The COVID-19 pandemic has accelerated the acceptance of cashless payments and has encouraged coin-based vending machine operators and manufactures to consider integrating cashless payment solutions into their vending machines.
Since the arrival of the novel coronavirus, the vending industry has experience multiple changes and setbacks. In April machine operators observed the largest decline in average sales per machine due to lock-down and not being prepared for impact of COVID. By May, the market showed signs of recovery, being driven by cashless payments, specifically contactless payments and merchants thinking outside of the box in extending their product/sales in the unattended retail/vending market. The cashless terminals saw an overall phenomenal growth in July and August. The accelerated adoption of cashless has spurred many in the industry to integrate this payment method into their business model. Cashless payments are an attractive alternative, as a matter of health and safety, security, as well as a notable increase in average transaction size.
While machine operators have long battled various barriers to adoption of cashless and contactless payments — such as the overall investment in purchasing and implementing smart payment technology — the pandemic and consumer behaviour has heartened them to reconsider due to the increase usage for cashless and contactless payments. As consumers grow more comfortable with these types of payments, it opens the door for unattended retail markets to have greater acceptance in public and semi-public locations.
The key trends that have emerged amongst consumers were the shifts in payment method and changes to products and services offered as a result of changing consumer demands. Operators pivoted to offering new products and services, Luxurylaunces shared the latest trend in flashy vending machines selling expensive items ranging from caviar and designer perfume to diamond bracelets and even gold. The humble coin-operated vending machine
has evolved into a little revolutionary stand-alone retail model that incorporates the latest in technology, accepts debit or credit cards, and sells crazy products that would have been completely unthinkable a few years back.
The benefits of completely cashless vending machines
Increase revenue and salesConsumers are carrying less cash and are more inclined to spend money on card. Integrating
Kashing’s cashless payment solution will see revenue increase up to 30%, and enable flexibility in pricing that is not available when paying with cash. Customers will be able to pay with their mobile phone for a seamless, touch-free checkout experience using various forms of payment including Apple Pay, Google Pay or pay with contactless chip cards in a "tap and pay" option.
Speed and convenience
The speed to pay by contactless offers consumers a much faster and more convenient purchase. Without the need of digging through their pockets looking for change, they can simply tap and pay.