Adopting cashless payment solutions offers significant benefits for unattended retail businesses, such as vending machines, corporate coffee service solutions, micro markets, laundromats and other, by enhancing customer satisfaction and operational efficiency. In the swiftly changing world of retail, the move towards cashless has become essential rather than optional. This article explores the reasons behind this shift, the specifics of cashless payment systems, and the implementation process.
Why Go Cashless?
Cashless comes with a bunch of benefits for the businesses:
- Consumer Preference: According to a 2021 study by FIS, 70% of consumers prefer using digital payments over cash. This trend is even more pronounced among younger demographics, with 83% of Millennials and Gen Z favoring cashless transactions.
- Operational Efficiency: Handling cash involves costs related to collection, counting, and security. Cashless systems eliminate these expenses, streamlining operations and reducing the risk of theft.
- Increased Sales: research indicates that vending machines equipped with cashless payment options see a 15-30% increase in sales. The convenience of contactless payments encourages spontaneous purchases.
As an increasing number of business owners recognize the potential benefits of incorporating POS devices for contactless, non-cash payments, going cashless is becoming essential for vending businesses. Ultimately, competitive pressure will compel most to adopt this technology.
Now is the perfect time to consider equipping your automated machines with a way to accept card, mobile and QR-code payments, if you haven’t done it already. And if you are in the cashless game - check whether your strategy is optimal and if you can rethink it and implement a better solution.
What Are Cashless Payments in Unattended Retail?
Cashless payments encompass a variety of digital transaction methods that do not involve physical cash. In the context of unattended retail, the most relevant forms include:
- NFC Card-Based Payments: Near Field Communication (NFC) technology allows customers to simply tap their credit or debit cards to make a payment
- Mobile Payments: Services like Apple Pay, Google Wallet, and Samsung Pay enable users to pay using their smartphones
- QR-Code Payments: Customers scan a QR code displayed on the vending machine or kiosk to complete the transaction via a mobile app.
QR-code payments may seem not relevant at the first glance, however, the national QR schemes in AME and Asia drive 400 billion QR-payments in 2024, becoming more and more important. That can be more obvious for Asian countries where QR code payments are a go-to payment method for everybody, but the trend is also present in Europe where the QR-schemes emerge locally and gain popularity among consumers, for example: Satispay in Italy and TWINT in Switzerland.
Here are some types of unattended retail businesses that will benefit and the specific advantages they can gain
- Vending Machines
For example, a vending machine that accepts credit/debit cards, mobile payments (e.g., Apple Pay, Google Wallet), and contactless payments can attract more customers, especially in high-traffic areas like airports and office buildings. - Office Coffee Services
An office coffee machine with POS terminal can accept closed-loop corporate cards issued by companies in the building with a certain balance assigned for a coffee by each employer for its workers - Laundromats
A laundromat that uses a card or app-based payment system can offer loyalty programs and promotions, enhancing customer retention and satisfaction.
- Parking Meters and Garages
A parking garage that allows payment via mobile apps or contactless cards can provide real-time availability updates and seamless entry/exit, improving overall efficiency.
- Automated Car Washes
An automated car wash that uses a mobile app for payment can offer subscription services, discounts, and promotions, increasing customer loyalty and recurring revenue.
- Micro-Markets
A micro-market in an office building that uses a self-checkout system with cashless payment options can offer a wider range of products and a more efficient shopping experience.
All-in-all, if we summarize the benefits of implementing a vending POS device, it comes to the following points:
- Increased Sales - cashless solutions cater to the growing number of consumers who prefer digital payments, potentially increasing sales and customer satisfaction.
- Operational Efficiency - reducing the need for cash handling minimizes the risk of theft, errors, and the costs associated with cash collection and transportation.
- Enhanced Customer Experience - offering multiple payment options, including contactless and mobile payments, provides convenience and speeds up transactions, leading to a better customer experience.
