The recent Covid-19 pandemic has heightened the need for cashless technology in businesses. And the vending machine industry is not exempted. It has to adapt to these cashless technologies to benefit customers and everyone involved as it deals with financial transactions.
As we all know, healthcare professionals advise people to be cautious when using cash and coins. However, approximately 25% of Australia-wide are still using cash, although many cashless methods have already been introduced in recent years.
Hopefully, through these five interesting facts, we can influence you and other business owners to turn to cashless payment for vending machines:
Fact #1: There Are Several Types of Cashless Payments
There are cashless technologies you can incorporate with your business. To ensure you’re choosing the right one, you need to consider your company’s goal.
Here are the three common cashless payment methods used today:
a. Unstructured Supplementary Service Data
As a prominent marketing tool and a payment method, USSD comes to the rescue. It does not require any data, internet, or load to function. It can make payments by only using standard mobile phones.
All you have to do is make sure your mobile phone number is linked to a bank account. And with the right information and the correct USSD code to connect with an interactive voice menu, you can be sure of a successful payment transaction.
b. Mobile Wallet Apps
One of the most popular cashless transaction methods involves using a mobile wallet application. This app offers three payment-related features: sending, receiving, and storing money. You can simply link your bank account to cash in for vending machine payments.
Coca-Cola, for example, has created a loyalty card that you can link to your Apple Wallet or Google Play account. The Coca-Cola Vending Pass is compatible with specific vending machines in Australia, including Sydney and the Gold Coast.
When you use your Coca-Cola Vending Pass on your mobile wallet to make a purchase, you’ll receive a reward of your choice at selected Coca-Cola vending machines.
c. Quick Response Code
You’ve probably heard of QR codes being used for product scanning. These have been reinvented to help generate the information required for a contactless transaction.
By scanning the QR code, you can specify the amount of the product and make a payment. Most vending operators generate a unique QR code via a website portal, which can be emailed to the buyer’s mobile phone along with transaction information.
That is to say, in these unprecedented pandemic times, this is a sure fast and secure process.
Fact #2: The Cost of Cashless Payment Is Lower
Cash is an undeniably popular form of payment, which is why many vending machine owners continue to accept cash payments. Because most of them believe that cash is more convenient than other forms of cashless payment in vending machines, it is not surprising why the former has long been the preferred option.
This, however, is not always the case. There are numerous hidden costs associated with using physical cash, such as the cost of a service call due to coin and bill issues.
Evidence
According to a recent Vending MarketWatch study, every machine has ten calls per day. And, as expected, 60 per cent of the calls are related to a problem in money acceptance.
So, when your vending machine accepts cashless payment methods, there is a small margin of error in the entire process, such as lesser calls, fewer technicians to call, and fewer trucks to use. This generates more savings for your business.
Fact #3: Australia’s First Vending Machine Goes Cashless
Vending machines today have adapted to different changes to meet the needs and demands of customers. Some of these changes include using automatic features to make business management easier and more convenient.
Evidence
Reis & Irvy’s company is one of the first fully-automated vending kiosks in the country. Their machines are operating 24/7 and can dispense products in 60 seconds.
With their machines becoming more advanced, they’ve integrated various features, such as an integrated cashless payment method. True to its progressive mission, the company partnered with Nayax Australia to be the sole cashless payment provider for the robotic vending kiosks known as Froyo Robots.
Fact #4: Cashless Payment Methods Boost Revenue by Up to 85%
One of the reasons people prefer this method is its strongly encrypted security and well-documented cash flow. This prevents thieves from quickly getting what they want if your money is inside a secured application rather than just having cash in the house.
Evidence
A recent study in 84,000 vending machines in the United States demonstrates how an average monthly sales of $104 can be increased to $193 using a cashless transaction system.
Furthermore, Vending Article has supported this data by conducting a further study. The results show that an average payment transaction for cashless vending machines is 40 cents more than the machines that only accept cash.
Fact #5: More Products Can Be Purchased With Cashless Payment
Most buyers do not carry a large amount of cash with them, preventing them from purchasing numerous products from your vending machine.
However, with cashless payment vending machines, patrons or new customers can buy anything they want without the hassle of carrying large amounts of cash because this can be done with a simple card linked to their bank account.
Evidence
According to Moody’s Analytics, electronic payments increased consumption by an average of 0.7% across the 56 countries studied.
In other words, there are no limits to the number of products you can sell, resulting in a positive impact on the global economy.
When You Want to Go Cashless, Let TCN Vending Australia Help You!
TCN Vending Australia has been a consistent supplier of custom-built vending machines throughout Australia. We make sure to provide our clients with the best type of vending machine tailored to their preferences, from snacks to beverages and every exciting product.
With over a decade of experience in this industry, we are constantly striving to master the changing needs of business owners, particularly with cashless payment vending machines.
So, if you intend to use cashless transactions, know that TCN Vending Australia is your preferred supplier of high-quality vending machines. Please get in touch with us on 1800 959 910.
