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EFTPoS (electronic fund transfer at point of sale) seen as a potential development in the 1970s, increasingly became a realistic proposition during the 1980s. In 1985, Eftpos UK Ltd, a joint endeavour by banks and building societies, was established to develop a unified clearing system. In advance of national introduction, three cities, Edinburgh, Leeds and Southampton, were chosen to pilot the Eftpos UK Ltd system. These pilot schemes began in late 1989. This article presents survey findings from the Edinburgh pilot scheme. Retailer response was sought before and after the trial to ascertain changing perceptions. The results throw an interesting light on the evolving attitudes of retailers to the system and indicates areas where future marketing of EFTPoS systems should be modified.

One reason for the slow adoption rate of Electronic Fund Transfer at Point‐of‐Sale (EFTPoS) is that consumers perceive that EFTPoS has a higher level of risk than other traditional payment methods. Makes use of a concept in consumer behaviour and perceived risk to study the differences of consumers′ risk perceptions among alternative payment methods and whether these perceptions will be affected by the size of purchase and EFTPoS usage experience. The major findings are: (1) EFTPoS has the lowest physical risk and highest financial risk, the credit card has the lowest psychological risk and highest time loss risk, while cash has the highest physical risk and lowest performance risk; (2) Physical risk, financial risk and time loss risk for cash payment are significantly higher when the purchase is large, while performance risk for EFTPoS and credit card payment is significantly higher when the purchase is small; and (3) users of EFTPoS have a significantly higher level of perceived financial and time loss risk than non‐users, while non‐users have higher level of psychological risk. The overall finding is that the risk profile of EFTPoS is similar to that of the credit card but significantly different from cash.

Saudi retailers’ experiences with the system for electronic funds transfer at point of sale (EFTPoS) in Saudi Arabia and the effects of those experiences on their attitudes toward the system were examined in a survey conducted in the Eastern and Western provinces of the Kingdom of Saudi Arabia. Results from a sample of 187 retailers show that adopting retailers have experienced the most benefit in the area of increased customer convenience, while the main problems have been delays at checkout counters and added responsibility for counter staff. Large retailers and retailers which are heavy users of the system report the most benefits while small retailers and light users of the system report the most problems. The results also show that adopting retailers have an overall positive attitude toward the system, and that retailers which have experienced the most benefit (or the least problems) have more positive attitudes toward the system than those which have experienced the least benefit (or the most problems). Implications of the results are outlined and discussed.

After only five years in operation, the Electronic Funds Transfer at Point of Sale (EFTPoS) system of Saudi Arabia has made a significant impact on the Kingdom’s commercial environment. Recent EFTPoS statistics indicate growing consumer acceptance of the system. To help decision makers identify areas for further improvements in usage, the study reported in this article examines how EFTPoS usage and overall attitudes toward the system vary across different consumer demographic groups. Results of the study indicate that in general, consumers have favourable attitudes toward using the EFTPoS system. However, they are concerned about the possibilities of losing control over expenditures when purchases can be charged to electronic cards. Significant differences in EFTPoS usage and attitudes are found between men and women, consumers of different national backgrounds, and monthly income categories. Age and educational level do not have significant effects on attitudes. Practical and theoretical implications of the findings are outlined and discussed.

Three key self‐service technologies exist in banking in New Zealand: ATMs (automatic telling machines), EFTPoS (electronic funds transfer at the point of sale), and telephone banking. All three are at differing stages of the adoption process. Of interest is exactly the stage where they are and towards which they are heading. Information of this nature would assist banks in developing marketing strategies. In order to identify at what stages of adoption these technologies are, and heading towards, 302 telephone surveys were carried out with randomly selected respondents. The results indicated that ATMs are at the late majority stage of the diffusion process, and heading for the laggard group. The question thus needs to be asked, “Should banks be spending any resources at all in trying to encourage new users?” The laggards are the least likely of all customers to adopt, and the banks′ resources could well be better spent elsewhere. EFTPoS is at the late stages of the early majority, and heading for the late majority. Strategies used by the banks to encourage new users need to recognize that the late majority are typically sceptical about new ideas. Also the banks need to stress the mobility value of EFTPoS, since members of the late majority tend to be less mobile. Telephone banking is at the early stages of the early majority. Banks need to recognize that at this stage it is word‐of‐mouth which will determine the success or failure of a product or service. Telephone banking systems should be available to the market only when the system has been found to be faultless, and customer service levels are at an optimum.

Considers marketing information and channel relationship issues raised by the commercialization of EFTPoS systems. Discusses the role and experience of the retailer, banker and consumer, and their evolving relationship in the context of electronic payment systems. Drawing on previous analysis of information flow within channels, where a dyadic relationship has been described, considers the triadic relationship created through the use of electronic payment systems at the point of sale, and the impact that consequent access to information will have on the relationship between bankers and retailers.

The first part of this article, published in our March/April issue, looked at the Smartcard — a computerised creditcard which the author suggests would be a considerably less complex and more secure method of cashless payment than EFTPOS. In this second article, Tim Kingaby looks briefly at EFTPOS systems in Belgium and the States, where the banks are in the unusual position of being forced to foot the bill. He then goes on to suggest two further, and cheaper, alternatives to EFTPOS: an extensive network of ATMs in all sorts of consumer‐convenient locations; and the customer activated transaction (CAT) system in America.

As we discussed in our last issue, there are a number of difficulties which are impeding the satisfactory introduction of EFTPOS, not the least of which seems to be a remarkable slowness on the part of retailers and bankers to come to any agreement. In this article Tim Kingaby is suggesting the Smartcard as a simpler and more satisfactory alternative to EFTPOS. The Smartcard looks like an ordinary credit card, but in effect it is a tiny computer, with its own memory, which records the transactions for which it is used. Tim Kingaby claims that it offers the maximum of flexibility together with virtually complete security. Noting that the banks are heavily committed to their plans for the 1986 EFTPOS experiment, he wonders whether they have made the right choice. In a further article he will look at ATM networks and Customer Activated Transactions Systems.

A summary of the Retail EFTPoS 90 conference is given. The conference highlighted many developments over the past 12 months in the progress of EFTPoS UK, and was enthusiastic about its future as a leading payment method system for the country′s retailers. News of other payments was also discussed, including a futuristic look at the smart card on the one hand and an overview of how retailers would benefit from the dismantling of the credit card anti‐competitive agreements on the other. Balancing the discussion about plastic payments, a contribution from Transax Financial Services, the UK′s largest cheque guarantee company, drew attention to the continuing presence of the cheque (still Britain′s second most preferred method of payment after cash) and highlighted the increasing requirement for retailers to be able to accept cheques without the risk of fraud.

The Connect card may be seen as a transitional stage towards EFTPoS, about which there has been a great deal of controversy over the past few years. The current situation is that, with the aim of setting standards for a national system, a development scheme currently under way will see a small inaugural service involving 2,000 terminals in three UK locations during 1988. These will be at Southampton, Leeds and Edinburgh.