IBI STAMPS

In the United States, the introduction of Information Based Indicia (IBI) technology has allowed newer ways to sell stamps. IBI is an encrypted 2-dimensional bar code that makes counterfeiting more difficult and easier to detect, offering value beyond postage. Unlike traditional postage meter indicia, each IBI is unique. The IBI contains security critical data elements as well as other information, such as point of origin and the sender. The IBI is human and machine-readable.

Prior to IBI being introduced, postage vault devices were used on personal computers to allow postage stamps to be printed from one's computer. The postage vault device is a tamper resistant postal security device to disable postage equipment when tampered with. The postage vault can be also identified as the means to store (and keep track of) monetary funds in the postage vault. You can think of this as prepaying for the right to print postage from your personal computer. The Internet is used to reset or replenish funds in the postage vault.
In March 2001, the United States Postal Service authorized Neopost Online and NorthroP Grumman Corporation to test an innovative purchasing stamp system. This self-service stamp vending system allows the consumer to peruse through a variety of denominations and quantities, select the desired purchase and swipe his/her credit card to submit a purchase order. The stamp vending system then authorizes the purchase order, prints the stamp sheet(s) and finally dispenses them to the consumer. The ability to peruse, request, authorize, print, and dispense a stamp purchase using the Internet makes these the world's first browser-based stamps. This is the first instance where IBI was utilized on adhesive labels. The product from this self-service stamp vending system is aptly named by collectors as Neopost web-enabled stamps. These stamps were available from March 2001 through August 2003 and were denominated (fixed value) stamps.

In 2002 the United States Postal Service authorized Stamps.com to issue NetStamps. The NetStamps utilizes IBI technology and can be printed from personal computers with postal vaults. In 2004 the United States Postal Service introduced the Automated Postal Centers (APC). These kiosks provided non-denominated ($0.01 to $99.99) stamps. The intent of the APC is to reduce labor required to service consumers at the postal counters. Recently, personal pictures have been paired with IBI technology to provide a personalized stamp for the consumer. These stamps are custom made and require a period of time (days) to produce.
The push towards using IBI technology aids the United States Postal Service in finding new venues to sell stamps. It also reduces the burden of maintaining the mechanical machines to sell stamps. The United States Postal Service still relies on consigning stamps to retailers and banks (via automatic teller machines (ATMs). They must be the same size and thickness as currency in order to be dispensed by the ATM.

Similarly, Royal Mail in the United Kingdom has recently launched a "Print-your-own-postage" service allowing the general public to purchase IBI-style codes online, and print them onto address stickers or directly onto envelopes, in lieu of using First Class postage stamps. This was much remarked-upon in the press as the first time a consumer "stamp" has not featured an image of the reigning monarch. It joins the existing "SmartStamp" subscription service, which performs the same function but is primarily aimed at business customers.