CASHLESS VENDING
Furthermore, the total value of contactless payments jumped 49.7% as consumers made use of both the £100 contactless limit increase and the freedom to shop in stores again post-COVID. “Since vending is predominantly low-value transactions – often less than £5 – most operators are equipping newly deployed machines with contactless-only payments. “While many vendors use contactless only card readers on their vending machines, they are still concerned about the possible downsides. Low-value transactions (under £50) are exempt from the SCA (Strong Customer Authentication) rules; however, every contactless card has a transaction counter, which only allows 5-10 contactless transactions before requiring the cardholder to authenticate the card with a PIN. “If you don’t provide a PIN pad on the machine, the user can’t do this, so you risk losing a transaction. Most users will simply try another card or use their Apple Pay or Google Pay. Despite vendors’ concerns, adopting cashless payments will ultimately lead to more transactions as customers are used to paying this way. Cashless payments will continue to increase in adoption and will be the preferred option for consumers at vending machines, resulting in a more seamless, frictionless payment experience for consumers.
LEVERAGING MOBILE PHONE PAYMENTS VMC’s attention is turning towards the way in which consumers are interacting with contactless payment to see what new sales and growth opportunities this could bring. Mobile phone payment is on the rise and the move from cash and card payments to using Apply Pay and Google Pay is a significant one. Laura Barwell, head of sales comments: “The next natural step for
operators is to think about how they can leverage the increased use of mobile phone payments to their advantage. By adding options like loyalty and rewards they can maximise sales and encourage repeat purchasing. Introducing an app that combines all these features with payment is another great way to get the user more engaged. The beauty of our payment solutions is their flexibility, so for those just looking for a quick fix with contactless we’ve partnered with Payter to offer their 4G-ready reader as it’s very quick to set up and instant connection via SIM enables immediate service too.” “Contactless payment alone has many benefits in vending but combined with extra functionality the operator can get so much more from it. We’ve built VMC Flex with adding value in mind, creating features that increase sales, improve the customer experience, and give operators a deeper insight into their customers purchasing habits to improve stock management and sales. We’ve also created a ready-made app that can be customised to suit the client.”
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PIN ENTRY CAPABILITY Crane Payment Innovations product manager, connected hardware, Patrick J. Richards says: “As consumers get more comfortable interacting with cashless devices on vending machines, there is an opportunity to capitalise on this by offering a higher degree of consumer engagement. It’s no secret that everything we as consumers interact with has a screen. Starting in 2023, expect to see more cashless readers with touchscreen displays, with the ability for operators to customise the content being served to consumers and promote products in the machines. Operators can now deploy a standardised advertising / digital platform across all machines in their entire fleet without a massive investment. Mr Richards says we can also expect to see a rise in devices with PIN entry capabilities to overcome the SCA issue mentioned above. “We’ve all experienced sporadic issues where we are prompted for a PIN after performing multiple contactless transactions in a row or exceeding our card limit. Having the ability to enter a PIN on the cashless device keeps our consumers happy and protects the sale. “2023 is shaping up to be an exciting year of growth for operators
across the UK as workers go back to work, let’s ensure the technology on our machines continues to evolve to keep up with consumer demand for frictionless cashless payment.”
PERSONALISATION Lewis Zimbler, general manager, Nayax UK, contends that both consumers and business owners save time with cashless payments, while in unattended retail, cashless transactions equate to fewer machine malfunctions. “There is no longer a need to take out cash at the ATM, to deposit money at the bank, or to wait for change at the vending machine. On top of your typical credit and debit cards, customers can also pay with mobile wallets and even via their smart watch nowadays. These newer payment methods mean consumers no longer need to make sure they have their wallet on hand, and don’t have to worry about canceling their card if it is misplaced. Mobile wallets also have the added value of personalisation. These technologies can be leveraged by retailers and operators to increase consumer engagement and loyalty. This can be done through punch cards, marketing campaigns, top-up bonuses, personalized discounts, digital prepaid cards, push notifications, alerts, and more. “We see the shift towards personalisation as the next and most
important step in cashless payments. 2023 will be the year that retailers’ focus will be on retaining existing customers and converting them to brand advocates with these new and developing tools,” Mr Zimbler concluded.
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