Flashback: Where we were 10 years ago
By Stacy Bradshaw
By Stacy Bradshaw
They did it to fast food. They did it to parking. They’re going after
what are traditionally considered cash-only businesses. And they tell us
they’re going to do it to vending.
They did it to fast food. They did it to parking. They’re going after what are traditionally considered cash-only businesses. And they tell us they’re going to do it to vending.
They are the credit card associations. They know more than anyone else what it takes to change consumer habits, and the American card associations are targeting vending as their number-one market opportunity, according to James Turner, vice-president of intelligent vending at U.S.A. Technologies.
Turner spoke at the NAMA Exhibition in Atlanta, Georgia, on how to leverage new technology to grow your business.
Turner, along with MEI’s senior marketing manager Craig Lewis, discussed the consumer’s move toward cashless payments and introduced their respective credit/debit and data technologies, targeting a future of multiple payment options, enhanced revenue growth, multiple vends and higher-price items.
It all sounded too good to be true. Then, on October 27, U.S.A. Technologies and MasterCard U.S.A. announced their new partnership and launch MasterCard PayPass contactless payment solution on more than 500 vending machines in the United States.
The companies suggest this move will revolutionize the $40 billion global vending industry.
“Cashless vending is very much impulse consuming,” said Lewis. “Take vend prices over the one-dollar threshold,” and avoid extinguishing the impulse nature of sales by offering cash-only options.
“The platform you choose should be able to do two things – cashless vend and data. It doesn’t makes sense to put two different platforms in one machine,” said Turner.
“Look to do whole accounts with cashless,” not just one machine and not the next. Operators need to switch the account as a whole to allow for multiple and impulse vends, said Turner.
Together, the combination of new products and convenient payments will drive overall vending consumption. The overall perception of vending could change.
“They’re going to do it to vending,” said Turner. And it’s going to be huge. o
–from “Cashless Conversion On The Horizon,” by Stacy Bradshaw, Canadian Vending, November 2005