Canadian Vending

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Cashless payments grow to 37% in vending: USAT report


June 5, 2015
By Canadian Vending

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June 5, 2015, Malvern, PA – USA Technologies this week released data from its 2015 Cashless Knowledge Base Study that suggests a cashless payment platform can be instrumental in increasing revenues.

June 5, 2015, Malvern, PA – USA Technologies this week released data from its 2015 Cashless Knowledge Base Study that suggests a cashless payment platform can be instrumental in increasing revenues.

One of the highlights of this year’s study shows average cashless usage at locations equipped with USA Technologies’ (USAT’s) ePort Cashless Payment System went up to 37 per cent during a recent one-month period from 32 per cent during a similar one-month period a year earlier, the company said in a news release. The study is based on a data set of approximately 100,000 vending terminals, over 90,000 of which report both cash and credit sales. The results also showed an increase in average annualized cashless sales when 30-day data from April-May 2014 was compared to 30-day data from April-May 2015. Further, there was an increase in average ticket prices when a card or mobile wallet was used versus cash.

Monthly cashless usage is continuing to grow and USAT projects that, at current rates, cashless usage at locations equipped with USA Technologies’ ePort Cashless Payment System could hit 40 percent by this time next year.

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The report highlighted several observations:

  • Cashless sales continued to increase as ePort terminals matured in the market, over the first 12 months following deployment.
  • Average annual cashless sales up from $2,719 as of May 2014 to $3,477 as of May 2015 (28 per cent increase).
  • Consumers are spending, on an average, 32 per cent more when they pay with a card versus cash.

In addition, ongoing Knowledge Base Studies continue to show a higher average ticket when consumers make purchases using a cashless payment method at a USAT ePort: from $1.21 when buying with cash, to $1.60 when buying with cashless – a 32 per cent increase.

“We believe that the results of our 2015 Knowledge Base Study demonstrate the industry’s acceptance of cashless and the revenue potential for the vending and unattended markets. USA Technologies has seen a meaningful growth in the use of cashless payment solutions. Based on data from our Knowledge Base and, given the availability of our Performance Optimization program that helps assist owners and operators drive the best return, we believe this is the year for many operators to go 100 percent cashless,” said Jim Turner, USAT’s vice-president of deployment services, in the release.

Deloitte predicts that 2015 will be an inflection point for the usage of mobile phones for NFC-enabled in-store payment, as it will be the first year in which the multiple prerequisites for mainstream adoption – satisfying financial institutions, merchants, consumers, technology vendors and carriers – are sufficiently addressed, USAT said. Apple reported, in its earnings call of Jan. 27, 2015, that Apple Pay constituted two out of every three dollars spent on purchases using contactless payments across the three major U.S. card networks. According to an unnamed source in an article dated November 5, 2014, by Ars Technica, an online publication, Google Wallet saw an increase of 50 per cent in weekly transactions using Google Wallet immediately following the launch of Apple Pay.

USA Technologies was able to cull this data from a data set of 100,000 cashless vending terminals in the traditional vending channel (beverage, food and snacks) that had at least 12 months of data available.

USAT’s Knowledge Base, used to assess the latest in cashless trends and behaviours, represents cashless payment data, and cash data where available, collected from its ePort Connect service network — a network that processes cash and cashless transactions across over 30 industry channels and sub-channels to assess the latest in cashless trends and behaviours.