Gary Allen of ifoAppleStore has given AppleInsider an exclusive look at the thing, and it's pretty cool (that is, if retail hardware is your bag). It's an iPod touch with a magnetic stripe reader, a barcode scanner and Apple's proprietary payment-processing software. The iPod rests inside what AppleInsider calls a "slip-on shell" that plugs into the dock connector; it includes its own battery to power the two scanning peripherals.
Apple Store employees will use the devices to accept purchases made with credit cards, debit cards and cash; they can even make returns and activate a new iPhone.
It looks like a clever device. If you see one in the store (or if you use one), tell us what you can.
[Via The Apple Blog]