Cashless Vending Payments Reduce Theft Risks
Jan 11 2005 : Vending machines that offer higher-value goods at unattended locations such as malls, offices, hotels and sports grounds are a target for criminals, who realize the value of the cash the machine must contain. Typical vending machines cost in the region of USD 3,000 to USD 4,000 and industry reports point to a growing incidence of actual machine thefts as thieves try to obtain cash rewards from a low-key source. Vending operators are accordingly being advised to consider cashless payment options at machines to reduce the incidence of break-ins and cash thefts while minimizing the risk of the machine being stolen.
The US vending industry, with over 8 million machines, is the biggest cash business, according to national association NAMA, and the most pervasive channel in terms of number of locations. With the Federal Reserve predicting credit and debit cards to surpass checks in total annual transactions by 2007, vending machine card transactions are seen as a major payments processing growth area. As consumers take to self-checkouts, pay-at-the pump for gasoline, and card payments at quick-serve restaurants, more vending machine operators are expected to add cashless payment options to their retail channel.
Just 2 to 3 per cent of US vending machines have credit card payment options, according to NAMA, but by 2009, about 50 per cent of machines in the US should support cashless payments. In a recent industry trial of two vending machines located side by side, the credit card-enabled machine achieved 15 per cent more in revenues, while 47 per cent of its transactions involved multiple product purchases. Other system suppliers similarly report that cashless payment acceptance at vending machines can increase purchase transactions by 15 per cent, and average revenues per sale, by 20 per cent to 50 per cent, NAMA notes.
AMonline