Fuel Cards: a novel concept in Pakistan

05 Mar, 2007

Pakistan State Oil has been a pioneer in taking technology-driven initiatives. The company has been relentlessly pursuing to capitalise on technological advancement by heavily investing into innovative products and solutions such as Cards, Retail Automation, ERP Solution, etc.
Fifty years ago, the world saw the inception of plastic money with credit and debit cards. This has enabled a gradual transition from coins to paper to plastic. As can be seen, in the last 30 years, society has adopted cards as a new form of payment, which is easier and more convenient than cash or cheque. THIS EVOLUTION HAS BEEN SIGNIFICANT FOR TWO REASONS:
-- It enabled individuals to leverage credit
-- It is the first form of purely electronic money to exist since time began.
New technologies are emerging - such as contactless chip and proximity payments. These technologies open a huge number of potential access points for payment cards. With these new payment options for individuals, businesses and government organisations, commerce becomes easier. Today, a consumer or businessperson can buy goods or services at a moment's notice anywhere, anytime and in any way he or she chooses.
Electronic payments have had a profound and positive effect on individuals, businesses and economies. The era of electronic payment systems began in 1958 when the Bank of America launched its pioneering BankAmericard program in Fresno, California.
Currently, there are two leading payment brands, MasterCard and Visa, with the former having the largest user base. It is estimated that the combined turnover of two brands would reach at US $7 trillion this year.
Pakistan State Oil, being a believer in pioneering innovative services and solutions, embarked on a journey of unmatched and unparalleled technological breakthrough in the year 2002. With ever-increasing stiff competition, PSO had to take the lead from its competitors not only through its superior fuel products but also by innovative technological advancements, which would not only provide its customers convenience but would also introduce them to a whole new world of automation through secure transactions.
In July 2002, a novel concept was introduced in the country to reward customers for their loyalty and patronage towards the company through the 'PSO Loyalty Card'. These cards paved the way for other plastic cards. As of today, over 150,000 Loyalty Cards have been issued and customers are enjoying a host of benefits and privileges.
After the successful launch of PSO Loyalty Cards in February 2003, PSO launched its fuel-based credit cards for the business entities. The company introduced two kinds of credit cards: 'Fleet Card', which is vehicle-specific and bears the vehicle registration number and company's name, and 'Corporate Card', an individual-specific card that bears the name of the cardholder and the employer. Both cards are signature-based. These cards are secure and convenient alternatives to cash that are configured according to the customers' requirement.
These cards are well established and have received an overwhelming response from the corporate world. Today, we are providing convenience and security to more than 4,500 leading national and multinational entities for fuel-based transactions.
In order to secure and make foolproof transactions, PSO has invested heavily in the automation of its retail outlets. In February 2004, pump-controller interface for secure electronic transactions was introduced, which no other OMC has. This interface is between the point-of-sale terminal, dispenser and fuel tank. Pump controller ensures the elimination of manual intervention through pump-attendants and automates PSO cards transactions.
After the introduction of PSO Credit Cards ie. Corporate and Fleet Cards, retail sales increased exponentially, showing the level of confidence customers have in PSO and its products.
Third in line to be launched were PSO Prepaid Cards in September 2003 with multiple denominations of Rs 750, 1,500, 2,500 and 5,000 to match the consumption patterns of individual consumers. Very shortly, PSO Prepaid Cards would be available to our customers in other attractive denominations and designs to cater to the individuals' specific fuel needs.
Pakistan State Oil, being a customer-oriented company, has taken initiatives to provide its customers a new experience each time they visit the PSO forecourts. Following this philosophy, PSO introduced the Electronic Voucher (EVD) facility at its forecourts across the country in January 2006 along with Mobilink. Electronic vouchers of all major Jazz denominations provide the option of topping up mobile phone balance while refuelling vehicles.
Another initiative has been the acceptance of utility bills at PSO forecourts thru POS-Terminals. The company has entered into an agreement with the Sui Southern Gas Company (SSGC) to accept their bills at our retail outlets. The facility, currently available at selected sites in Karachi, will be extended to other cities in Sindh and Balochistan. PSO, as always, has once again become the only OMC to introduce such innovative facilities for its customers.
PSO is a customer-driven organisation committed to offer innovative and convenient services to our rapidly growing customer-base nation-wide. Our cards facility is available on more than 1,200 outlets and growing across the country for its valued customers.
In line with the company's constant quest to keep the wheels of innovation moving, PSO plans to introduce value-added services and more technology-driven marketing initiatives in the times to come. PSO's success in the plastic cards business is a testimony that continuous improvement is a key in this era of consumerism.

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