Sirit’s plug-n-play devices take RFID to the mass market

Sirit Inc. is removing the complexity and lowering the cost of Radio Frequency Identification (RFID) and moving the technology further into the consumer marketplace with its new line of plug-and-play RFID products. The launch was made possible through the acquisition of Tennessee-based RFID systems developer, TradeWind Technologies LLC. "We’re moving out of these sort of niche B2B-centric or laboratory type applications really to the mass market where there’s more of a mainstream technology," Sirit’s VP strategy and corporate development, Chris Leong, tells Report on Wireless. "If you want to boil it down it’s basically new channels, new markets, new customers and new approaches." These new approaches, particularly from a pricing standpoint, will make RFID more accessible; while industrial readers are complicated, bulky and range in price from $4,000 to $5,000, the plug-and-play options are simplified and relatively inexpensive. In the case of the USB reader, merchants can upgrade their existing point-of-sale infrastructure to allow for contactless credit card payments simply by plugging a hockey-puck-like device into any system with a USB port. It sells for under $100 in low-volumes, and is as easy to install as a new printer, says Leong. The secure digital module and antennas are designed to plug into any device with an expansion slot – PDA, smartphone, or cell phone – and have many mobile commerce practicalities. Both options will serve businesses and consumers directly by speeding up transactions and increasing overall convenience. "Think about it during the holidays," says Leong. "You can speed through the line a lot faster, you’ll be a lot happier. If you can just wave something in front of a terminal and pay instead of messing around with signatures and things like that." Consumer appetite for this type of time saving and payment simplifying technology already exists in the Canadian market. According to results from a July 2005 Decima Research Inc. survey, a healthy percentage of Canadian cell phone users would be willing to use this type of payment service if it was integrated into a cell phone (RoW, Aug. 25/05). The research shows that approximately 8% of Canadian wireless subscribers (2% extremely and 6% very interested) would be interested in using their cell phone to pay for goods and services such as coffee, snacks, movie tickets or public transportation. Results of a similar survey conducted today would likely yield higher results of Canadians interested in conducting payment transactions with their cell phones. Since the survey was first completed, MasterCard has made a much bigger push with its RFID-enabled credit cards, recently announcing that moviegoers could use their PayPass-enabled MasterCards to purchase movie tickets and pay for concession items. This agreement, which was announced on February 15, calls for 100 movie theatres to be outfitted with the technology during 2006. The service is initially available in three theatres in the Greater Toronto Area. Beyond the consumer realm, Leong feels RFID has a future in healthcare, particularly pharmaceutical authentication and hospital patient wristbands. Less complex PDA-compatible products will help enable the rollout because there are so many handheld devices already in the industry. "By introducing the plug-n-play type product that we have with the SDIO module, an incremental upgrade to an industry that has a true case for the application, but at a price point that enables them to maintain the RoI," he says. "The issue is, when people are looking for an RFID reader they really don’t have that many choices out there…you pay the thousands of dollars for an industrial strength handheld, which is frankly overkill for a lot of applications." While Sirit had designs on moving into plug-and-play on its own, acquiring TradeWind immediately expanded their product line and engineering expertise, and gave them entry into the market. The company, according to Leong, is now ready to begin ramping up production on increased volumes, improving quality and lowering costs of RFID-enabled mass market devices. The amount of potential in the market is almost sure to invite competition from a number of different players, the Sirit executive says. "It’s sort of a double-edged sword case in compelling markets. You’ve got a lot of dollars, but you’ve got other people with those dollar signs in their eyes as well. It would be foolish for us to think that we’re going to be the only ones in this market, but we do believe we have a pretty competitive edge both from a first-movers standpoint as well as the infrastructure behind it to really execute." Leong also promises some pretty innovative offerings to come in the next few months as Sirit and TradeWind combine their intellectual properties. Public transit payment, peer-to-peer functionality, and stored value applications are all on the roadmap for the future as well, continually increasing the ways in which RFID will be placed squarely in the hands of consumers.

Sirit’s plug-n-play devices take RFID to the mass market

News | March 9, 2006

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