Card Users Spend 50% More At Vending Machines

The 50% increase in average ticket is similar to the increase seen at quick serve restaurants when card transactions were introduced two years ago, driving an almost overnight acceptance of cashless transactions by the fast food industry.

The survey was conducted by USAT from the analysis of 633,120 cashless transactions totaling $1.2 million in value through 500 mainstream vending machines equipped with the e-Port® cashless transaction readers. Click on the following link to view one sample of the survey results: http://www.usatech.com/imgs/e-port_cashless_survey.jpg

"This is the most important confirmation we have that when people use credit and debit cards when purchasing from vending machines, they buy more," said Jim Turner, VP & Channel Manager Intelligent Vending® at USA Technologies.

Card purchases at airports, train terminals and roadside rest areas saw a 52% increase over cash, with the average ticket price for a card purchase rising to $2.33, compared with $1.53 for cash. Card purchases at theme parks, zoos, museums, and theatres generated an additional 82% in average ticket, with cardholders spending $3.29 per purchase, compared with $1.81 for cash.

Vending machines located in office buildings saw a 28% increase in average ticket, and for the first time the average ticket price rose above $1.00.

"The goal of every vending machine operator is to increase what consumers spend in their vending locations, driving greater revenue and profit, and this survey demonstrates that people will buy more when credit/debit is an option for payment," said Mr. Turner.

The survey validates why card companies like MasterCard, Visa and American Express are investing heavily to break into the micro-payments market.

"Card companies see the 8 million placements in the $40 billion U.S. vending industry as one of the last remaining major opportunities to convert to card transactions. They know consumers will buy more from vending machines when using cards just as they know more and more consumers are prepared to use their cards to make micro-transactions of $1.00-$5.00," said Mr. Turner.

"The cashless marketplace is here and now, and consumers want the ability and convenience to pay with whatever is 'top of their wallet'. Vending operators who don't change with the latest payment trends will lose valuable accounts to more progressive and responsive competitors, and the card companies are now helping to drive the trend," Mr. Turner said.