New Data from USA Technologies’ 2013 Cashless Knowledge Base Tracks Positive Impact on Sales for Machines Enabled by Its Ca...
May 08 2013 - 7:30AM
Business Wire
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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