Case Study
This article originally published in Self-Service World magazine's special section, FOCUS: Self-Service Software, Sep 2007.
A software application programming interface (API) is a way for service providers to open their offerings in a secure environment. An API gives a developer all the tools necessary to write applications that will work together seamlessly.
For TIO Networks, launching an API was key to meeting the needs of clients who wanted to tap into its network of financial services kiosks for the cash-preferred consumer marketplace in North America.
With time and resource constraints, the TIO staff could add only so many new clients to their network. The solution was simple: Open client integration via API. Now TIO partners can develop their own array of financial products and services for cash-paying customers who use the TIO network.
A strategic investment of Hewlett Packard, TIO is a national multiretailer network that allows clients to serve consumers who use cash rather than credit. The cash-preferred market, estimated at 30 to 40 million people in North America, is expected to grow. That's reflected in the expansion of TIO Networks, which reached 2,000 installations in early 2007. TIO has handled 10 million transactions and taken in more than $600 million through its terminals.
TIO Networks' clients include Circle K, ExxonMobil, Cingular Wireless (now AT&T), Speedway SuperAmerica, Cricket Communications, COX Communications, Memphis Light Gas & Water and Qwest Communications. TIO is deploying to new locations and expanding existing territories through TIO Networks and third-party-funded self-serve kiosks and hybrid ATM devices.
Allowing outside access to its network enables TIO to scale up its development efforts without scaling up the company. "If we perform all the software integration ourselves we can only go so fast," said Hamed Shahbazi, chairman and chief executive officer of TIO Networks.
Recent growth also has been fueled by the launch of TIO Express. The clerk-assisted payment program enables partners to access TIO's real-time, Internet-based bill-payment processing gateway and accept payment for time-sensitive services. The Express system supplements the network of stand-alone kiosk systems. A clerk uses a Web-enabled computer to conduct cash transactions on the TIO Network, taking the cash into the location's till. The network "sweeps" the cash into the store's account on a daily basis.
API development
With the API, TIO plans to leverage its core competencies in self-service bill-payment processing, financial services aggregation and automation for greater flexibility for the network and its partners.
Clients can rely on TIO's existing package or use the API and the standard developer's toolkit to manage their own integration and to run transactions through the existing system. Client software must undergo a certification process to ensure compliance with security requirements and to deliver a high-quality customer experience.
New services
By integrating external services into its network, TIO can add additional functions such as issuing and reloading stored-value cards.
In partnership with ExxonMobil and NetSpend Corp., TIO launched the TIO Prepaid MasterCard at participating Exxon and Mobil convenience store locations across the United States.
Consumers in participating locations can purchase a TIO Prepaid MasterCard and use TIO's automated self-serve kiosks to activate the card instantly and load it with funds. The cards, which are issued by MetaBank, will enable consumers to make purchases or gain access to cash anywhere that debit MasterCard cards are accepted worldwide.
Features of the TIO Prepaid MasterCard include free direct deposit — the automatic deposit of paychecks on the card — and free Anytime Alerts balance and transaction details sent to a cardholder's e-mail or mobile phone.
"The API gives developers the flexibility to create their own compliant solutions and connect to our infrastructure," Shahbazi said. "We've created a portfolio of services that can monetize cash acceptance."
