OTI Reports Record Volume Growth of its Petroleum Payment Solution Implemented By BP
Cupertino, CA, January 20, 2004–On Track Innovations Ltd, (OTI) (NASDAQ: OTIV; Prime Standard [Frankfurt]: OT5), a global leader in contactless microprocessor-based smart card systems, today reported today record volume growth in its fuel management system, which is branded as FuelMaster by BP (Beyond Petroleum, formerly British Petroleum) at designated Fuel Retail outlets in Southern Africa. FuelMaster sales increased from 100M liters (26M gallons) in 2002 to approximately 175M liters (46M gallons) in 2003, not including the volumes from the FuelMaster Express program. This 75% increase makes the FuelMaster system one of the most successful launches of a product payment and/or loyalty program in the petroleum industry.
The FuelMaster program monitors and expedites the fueling and payment process for fleets. The system permits the fueling of designated vehicles only, thus eliminating potential fraud. It also brings convenience to fleet managers by providing comprehensive billing, while reporting fuel consumption and mileage.
The FuelMaster Express program, which is aimed at private motorists, uses an OTI contactless smart key fob to carry a driver’s payment information. The key fob is presented to the reader located on the pump and can be used at the convenience store for purchasing and gaining loyalty points. In 2003 ABSA, the largest retail bank in South Africahas joined the program, solidifying FuelMaster’s dominant position in the market.
OTI’s business model includes generating revenues from both product sales as well as volume based fee in the FuelMaster Program.
Gary Turner, FuelMaster National Sales Manager at BP said,” the OTI fueling program offers a state-of-the-art combination of service, technology, value and convenience for transport operators. FuelMaster is a high-tech solution to reduce shrinkage, improve manpower utilization, ease administration, streamline accounting and facilitate better decision making for our customers.”
Commenting on the results, Charlotte Hambly-Nuss, Managing Director of OTI Africa stated, “BP’s sales success with FuelMaster demonstrates the win-win business logic of OTI solutions. We are changing the way people do business. We make it easier for fleet drivers to get their gas, and for fleet managers to track gasoline usage, reduce fraud and unwarranted expenses and for BP, it creates a loyal set of customers who get their fuel at their stations.”