Card Payments At Vending Machines Boost Sales
Nov 19 2004 : Credit and debit card transactions at vending machines are a strong value proposition for operators, who benefit from increased, multi-vend sales and greater revenues by offering cashless payments. At a group of six vending machines monitored in a recent test, cashless sales initially accounted for 12 per cent of purchase volume, but when card payments were introduced, this ratio grew to 32.3 per cent. Credit card use at the six machines totaled USD 17,995 from March to October 2004, or almost USD 3,000 in credit card payment volume, per machine, according to solutions provider USA Technologies, which ran the tests.
Cashless sales in a separate pilot of 100 glass-front beverage-vending machines between June and October 2004 also averaged USD 474 per machine per month, or a potential USD 5,692 per year. Credit and debit card payments at vending machines deliver a competitive edge, with a recent survey by the National Automatic Merchandising Association similarly showing consumers to favor cashless vending. If cashless payments are available at vending machines, average ticket items rise to USD 3.39, up from USD 1.32, and 75 per cent of all sales are multi-vends, according to USA Technologies.
Payment card-enabled vending machines also support add-on purchases, meaning that a consumer buying a soda with a credit card, could access a pop-up screen to make an online purchase of a movie, a pizza, flowers or a magazine, for delivery at a specified time and place. With vending machines expected to follow kiosks and ATMs in becoming multi-function terminals, consumers could download digital music or a new ringtone to their cell phone, or purchase a gift card for use at a local retailer. On this basis, card payments at vending machines are an option that operators should consider for improved revenues.
PR Newswire