(INTERNET WIRE) -- ARTS, the Association for Retail Technology Standards of the National Retail Federation, formally accepted a proposed XML-based standard for delivering receipts over the Internet. An innovation that will soon bring proof of purchase to your PC, the Digital Receipt is the product of the Digital Receipt Alliance, which was formed and led by NCR Corporation. Other founding members of the Alliance include America Online; Microsoft; Office Depot; ValiCert, Inc. (formerly known as Receipt.com); RCS and VeriFone, a division of Hewlett Packard Company.

There are other parties that have identified interest in the Digital Receipt Alliance, including a leading payment card association and a leading personal software company. Shop.org, the trade association of online retailers, has agreed to review the proposed standard.

"ARTS supports the Digital Receipt Alliance, and believes that this collaborative approach is neutral and in the best interest of the retail community. Similarly, ARTS believes that a standard electronic receipt will be great for e-commerce and may be the best choice for some consumers making in store purchases," said Richard Mader, executive director of ARTS.

The receipt is an Internet version of the traditional paper receipt, and can be delivered via e-mail or to a web site database. Deliverable for in-store and online purchases, Digital Receipts can also allow purchase data to be downloaded into personal finance, tax or accounting applications.

"This alliance demonstrates the kind of thought leadership that will shape the way we shop in the future," said Dr. Raymond Burke, director of Customer Interface Research at Indiana University. "It enables retailers to reach each customer individually, creating a more useful and convenient medium for reaching online consumers, and ultimately, a more loyal online customer base for retailers."

The Bottom Line for Retailers
The retail playing field today is rapidly changing with the advent of virtual shopping channels, particularly the Internet, which now represents over three percent of all retail sales. Many experts believe the key to success lies in a combination of pure online and "brick and mortar" stores. This ideal integrated retail enterprise has been labeled "click and mortar."

While Digital Receipt technology enables retailers and consumers to have greater interaction, it also enables retailers to narrow the flow of information to suit the profile of each customer. For example, it can:

• provide a "one-to-one" marketing communications medium that can be customized for the recipient
• be used as an opt-in tool (i.e. the consumer chooses to participate voluntarily and selects the information to be delivered from the retailer)
• be used to deliver promotions and offers with a significantly higher response rate
• send a link to an Internet application along with the receipt to automate manual tasks (e.g. rebates, warranty registrations, etc.)
• "Retail customers have a diverse set of preferences and needs. If you can learn, remember and address these needs, you are certain to acquire a competitive edge and secure your customer's loyalty," said Burke.

Large Gain for Small Businesses
There are millions of small businesses that will also benefit from the availability of a Digital Receipt. Most small business transactions are highly similar to a consumer transaction where the owner or a key employee records the purchase in a checkbook and files the receipt. With the availability of the Digital Receipt, the small business owner can receive the proof of purchase data via e-mail or by downloading from a web site and import the transactions directly into small business accounting and tax applications.

In addition, approximately 40 percent of small businesses in the United States are retailers. These retailers depend heavily on the relationship with their neighborhood community of customers. With the Digital Receipt, these small business retailers will be able to compete more effectively against online retailers by offering the convenience of online receipts and the ability to communicate via the Internet with their customers that prefer e-mail to save time. Small retailers with PC-based point-of-sale systems will also be able to use the Digital Receipt to automatically download customer transactions into accounting and inventory applications instead of manually entering the data at the end of the business day.

The Net for Consumers
No longer will people need to dig through their wallets, files and drawers for a paper receipt as proof of purchase for returns, rebates, warranties or other transactions. Digital Receipts will allow consumers and small businesses to easily track purchases and organize expenses on their PC, digital wallet, set-top box or handheld computers. In fact, Digital Receipts eliminate the need to manually enter retail receipt information into personal finance, tax or other applications, making tax time a less taxing experience.

Beyond personal or small business finance implications, this technology empowers consumers to help shape the relationships they have with retailers. Rather than solely receiving what the retailer chooses to send, consumers will now have the power to use e-mail and the Internet to communicate with retailers about their in-store and online retail transactions, such as purchases, returns and layaways.

"Successful Internet Age businesses no longer rely on great products. They must have great customer relationships and services if they hope to compete," said Burke, "and the conveniences offered by Digital Receipt technology will help to build those relationships."

What's Good for Consumer Goods Manufacturers
The availability of Digital Receipts allows product manufacturers and retailers to work together using the Internet to provide promotions and product information to consumers. For example, with a Digital Receipt, consumers can easily register products for warranty, apply for rebates, or provide their email address to receive product information and updates immediately upon receiving a Digital Receipt, which is the ideal proof of purchase.

"Manufacturers spend an enormous amount of money on cooperative marketing funds with retailers. The Digital Receipt, as an opt-in marketing medium to consumers, should stretch the effectiveness and efficiency of manufacturers' marketing dollars," said Burke.

About ARTS
ARTS was established in 1993 to ensure that technology works to enhance a retailer's ability to develop store level business solutions and avoid situations that limit a retailer's ability to implement change. ARTS also determines industry standards designed to provide greater value at lower costs.