The company expects these services to leverage new revenue streams that have thus far remained largely untapped by the c-store industry. But do they appeal to the average Circle K patron? “We’re going to find how smart we are,” mused Scott Templeton, manager of Phillips’ Innovation Group here.

One smart idea is that Phillips is charging customers for its high-end kiosk services. Some require a flat usage fee; others bill the customer based on time spent online. Either way, this is in contrast to many other retailers’ kiosk strategies, which often improve the in-store experience, but result in few measurable bottom-line paybacks. “I think we view our public access Internet kiosks as having a very different business model than those traditionally employed either in retail or in other public venues,” said Templeton.

The kiosks, known as ZapLink, were implemented late last year in the Phoenix and Philadelphia markets, as well as at 11 truck stop locations throughout the Southeast. With about 2,200 Circle K locations nationwide, Phillips plans to expand its kiosk count by the hundreds in the coming months.

One of the kiosks’ distinguishing features that should produce significant paybacks, according to Templeton, is a music downloading service, developed in cooperation with music giants like BMG and Sony. Presently available in the Philadelphia and truck stop locations, the service allows customers to download MP3 files — one song for $2 and a whole CD for $10. “It’s very much like a music store experience,” said Templeton.

For a price, customers can also burn software, CDs and other digital files. The company is offering games on the kiosks, too, though it may eliminate this service if it leads to customers monopolizing the terminals.

But videoconferencing? Templeton believes it makes sense: “There are thousands of customers that come to convenience stores for telephone services — pay phones, prepaid wireless phones and phone cards,” he said, adding that videoconferencing is the next logical step.

The East Coast locations don’t offer videoconferencing, but all ZapLink kiosks allow customers to e-mail a video postcard to a friend or family member for $5. “We think it’s a great gift opportunity,” said Templeton. Also, a VOIP service enables customers to make international calls, sans video, for a reasonable flat price. In fact, as a temporary promotion, the East Coast locations have been offering a 20-minute phone call for $1.

A more conventional kiosk usage is electronic bill payment. Circle K is letting customers pay their wireless and cable bills on ZapLink, with more utilities to come in the near future. The kiosks also offer a prepaid telecommunications service, including long distance and cellular. The terminals accept both credit cards and cash.

To further leverage the kiosks to drive sales, Phillips introduced yet one more twist: Circle K’s point-of-sale terminals have been equipped with monitors that run ads for various products and promotions. Customers who view these displays may be enticed to approach a kiosk and print out a coupon for an advertised offer.

Circle K’s kiosk partners are Global Access Alliance, Bessemer, Ala., for the Philadelphia and truck stop kiosks, and Info Touch Technologies, Burnaby, British Columbia, for the Phoenix kiosks.