New Data from USA Technologies’ 2013 Cashless Knowledge Base Tracks Positive Impact on Sales for Machines Enabled by Its Cashless Payment Platform
USA
Technologies, Inc. (NASDAQ: USAT), (“USAT”) a leader of wireless,
cashless payment and M2M telemetry solutions for small-ticket,
self-serve retailing industries, today released data from its 2013
Cashless Knowledge Base that demonstrates how a cashless payment
platform can be instrumental in driving additional revenues. One of the
highlights of this year’s study was a Sales Trend analysis that showed a 28%
increase in average revenues and 23%
increase in average transactions for a dataset of approximately
10,000 vending terminals over a twelve month period.
USAT’s Knowledge Base represents cash and cashless payment data
collected from its ePort Connect® service network—a network that
processes over $200 million in cashless, self-serve retail transactions
annually. The 2013 Knowledge Base is designed to help customers optimize
their cashless payment platforms and includes various subsets of vending
machine activity that can be used to gauge incremental revenue post
cashless installation, average transaction metrics and channel
information.
Mike Lawlor, USAT’s Senior Vice President of Sales and Business
Development, unveiled key data from the 2013 Cashless Knowledge Base at
this year’s NAMA OneShow in Las Vegas. Lawlor commented, “Our customers
no longer question whether consumer demand is trending toward the use of
cashless forms of payment; rather, the bigger question we try to address
is: ‘Can it help my business results and if so, how?’ The data, noted
below from the Sales Trend analysis, presents a positive story. We are
not just seeing cashless sales and volume increase over time, as last
year’s study pointed to, but we are seeing growth in cash sales as well.
In our view, that tells us that cashless is doing more than just
replacing cash—it’s bringing in business.”
12-Month Study
The data used for the Sales Trend Analysis, consisted of
qualifying data from approximately 10,000 cashless vending terminals
with data tracking beginning the first month after installation.
Qualifying data was defined as data from cashless deployments that
started after 12/31/2010, generated at least $1,000 in cashless sales by
the end of the 12-month period following installation and had at least
12 months of data available.
Highlights:
-
28% increase in average
monthly vending sales (credit and cash), fueled by 79% increase in
credit sales; 17% increase in cash sales.
-
23% increase in average monthly
vending transactions (credit and cash), fueled by 74% increase in
credit transactions; 15% increase in cash transactions.
3-Month Study
USAT also evaluated data over a three month period, from January-March
2013, from approximately 62,000 ePort Connect cashless vending terminals
that had at least $500 a year in annualized cashless sales.
Highlights:
-
The average
credit “spend” was 30% higher than a cash vend.
-
The rate of cashless usage more than doubled for a $3
transaction compared to a $1.00 transaction.
Conclusion
“In our view, a cashless payment platform can prove to be one of the
most impactful investments a business can make,” continued Lawlor. “With
the onset of mobile payment, new loyalty programs and major beverage
companies like Coca-Cola recently talking with the NFC Times about the
importance of cashless (view
article), we believe there is no better time to plan for widespread
cashless adoption. In fact, a recent NAMA OneShow recap published by
Emily Refermat, Editor of Automatic Merchandiser (view
blog), reinforces USAT’s view that business owners and operators in
our market segment should move quickly to benefit from the 'cashless
effect' today.” In her blog, Ms. Refermat states:
“There was a time, not too long ago, that technology was just for the
front runners or large businesses, but now, it’s become a necessity for
many more operations. Vending to manufacturing facilities and huge end
user populations is just a memory. To survive in this environment,
operators need to run their businesses smarter, more efficiently and
over deliver to be successful.”
USAT believes the trends indicated in the 2013 Cashless Knowledge Base,
as well as statements such as those appearing in the NFC Times and
Automatic Merchandiser above, combined, are encouraging indicators
regarding future adoption of cashless payment in the vending industry.
For more information on USAT’s 2013 Cashless Knowledge Base, contact a
USA Technologies sales representative at 1-800-633-0340. Existing
customers can also request customized reports which enable them to track
individual performance against USAT’s Cashless Knowledge Base metrics.
Disclaimer:
USAT does not endorse, take responsibility for, or make any
representations or warranties in connection with the aforementioned
article or blog and is supplying the hyperlinks to the blog and article
solely for the reader’s general industry information.
About USA Technologies:
USA Technologies is a leader of wireless, cashless payment and M2M
telemetry solutions for small-ticket, self-serve retailing industries.
ePort Connect® is the company’s flagship service platform, a
PCI-compliant, end-to-end suite of cashless payment and telemetry
services specially tailored to fit the needs of small ticket,
self-service retailing industries. USA Technologies also provides a
broad line of cashless acceptance technologies including its NFC-ready
ePort® G8-G10, ePort Mobile™ for customers on the go, and QuickConnect™,
an API Web service for developers. USA Technologies has been granted 85
patents; and has agreements with Verizon, Visa, Elavon and customers
such as Compass, Crane, AMI Entertainment and others. Visit the website
at www.usatech.com.
Forward-looking Statements:
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: All statements other than statements of historical fact
included in this release, including without limitation the financial
position, anticipated connections to our network, business strategy and
the plans and objectives of USAT’s management for future operations, are
forward-looking statements. When used in this release, words such as
"anticipate", "believe", "estimate", "expect", "intend", and similar
expressions, as they relate to USAT or its management, identify
forward-looking statements. Such forward-looking statements are based on
the beliefs of USAT’s management, as well as assumptions made by and
information currently available to USAT’s management. Actual results
could differ materially from those contemplated by the forward-looking
statements as a result of certain factors, including but not limited to,
business, financial market and economic conditions; the ability of USAT
to use its Knowledge Base to accurately predict future market conditions
and consumer behavior; the ability of the Knowledge Base or USAT to
predict any level of incremental revenues or net operating profit for
any particular location or vending machine; the possibility that all of
the expected benefits from adoption of cashless payment and wireless
telemetry, including incremental revenues and profits, will not be
realized by vending operators, or will not be realized within the
expected time period; and whether, and to what extent, new innovations
in mobile payment technologies will result in increased sales. Readers
are cautioned not to place undue reliance on these forward-looking
statements. Any forward-looking statement made by us in this release
speaks only as of the date of this release. Unless required by law, USAT
does not undertake to release publicly any revisions to these
forward-looking statements to reflect future events or circumstances or
to reflect the occurrence of unanticipated events.
G-USAT
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