactless payment methods.

Enhanced Security

The closed-loop system reduced the risks associated with handling large amounts of cash at the event. Both merchants and customers felt more secure in their transactions.

Real-Time Analytics

Organizers gained access to real-time sales data, allowing them to monitor merchant performance, track popular products, and make informed decisions during the event.

The future of payments lies in enhancing convenience and reducing friction for both consumers and merchants. Closed-loop systems offer a way to streamline payments and improve customer experiences.

Gilles Ubaghs
Senior Analyst at Aite Group

Outcome

The implementation of a closed-loop payment solution at a large-scale bazaar event proved to be a game-changer, enhancing customer experience, improving security, and providing valuable data insights. The success of this system serves as a blueprint for future events seeking to streamline payments and optimize operations.

Future Directions

Organizers plan to refine the closed-loop payment system further, addressing connectivity issues and exploring additional features such as loyalty programs and merchant analytics. This case study highlights the potential of innovative payment solutions in transforming the dynamics of large-scale events.

Industry: Real Estate, Event

Location: Melaka

Overview

Fuji Autumn Matsuri, the biggest Japanese culture festival in Malaysia was one of biggest event organized and launched by the event organizer a industry-leading company in the diversified development, real estate, investment management and hospitality. Featuring traditional Japan, Modern Japan, Mid-Autumn Festival, anime cosplay to games, the culture festival features a vibrant and bustling marketplace that attract a diverse array of merchant, from Don Don Donki, and more. Managing payments efficiently in such large venues with tens of thousands of visitors is a significant challenge, often leading to long queues, payment errors, and operational difficulties.

Background

The festive event was held at a large, open-air venue spanning 42,000 square feet, with over 100 merchants offering a wide range of products and services. Previous events had faced problems related to payment processing, including cash handling issues and the inability to track sales data accurately.

//

Cashless transactions and real-time data analytics not only enhance security but also give businesses powerful tools to better understand consumer behavior and optimize operations.

Angela Strange

General Partner at Andreessen Horowitz

Planning And Implementation

  • Merchant Onboarding
    Prior to the event, all participating merchants were required to register with the event organizers and provide details necessary for integration into the closed-loop payment system. Each merchant was issued a unique QR code linked to their respective accounts.
  • Closed-loop Payment Infrastructure
    A closed-loop payment infrastructure was established, consisting of:
    – RFID Card: A dedicated event-specific physical cards were introduced, allowing customers to load funds onto their cards using various payment methods, including credit/debit cards and mobile wallets.
    – NFC Scanners: Merchants were provided with all-in-one POS terminal with in-built printer and NFC scanner linked to the payment system, enabling them to accept payments from customers by scanning their RFID cards.

Event Execution

During the event, customers used the RFID cards to load funds onto their accounts. They could easily view their account balances and transaction history. When making purchases from merchants, customers simply presented their RFID cards for scanning. Merchants
scanned the RFID cards, and payments were deducted from the customers’ accounts in real-time. Customer’s NFC cards with insufficient funds would get a “insufficient fund” warning message prompting merchant while processing the payment.

The future of payments lies in enhancing convenience and reducing friction for both consumers and merchants. Closed-loop systems offer a way to streamline payments and improve customer experiences."

Gilles Ubaghs
Senior Analyst at Aite Group

Outcomes And Benefits

The closed-loop payment solution yielded several key benefits:

  • Increased Revenue
    The convenience of cashless payments led to increased spending by customers. Merchants reported higher sales compared to previous events.
  • Streamlined Transactions
    Merchant stalls experienced reduced queues and wait times, enhancing customer satisfaction due to the convenience of cashless and contactless payment methods.
  • Enhanced Security
    The closed-loop system reduced the risks associated with handling large amounts of cash at the event. Both merchants and customers felt more secure in their transactions.
  • Real-Time Analytics
    Organizers gained access to real-time sales data, allowing them to monitor merchant performance, track popular products, and make informed decisions during the event.

Outcome

The implementation of a closed-loop payment solution at a large-scale bazaar event proved to be a game-changer, enhancing customer experience, improving security, and providing valuable data insights. The success of this system serves as a blueprint for future events seeking to streamline payments and optimize operations.

Future Directions

Organizers plan to refine the closed-loop payment system further, addressing connectivity issues and exploring additional features such as loyalty programs and merchant analytics. This case study highlights the potential of innovative payment solutions in transforming the dynamics of large-scale events.

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