PAYMENT SYSTEMS
Post-pandemic payment systems
The pandemic has seen a shift towards contactless payment in vending, but is this trend set to continue and how is the vending industry futureproofing? Here VI sought the views of a cross section of industry role players about what payment systems will look like going forwards.
AutomAtic Vending AssociAtion chief executiVe dAVid LLeweLLyn In the last year, consumer behaviours have changed considerably as a result of the COVID- 19 pandemic. We have seen a rapid acceleration in the adoption of cashless technologies, and coin-based vending machine operators and manufacturers have been encouraged to consider integrating cashless payment solutions to their machines. At present, almost half (47%) of all non-free
vending machines support cashless payments, which is a 235% increase in the last three years according to our 2020 AVA census. Cashless payments are now also stretching further than just contactless card payments, as phone payments have increased by 27% in the last three years. The latest AVA census revealed that where
credit card or cashless systems are fitted, two thirds of sales were cashless. This evidences the greater demand for cashless options and in response, the industry has seen a significant growth in cashless-only machines. As consumers grow more comfortable with
these types of payments, it also opens the door for more unattended retail markets, such as micro- market vending. The 2020 AVA census showed there are 200 new micromarkets in operation since last year, with around 320 now installed
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across the UK. In a post-COVID-19 workplace micromarkets are likely to play a greater role to provide refreshments, especially in the workplace due to enhanced flexible working. This level of technology in vending not only
shows that the industry is future proofing, but that it is ready for the future where contactless interaction and customer safety is at the heart of the retail customer experience.
heAd of product mArketing At nmi, pete ALcock Although many nations are gradually emerging from COVID-19-related restrictions, consumers’ fear of touching things, like buttons and PIN pads, is likely to persist. Contactless payment on vending machines and kiosks will therefore remain a top feature request from operators to manufacturers and readers can either be built-in to the machine’s front panel – where sanitising is especially easy – or flush-mounted. Looking at the growth of contactless
transactions in just the UK over the past five years, it’s seen a virtually straight-line growth since 2016. With the recent increase in the transaction limit, there’s no reason to suppose it will slow down any time soon. So what do operators have to do if their
machines aren’t already contactless-capable? It’s
possible to contract with an “all-in-one” supplier that will provide the reader, an interface to the machine and even the card processing account into which the contactless transactions are sent, and they promise to make the process straightforward. This has the advantage of giving the operator “one throat to choke” if things don’t go smoothly, but the downsides include lengthy contracts to be locked into, limited choice of a card reader, and the card processing commissions are high. An alternative is to have the machine
integrator or service company purchase industry-standard card readers from manufacturers such as CPI, Payter, Ingenico or OTI, and install these into the machine. Most
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