Rising Consumer Preference for Cashless Purchasing

The vending adage, “no cash, no purchase” is being replaced with “no cash, no problem!”

Accompanying the public’s increased attraction to self service technologies and online applications is a growing interest in the implementation of alternative payment options for traditional cash based transactions.

There are some parts of the vending industry that already accept card payment systems. Innovative payment technologies that are designed to reshape vending transaction are being adopted at an unprecedented rate.

Customers prefer cashless

In the past there was a slow adoption rate for cashless vending. This can be attributed to customer reluctance to use cards for low value dollar transactions, a lack of operator experience with new technology, and its perceived high costs. This is something that is changing, as more Antares operators are becoming aware of the impact that cashless transactions has on a vending operation.

With more than 8 million machines, the vending industry can be described as the largest cash business in America and certainly the most pervasive retail in terms of number of locations.

From an Antares vending operator’s perspective, the cost of hardware, software, and transaction processing have declined to render cashless a much more appealing payment option. This also has drawn the attention of full-line vendors, like the Antares Corporation vending operators.

Cashless transactions rising overall

Over the past decade, there has been a steady increase in the preference for credit cards as a method of payment. Economists have pointed out the fact that credit card transaction volumes had doubled between 1992 and 1998.

To date the vending industry, which is dependent on convenience and service, remains the only major retail channel that does not universally accept cashless forms of payment. It is estimated that 2 to 3 percent of U.S. vending machines offer a credit card payment option. This capability is projected to be 50 percent by the year 2009.

The use of cashless systems by some vending operators has proven to be successful. That means that if you implement in it in your Antares Corp. vending operation, it can be your success story.

Health Issue in the Work Place

Everyone in the vending industry as all too aware that obesity, health and wellness continue to grab headlines. Just about everyday, survey after survey, study after study, analyzes, concludes and calculates just how much fatter our nation’s citizens are becoming each year.

Antares Corp. vending operators with school accounts are quite familiar with the issue and have been forced to address it by offering a wider array of “better-for-you” products or risk losing the account. There are some operators who think that the issue doesn’t affect them. The truth is that the focus on health and wellness is becoming important to all types of accounts and Antares operators interested in succeeding need to learn how to help them address this complex issue.

For a number of reasons, employers and consumers alike are more focused on health and wellness than ever before, so simply sitting back and hoping the issue somehow goes away could wind up putting you out of business.

Issue moves into the workplace

While the issue has been prominent in schools for several years, it is just beginning to move into the workplace. One reason is that there are studies that have outlined the disease’s associated health risks such as heart disease, high blood cholesterol, high blood pressure and stroke, just to name a few.

There are reports that have shown that obesity alone costs employers approximately $12.7 billion each year in health care costs, paid sick leave and life insurance policies. Employers are increasingly eyeing these costs and choosing instead to implement programs that will protect their employees’ health.

Antares vending operators need to get up on speed on health and nutrition as one of the action steps needed for the vending industry to meet the needs of a changing consumer and new market forces. While marketing healthy products might be challenging for the Antares operators, the demographic momentum of aging baby boomers and continued media focus on obesity are powerful forces.

In addition, promoting programs that protect health of the workforce just makes sense. An organization with healthy employees means higher employee morale, a better ability to attract and retain key people, and a more alert and productive workforce.