MXCP.L Regulatory News (MXCP)

21 May 2012

2ergo Group plc

Key agreements support the launch of 'TikTap™', its local commerce contactless coupon redemption technology

2ergo Group plc (AIM: RGO, "2ergo" or "the Group"), the mobile solutions company, has today launched "TikTap™", its local commerce contactless coupon redemption technology. The Group has also announced its first five key agreements for TikTap™with councils in Preston, Southport, Skegness, Salford and Blackpool.

These agreements are the first in a phased national roll-out in partnership with Local Government, Retailers, Business Forums and City Centre Management Groups, which will ultimately create a network of local loyalty programmes.

TikTap™ offers SMEs the ability to generate a brand presence through the TikTap™ mobile application, available on iOS and Android operating systems. It enables retailers to promote local, relevant, reliable and sustainable offers and to initiate fast, contactless transactions via any smartphone by a consumer simply tapping their smartphone over in-store pods, which are attached to the retailer's cash till.

Until now, a key challenge that has prevented the mass adoption of mobile couponing, mobile loyalty and mobile payments within the retail sector, has been the difficulties surrounding redemption of the offer at the cash till or point of sale. TikTap™ provides a simple "plug and play" solution which enables retailers to embrace mobile marketing in a cost-effective manner, making use of their existing cash tills, whist also being provided with extensive analytics of their customer's transaction.

The system is automatic, requires no manual intervention by the shop staff, and is based on 2ergo's recently launched podifi™ contactless technology platform, which is fully compatible with the majority of EPoS systems currently in use. It has also been fully endorsed by all major UK EPoS manufacturers and distributors.

2ergo will accrue a one-off fee for each installed pod and further recurring revenues from monthly licence fees per pod, as well as transaction fees.

TikTap™ will roll-out its first programmes in Preston, Southport and Skegness, closely followed by Salford and Blackpool, where the Group has garnered enthusiastic support from both national and local merchants and traders. Following the launch this month, visitors, residents and shoppers within these areas will benefit from redeeming highly targeted and valuable local offers and deals through an installed network of podifi™ pods in and around those towns and cities.

Neale Graham, CEO of 2ergo, said:

"TikTap™ puts the power of mobile marketing in the hands of the retailer, allowing them to initiate coupon based campaigns within minutes. TikTap's™ unique service delivers a highly targeted local audience and user-friendly technology to deploy, track and, crucially, measure those campaigns.

"By encouraging consumers to visit retailers to redeem offers, TikTap™ is helping to counter the current trend of buying online, which has been identified as leading to a decline in town centres and the loss of many household brands from the high street.

"We look forward to announcing further City programmes during 2012 as part of our detailed roll out plan for TikTap™."

As a result of the advanced analytics and reporting available through TikTap™, participating merchants will be able to improve the relevance and success of their promotions by learning more about their customers, and in turn will be able to deliver offers of greater relevance which will help to generate customer loyalty. Partners such as Local Authorities, Retail Groups and Town Managers, will also be able to learn more about where visitors are coming into the area from, and where they are spending.

Hazel Blears, MP for Salford and Eccles commented

"The problems of high streets and town centres are well known. I believe that this ground breaking technology provides the platform for local authorities and business leaders to make the fundamental changes needed to consumers on our high streets.

"I'm delighted that a company from my own constituency will help local businesses fight back to create towns and cities that people are compelled and rewarded to live, visit and shop in."

Peter Rankin, Council Leader of Preston City Council said:

"TikTap™ is really exciting innovation, in fact just what the High Street needs currently. It should be a real fillip to local shops and it's great news that Preston will be in the vanguard for the launch of this product."

Stefan Krause, Town Centre Manager of Skegness added:

"Shoppers have taken advantage of the internet to search for deals and buy online which has had a detrimental effect on the Skegness High Street - a trend we would like to reverse. TikTap™ builds the bridge between, mobile, online and town centre shopping to help get shoppers back into our local businesses."

Peter Hampson, Chair of Southport Tourism Business Network, commented:

"TikTap™ will not only attract new visitors to the area, but it is also a long-term solution, as the technology enables retailers to understand exactly who has redeemed each offer, at what time, and at what frequency. This will form the basis for an effective marketing strategy to make sure visitors continue to return to the area and keep local businesses flourishing."

Enquiries:

About 2ergo

2ergo Group plc (AIM: RGO, "2ergo" or "the Group"), the owner and international provider of innovative, proprietary contactless mobile technology podifi™ delivers coupons and vouchers, loyalty, proximity and payment solutions to organisations of all sizes in order to help them to develop and execute their mobile strategy.

Market leading brands such as Aviva, Ladbrokes, PizzaExpress, Rightmove, O2, Orange, Talk Mobile, Transport for London, Phones4U, Procter & Gamble and Visit England have all benefited from 2ergo's end-to-end mobile solutions to increase sales, mobilise business processes, reduce costs and enhance customer relationships. podifi™ is the culmination of 12 years' experience in delivering customer acquisition technology for clients including Orange Wednesdays, reputed to be the world's most successful mobile loyalty programme.

Headquartered in the UK, 2ergo has been a pioneer of enabling innovative mobile business solutions since 1999. 2ergo is an exclusive Mobile Partner for Microsoft's Innovation Outreach Programme.

For more information visit www.2ergo.com

About TikTap

"TikTap™" is a local commerce contactless coupon redemption technology developed specifically to help retailers and hospitality outlets generate a mobile brand presence and attract customers to their store. It comprises a specially developed "TikTap™" app (available on both iOS and Android platforms) and associated in-store "pods" attached to each participating outlet's cash till. These pods enable the customer to redeem offers selected in the TikTap app simply by tapping their smartphone over the pod at point of sale. 

The TikTap™ pods are compatible with existing smartphones and plug seamlessly into the vast majority of existing electronic cash tills, including units up to 15 years old. The pod sits at point of sale and recognises any device on the iOS or Android platform (including tablet devices). The system is based on 2ergo's recently launched podifi™ contactless technology platform, and has been designed not only to work with existing devices but also to interact seamlessly with near field communications (NFC) handsets as and when they are made available.

The TikTap™ pods are plug and play devices, connected to the retailer's cash till by means of a simple cable, using either a USB or a Serial port. While simple in its installation, the pod recognises the presence of offers in the device which have been 'Tik'd' into the app's digital wallet. A simple 'Tap' over the pod validates and redeems the offer, instantly reducing the bill on the EPoS terminal by the promotional amount, creating a more reliable redemption experience for consumers, and providing a full audit trail of redemptions for businesses.