Bar-code scanning will be a common camera-phone feature in the near future, promises Olivier Attia, chief executive officer of Scanbuy Inc. Attia said that in the next 12 months he expects 50 million to 60 million camera phones to hit the market with his company’s bar-code scanning technology.
“Now everybody’s saying, `Hey, we should use this,’ ” Attia said.
Bar-code scanning is not a new application to wireless. Indeed, mobile computer maker Symbol Technologies Inc.’s primary business is selling wireless bar-code scanners to inventory managers and other businesses. However, Scanbuy and a handful of other startups are hoping to bring bar-code scanning to the consumer market.
The primary selling feature for such technology is giving shoppers instant access to Internet pricing databases like Amazon.com. By snapping a picture of a product’s bar code, camera-phone users would be able to see if they’re getting the best possible price and also could get user reviews and other comparison information. But that’s not the only application-those in the bar-code scanning market hope to distribute all sorts of information through codes.
Bar codes “are the bridge between traditional media and mobile media,” explained Jim Levinger, CEO of bar-code scanning company Nextcode. Nextcode joins Scanbuy, Semacode, OP3 in Sweden and others in working to uncover the opportunities in bar codes and camera phones.
Ubiquitous at supermarkets, shopping malls and other retail outlets, UPC bar codes feature a distinctive series of lines and spaces that correspond to a 12-digit item number used to identify each specific retail product. Although all camera phones can take a picture of a standard bar code, most current models don’t have the optical technology to decode it. However, newer high-end megapixel camera phones have the optics to discern the lines and spaces of standard bar codes. That’s where Attia wants Scanbuy’s technology to play.
“This is the typical consumer killer app,” he said.
Using Scanbuy’s technology, a camera-phone user could capture a bar code in a supermarket or electronics store, decode it, and then access Amazon.com, Shopping.com or Pricegrabber.com to see if the store offers the best deal. Attia said Scanbuy has agreements with three major handset players to install the company’s technology in phones, although he declined to name them. He said the first phone using the company’s scanning software will be available in Asia by the fourth quarter. Further, the company is working with carriers to develop bar-code scanning services and has already signed an agreement with Spain’s Telefonica. Attia said Scanbuy is testing its product with two U.S. carriers, although he declined to name them. Founded in 2000, Attia said Scanbuy runs on venture capital and angel investor funds.
Although comparison shopping is perhaps the most recognizable application for bar-code scanning, others in the market are hoping for something more.
“We need to provide a lot more data than is provided in standard codes,” explained Nextcode’s Levinger.
Nextcode is selling a proprietary scanning system that would replace standard UPC codes with a two-dimensional grid of square dots. Nextcode’s codes take up about the same space as a one-dimensional UPC bar code, but include far more information. The codes are also readable on any camera phone, even those with low resolutions.
“It can be used in a variety of applications,” Levinger explained.
Such codes can be included in advertising, allowing users to access product information and register their interests. Wireless content providers can also sell their content to phone owners by embedding their wireless Web sites into the codes. Other bar-code scanning applications include exchanging contact information through personalized bar codes or purchasing movie or event tickets through bar codes in advertisements.
Levinger acknowledged that many such applications can be conducted through text messaging short codes. Mobile-phone users can register for alerts and other services by sending text messages to five-digit short codes such as GOOGL or PEPSI-an application that works across almost all mobile phones. However, Levinger said short codes can be cumbersome, and that bar codes give marketers more information and flexibility.
Levinger said Nextcode’s technology will run several new marketing programs starting this summer. He declined to give details.
Bar-code scanning “is really going to change the way people are using their phone,” said Scanbuy’s Attia.
