USTT may take a while for news to catch on but read it. 2004 Confirms Growing Consumer Trends Towards Cashless Vending Machines -- More Revenue, Greater Convenience & Improved Customer Satisfaction
Wednesday January 12, 9:12 am ET
Survey Results Clearly Indicate Large Market Opportunity for Cashless Vending
MALVERN, Pa., Jan. 12 /PRNewswire-FirstCall/ -- A USA Technologies' (OTC Bulletin Board: USTT - News) survey of vending consumer purchasing habits in 2004 has confirmed that U.S. consumers purchase more or higher priced items from vending machines when they can use credit or debit cards to make payment.
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An analysis of more than one million purchases made at vending machines equipped with USA Technologies' e-Port® shows the average purchase was $1.87 when a credit or debit card was used, compared with $1.06 for a cash purchase at the same machine.
On 450,000 occasions, consumers preferred to use their credit and debit cards when making purchases from vending machines, and they made many more multi-purchases for example, buying an average 1.75 20 oz beverages with every swipe of their card.
"This was the most comprehensive analysis we have conducted in the market, and the facts are clear -- consumers want to be able to use their credit or debit cards when purchasing from vending machines," said Jim Turner, Vice President, Intelligent Vending, USA Technologies. "There were nearly half a million occasions when credit and debit cards were the preferred method of payment, representing almost one-third of all purchases made at the machines."
USA Technologies reported that the surveys surprised many of the biggest operators, bottlers and brand names from coast to coast in the vending industry.
"When we showed them the results, many began to realize that not only did cashless generate more business, but it's what vending consumers want and what vending operators now realize that they need to provide to keep their customers happy," said Mr. Turner. "In today's cashless, networked economy, consumers expect to be able to pay however they want, whether with cash, credit or debit, and USA Technologies has the technology, products and services in place to immediately satisfy this need.
2004 was also the year that cashless transactions exceeded cash for the first time in retail purchases. The U.S. Department of Commerce recently reported that $ 2.1 trillion of the $6 trillion in consumer spending in 2004 was made by using credit, debit, prepaid, and other forms of cards.
Industry analysts are predicting the trend will continue to accelerate, with the Nilson Report projecting that $3.6 trillion, nearly 50% of all consumer spending, will be cashless by 2008, and that 50% of all vending machines in the $40 billion US vending industry will be equipped with cashless transaction technology. The Kiplinger Report forecasts that wireless, cashless technology will increase sales in the vending industry from $40 billion to $70 billion by 2008.
The market analysis of USA Technologies showed that the combination of cashless transaction capability and the associated data visibility to improve operations, increased sales by 140% through vending machines located in Regal cinemas, representing 30% of all sales, and by 79%, or one-third of all transactions, at a Paramount amusement park in 2004.
The 2004 analysis also included vending machines at three national airports -- Sea Tac in Seattle, San Francisco and Salt Lake City - where credit and debit is generating between $5,000 and $10,000 a year in additional transactions to cash at each machine. There was even greater adoption of credit and debit in vending machines located in various business and industry accounts.
Hotels are among the growing e-Port customer base. One hotel in Phoenix reported that average transactions had also risen from $1.32 to $3.39, with 75 percent of all vends being multi vends.
"Our market place survey and the Federal Government confirming more cashless purchases over cash in 2004, is a clear indication that consumers prefer the convenience of using their credit or debit cards," said Mr. Turner. "Our survey shows that a cashless purchase increases the transaction value by as much as 75%, and the vending industry is beginning to realize that to go cashless just makes good business sense."
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