Michigan State University Study, in Partnership with USA Technologies, Finds Revenue Increases of 110% After Cashless Payment...
April 25 2019 - 7:30AM
Business Wire
Low Performing Machines Studied Increased
Cashless Sales by 131% and Cash Sales by 97% after 18 Months of
Connectivity to USAT’s Cashless Payments Platform
The NAMA Show - While many vending operators prioritize
equipping high-volume machines with cashless technology, a recent
study found that low performing machines can offer significant
revenue growth as well. According to a recent study that was
conducted by Michigan State University (MSU) in collaboration with
USA Technologies (“USAT”), a premier
digital payment, consumer engagement and logistics service provider
for the self-service retail market, vending operators who added
cashless technology to machines with less than $2,000 a year in
sales experienced top line sales growth of 110 percent on average
over the first 18 months following deployment; this compares to the
average 35 percent increase on the total population of
machines.
The study found that, following deployment of cashless
technology, machines experienced an increase in cash sales as well.
While cashless sales increased by 131 percent on low performing
machines after 18 months compared to 78 percent on the total
population of machines studied, cash sales increased by an average
of 97 percent on the low performing machines during that same
period, compared to 17 percent on the total population of
machines.
Results of the full report will be presented by Jim Turner, data
analyst at USA Technologies, during the NAMA Show on Thursday,
April 25, 2019 at 11:00 AM on the Show Floor, NAMA Learning
Lab.
“We believe that the results of this study underscore the real
financial and operational value of adding cashless technology to
every machine,” said Jim Turner, a senior data analyst at USA
Technologies. “Not only could cashless technology facilitate more
sales because it enables people to pay with whatever method is most
convenient for them, but it could significantly increase cash sales
as well, which is partially driven by the ability to offer premium
products and an increased awareness of machine performance due to
online management tools. We believe that having the data to make
better decisions, even on a low-performing machine, can potentially
result in significant additional revenue for operators.”
The study also found that on average, over the first 18 months
following deployment, for machines equipped with cashless
technology:
- There was a 26 percent growth in total
transactions
- There was a 74 increase in credit card
transactions and 13 percent increase in cash transactions
- 70 percent of all growth was accounted
for by increased transactions
- Spend per transaction was up seven
percent overall
The study was conducted by Michigan State University’s Broad
College of Business - MS Business Analytics (MBSA) program, which
provides an educational experience that combines a number of
University resources in addressing the study, research, and
application of analytics. As part of the program, USAT provided MSU
with access to its “Knowledge Base” database which captures sales
and transaction data on all machines connected to USAT’s cashless
payments platform. MSU then analyzed the data on select machines to
evaluate sales activity up to 18 months following the addition of
cashless technology. Results were based on sales activity of
250,000 vending machines connected to USAT’s cashless payments
platform nationwide, including 95,000 low performing machines.
“MSU’s MSBA program conducts eight to eleven studies per term
with industry partners as capstone projects. We are happy to have
partnered with USA Technologies on this study of consumer behavior
around cashless technologies on vending machines, the largest study
of its kind,” said Gayle D. Cohen, M.Ed., Assistant Director of
Graduate Programs at Michigan State University. “Projects like the
one with USA Technologies provide a great opportunity that allows
MSU students to get valuable first-hand experience in computational
business analytics, machine learning, and big data analysis.”
About USA Technologies
USA Technologies, Inc. is a premier payment technology service
provider of integrated cashless and mobile transactions in the
self-service retail market. The company also provides a broad line
of cashless acceptance technologies including its NFC-ready ePort®
G-series, ePort Mobile® for customers on the go, ePort®
Interactive, and QuickConnect, an API Web service for developers.
Through its acquisition of Cantaloupe Systems, Inc. ("Cantaloupe"),
the company also offers logistics, dynamic route scheduling,
automated pre-kitting, responsive merchandising, inventory
management, warehouse and accounting management solutions.
Cantaloupe is a premier provider of cloud and mobile solutions for
vending, micro markets, and office coffee services.
Useful Links:
USA Technologies: https://usatech.com/
Twitter: https://twitter.com/usa_tech
YouTube: https://www.youtube.com/user/USATechnologies
Resource Center:
https://usatech.com/resource-center/the-benefits
Sales and Partnership Inquiries:
Please contact USA Technologies, Inc. at +1 800.633.0340 or
sales@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 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 and/or MSU to predict
future market conditions and consumer behavior; whether consumers
will continue to increase their purchases at vending machines in
the future; the extent to which deployment strategies affect return
on cashless investment; and the possibility that all of the
expected benefits and efficiencies from cashless payment services,
including increases in cashless and cash revenue on vending
machines in general, and low performing vending machines in
particular, will not be realized by all vending operators and on
all vending machines or within the expected time period. 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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