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.