- Data Collection and Analytics - cashless systems like Aurency A250 can double as telemetry and remote management devices. They collect valuable transaction data, track ingredient consumption and register machine operational status, enabling businesses to analyze purchasing patterns, manage inventory more effectively, and tailor marketing strategies.
- Reduced Maintenance - eliminating cash handling reduces the need for maintenance related to coin jams and cash storage, leading to lower operational costs and downtime.
- Security - cashless transactions reduce the risk of theft and fraud, providing a safer environment for both the business and its customers.
These benefits make a POS cashless solution a worthwhile investment for various types of unattended retail operations.
How to Implement Cashless Payments
Implementing cashless payments in unattended retail involves integrating a robust Point of Sale (POS) device that supports various contactless payment methods. That is the most logical and easy way as POS terminals for vending like Aurency A250 are multifunctional and can accept contactless card payments, as well as QR-code payments.
Here’s a step-by-step guide of how you can implement such solution:
- Choose the Right POS Device
Opt for a universal POS solution that supports multiple payment interfaces, including MDB (Multi-Drop Bus) and Pulse Interface. This ensures compatibility with a wide range of vending machines and kiosks. For example, Aurency's A250 POS device offers universal compatibility with over 100 types of machines, from vending and coffee machines to claw machines, amusement rides, car washes, and parking meters. Besides the connection type you should consider what payment option the terminal supports - whether it has a display to show a dynamic QR-code, if it can support closed-loop cards etc. Also pay attention to additional features, such as ability to act as a telemetry modem or protection against bad weather conditions. - Ensure Security
Security is paramount. Look for devices that comply with PCI-DSS (Payment Card Industry Data Security Standard) to protect customer data. - Apply for payment acquiring connection
Processing of payment transactions is performed by financial institutions holding a special license from the Central Bank - you need to secure a contract with one of them to start accepting payments. Usually the provider of vending POS devices already has established partnerships and can facilitate this part of the process for you. Make sure you get a good fit for your budget (the fees vary from one provider to another) and regional coverage
- Integration and Testing
Work with a reliable fintech provider to integrate the POS device with your existing systems. Aurency's A250 POS device comes with ready-to-use APIs for seamless integration with software like CRM and VMS, making deployment and management straightforward. - Customer Education
Inform your customers about the new payment options through clear signage and instructions on the machines. This will facilitate a smooth transition and encourage adoption. - Monitor and Optimize
Use analytics tools to monitor transaction data and customer behavior. Aurency's solution includes telemetry and VMS for remote monitoring and control, eliminating the need for additional equipment.
Aurency: The Best Fit for Unattended Retail
Aurency's A250 POS device distinguishes itself in the market with its exceptional value and comprehensive features:
- Cost-Effective: Our cashless payment solution enables you to start accepting digital payments at a significantly lower cost. It is designed to be budget-friendly without sacrificing functionality.
- Reliable: With over 100,000 installations globally, the Aurency A250 POS device has demonstrated its reliability across diverse environments.
- Attractive and Durable: Featuring a waterproof design (IP67 rated for commercial and outdoor use) and a sleek, minimalistic aesthetic, our contactless card reader seamlessly integrates with any machine.
- Ready-to-Use: Equipped with APIs for easy integration with software systems like CRM and VMS, the payment device is straightforward to deploy and manage.
- Telemetry & VMS: The Aurency cashless payment solution for vending comes pre-integrated with software for remote monitoring and control, eliminating the need for additional equipment.
- Multiple Payment Options: The Aurency A250 supports a variety of payment methods, including contactless debit/credit/prepaid cards, mobile NFC, and QR-based payments.
Conclusion
The shift to cashless payments in unattended retail is not just a technological upgrade; it's a strategic move to meet consumer demands, enhance operational efficiency, and boost sales. By implementing a versatile vending POS device like Aurency's A250, which supports NFC card-based payments, mobile payments, and QR-code payments, businesses can stay ahead of the curve and offer a superior customer experience. Embrace the future of retail with Aurency's all-in-one affordable universal POS solutions and watch your business thrive.
For more information on how Aurency can help you transition to cashless payments, contact our sales team today.
