Digital Transactions previews an upcoming story about cashless vending, touching on the general trend towards higher ticket sizes at vending machines.

Currently, no more than 3% of the 8 million vending machines deployed in the U.S. accept credit cards, according to Michael L. Kasavana, a professor in hospitality business at Michigan State University. That figure is expected to reach 50% in 2009, says Kasavana.

The article says that vending machines generate about $45 billion in sales annually, according to London-based Research firm Mintel International Group Ltd.

A new payments consortium called PASS (Payments As a Secure Service) announced its formation at the Microsoft Developers Conference. The consortium, which is led by IP Commerce, intends to exploit new features in Windows Vista, including the operating system's enhanced security and discovery features.

Currently, small businesses interface with credit card companies and financial services firms in the financial ecosystem through highly proprietary relationships based on one-to-one technology connections. PASS redefines this relationship by enabling Independent Software Vendors, System Integrators and Value-Added Resellers to create service-oriented financial management solutions in software applications fulfilled by best-in-class providers through a single service provisioning system.

Participants in PASS include BankServ, Chase Paymentech, PayPal, and Pay by Touch among others.

First Data announced that it will be offering Discover Network card acceptance as part of an integrated service to small- and medium-sized merchants.

Under this agreement, First Data will provide processing services to merchants for Discover Network acceptance that promotes a broader range of payment options at the point-of-sale. Merchants, such as restaurants, retailers, and specialty shops, will receive an easy, cost-effective, all-in-one payment processing solution with the convenience of a single source for statements, settlement, and customer service. First Data sales channels will have full responsibility for pricing, processing, settlement, risk management and customer service for the merchant accounts.

First Data says it will begin pilot programs in selected geographic areas early this summer, with full market deployment coming in Q4 2006.

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Note: Throughout the day, as Payments News happens, this post is updated.