COIN & NOTE HANDLING
Where to for coins and notes in vending?
With contactless payment methods becoming the norm, is there still a place for coins and notes in vending?
T
he Vending & Automated Retail Association (AVA) is well placed to gauge which way the wind is blowing when it comes to vending payments following an annual census which
examined transaction in the industry. According to David Llewellyn, AVA chief executive, :
“Advancements in technology naturally mean that contactless payment will be the preferred method for almost all consumers, however, for now at least, there is still a place for cash purchases in the vending industry. Whilst the obvious shift towards contactless payment is beyond
doubt, to rule out the use of coins and notes would result in consumer exclusion on a large scale. According to the AVA census, 32% of transactions at UK vending machines were completed via cash in 2021. It may seem that based on these statistics, there remains a clear need to allow cash transactions within vending, however these figures are a huge drop from previous years. The AVA annual census shows that in 2017, 66% of transactions in vending machines were completed using cash compared to just 34% cashless. Post Covid-19 pandemic and because of vast developments in technology, in 2021 68% of purchases were cashless and as stated earlier, only 32% were coin and notes. “This suggests that the demand for vending machines to take cash payments is present, but drastically falling. It is only a matter of time until the vending industry fully transitions away from cash payments, with the sector already making huge strides to increase the number of machines that support cashless payments. “Furthermore, the type of cashless transactions can further provide
proof that the vending industry is progressing towards a contactless domain. In 2017, 46% of all cashless payments were completed via contactless card, however fast forward to 2021 contactless payments totalled 58% of all cashless payments. “Although it is without question that the vending industry is
shifting away from cash to focus on digital cashless payments, there is still a demand for cash. At present there are 2.7m people in the UK who are entirely dependent upon cash and the sector will need to continue to support that.”
A RETAILER’S PERSPECTIVE… Pan European unattended self-service retailer Selecta has seen a
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similar trend in the fall in cash payments at vending machines. Owner associate, Sarina Kunzli said: “We have seen a shift toward contactless payments across our whole portfolio of food tech solutions that we offer in the workplace and on the go. While coins and notes have been the norm and still play a significant role in many of our markets, we see more and more a shift toward cashless payments. “In some markets, like the Nordics, this shift is nearly complete to cashless. In other markets, like the southern European markets, coins are still important for many clients – but are slowly being replaced there as well. “As a result, we have invested in a partnership with Fiserv to offer a wide range of payment methods to our clients. Making a smooth consumer experience for cashless payments will likely further encourage the shift towards contactless in the future.” Selecta’s vision is to have a ONE Selecta technology solution that will support cashless interactions across its operations and enable future development and integration. The company is leveraging a pan-European payments solution from Fiserv that will support payments with global and local card schemes and mobile apps at the point of sale. Selecta is also evaluating a mobile payment app, which will include access to a Selecta loyalty programme.
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