In today's fast-paced world, the demand for convenience and efficiency is at an all-time high. Unattended retail businesses, such as vending machines, coffee services, micro markets and other, are uniquely positioned to meet this demand. However, to truly capitalize on this opportunity, these businesses should predict consumer habits and embrace them as they emerge. That concerns both the products that meet customer cravings and simplicity in getting the desired item — including convenient ways of payment.
Cashless payments in vending are easy to adopt by installing a contactless POS device at your machine, and that can make an important difference for your business and your clients.
Consumer Preference for Cashless Payments
The shift towards cashless transactions is undeniable. In 2022 the use of cash declined by its largest margin in the history of cash since its origin in 650 BC.
Globally several countries are now on the verge of being functionally cashless. That means that while cash is still available in the economy, both individuals and businesses can quite happily operate in a totally cashless environment. Statista predicts total transaction value in the Digital Payments market to reach US$11.53tn in 2024. Reports indicate that cash payments now represent a mere 16% of all transactions and the downward trend persists. Which makes the global share of cashless payments around 84%. The list of countries where internal penetration of cashless transactions reaches more than 90% includes: Norway, Finland, New Zealand, Hong Kong, Sweden, Denmark, Switzerland, the UK, Singapore, the Netherlands (according to Payments Cards and Mobile).
This trend is even more pronounced among younger consumers, with 88% of Millennials and Gen Z preferring cashless payments. By offering cashless options, unattended retail businesses can cater to the preferences of a significant portion of their customer base.
The estimate of the current share of cashless payments in vending is at 67%, growing annually.
Offering cashless payment options leads to increased sales. Research by USA Technologies and Michigan University revealed that vending machines equipped with cashless payment systems saw a 26% increase in sales compared to those that only accepted cash. Most probably due to the fact that consumers are more likely to make impulse purchases when they can pay with a card or mobile wallet, rather than being limited by the cash they have on hand. The market data also shows that the average bill size on the machines using cashless vending POS devices is more than 55% higher (2,11 dollars versus 1,36 dollars).
Enhanced Convenience and Speed
Cashless payments, including contactless options, significantly reduce transaction times. A study by Mastercard found that contactless transactions are on average 10 times faster than traditional cash transactions. For unattended retail businesses, this means quicker service and shorter wait times, enhancing the overall customer experience. Whether it's a vending machine or a coffee service, the ability to quickly and easily make a purchase can be a major selling point.
Cashless payments can also enhance the convenience of vending operators. Handling cash comes with inherent risks and costs, including theft, counterfeit money, and the need for regular cash collection and transportation. Cashless payments mitigate these risks, providing a more secure transaction environment. Additionally, the operational costs associated with cash handling can be significantly reduced, leading to better profit margins for unattended retail businesses.
Easy Adoption with Modern POS Solutions
Cashless in vending comes in various forms: traditional credit card payments at vending machine, NFC-based mobile payments such as payment for your coffee with Apple Pay or Google Pay and QR-payments when you scan a QR-code to complete a transaction and get a snack from a smart fridge.
A vending operator can choose an option that better fits their needs. That’s why, rather than acquiring a traditional card reader for vending machines, businesses more and more often place their preference towards functional all-in-one payment POS with touch-screen that can work with any payment option and also doubles as a telemetry device. Aurency A250 is an example of such a universal contactless POS solution — more than 100 thousand vending, coffee, entertainment machines, laundromates and car washes already use it all over the world to get advantages from adopting cashless.
Modern unattended retail solutions, such as those offered by Aurency, come equipped with advanced interfaces like MDB (Multi-Drop Bus), EXE (Executive) and Pulse Interface. These interfaces facilitate seamless integration with cashless payment systems, ensuring smooth and reliable transactions. The MDB interface, for instance, is a widely adopted standard in the vending industry, allowing for easy connectivity between payment systems and vending machines.
Future-Proofing Your Business
As technology continues to evolve, the trend towards cashless and contactless payments is only expected to grow. By adopting cashless payment solutions now, unattended retail businesses can future-proof their operations, staying ahead of the curve and ensuring they remain competitive in an increasingly digital marketplace.
The benefits of offering cashless payments for unattended retail businesses are clear. From meeting consumer preferences and enhancing convenience to increasing sales and improving security, the advantages are numerous. Embracing cashless payments is not just a trend; it’s a strategic move that can drive growth and success in the unattended retail sector.
Aurency is committed to providing affordable, all-in-one POS solutions that empower unattended retail businesses to thrive in this cashless era. Aurency A250 is an universal POS-terminal for unattended retail. The solution works across multiple verticals of unattended retail and is compatible with almost all types of vending machines, corporate coffee machines, laundromats, car washes, massage chairs, kiddie rides etc. It can be connected via MDB, Pulse or XE interface, has a bright touch-screen and built-in GSM antenna.
Make the switch today and unlock the full potential of your business.
