Credit Card Transactions driving increased return
WAYNE, Pa., April 11 /PRNewswire-FirstCall/ –USA Technologies Inc. (OTC Bulletin Board: USTT) disclosed today that nine
months after the commercial introduction of its e-Port swipe card technology
in vending machines nationwide, cashless vending transactions are averaging 15
percent of the total vending transactions, and the trend is accelerating.
A survey of tens of thousands of transactions processed by USA
Technologies indicates that credit card transactions at hundreds of vending
machines located in the retail industry, on college and university campuses,
business and industry accounts, and airports and convention centers, currently
range between 15-20% of all transactions. By all measures, the adoption curve
is considered to be impressive.
“The survey proves what we have known all along; consumers are rapidly
accepting the notion of making cashless vending purchases for the obvious
reason – convenience,” said Stephen Herbert, President and COO, USA
Technologies, Inc. “And it reinforces our vision of a cashless society where
consumers can purchase every conceivable type of consumer product or service
from a vending machine or similar dispenser with the swipe of a credit card,
click of a cellular phone button, or keying in a pin number,” he said.
The study also indicates that location operators are experiencing an
increase in the ‘average ticket’ sale when a consumer utilizes a credit card
vs. cash for a vending purchase. On average, consumers’ purchase amounts are
approximately 35% higher when using their credit card to make a purchase at a
vending machine. Additionally, overall unit sales known as ‘throughputs’ in
the vending industry are increasing an average of 20% per location. This, in
the Company’s belief is driven by the fact that the credit card is the US
consumer’s preferred method of payment. There are over 1.3 billion credit
cards in circulation in the United States alone.
These results indicate that vending operators are not only providing their
customers with added convenience, but also an improved return on investment on
locations in which they offer e-Port technology. By placing machines on the
e-Port network – USALive(TM) – vending operators not only enable cashless
transactions, but also collect important operational data from each machine.
And because the amount of cash in each location is dramatically reduced and in
some cases eliminated, security is enhanced for both consumers and vending
Earlier this month USA Technologies announced it had combined resources
with IBM to market a wireless service for the traveling public that could
revolutionize the hospitality industry – a hotel room key solution that could
be used to make purchases from vending machines located inside the hotel.
Soon, the solution will be expanded to allow hotel guests to access Laundromat
facilities or access a personal computer and other office equipment in the
hotel business center. The cost of each transaction will automatically be
added to the room bill. Guests at the recently opened luxurious Gaylord Palms
Resort & Convention Center in Orlando, Florida, already can use their hotel
room key-card to purchase beverages from any of the beverage vending machines
conveniently located throughout the hotel. USA Technologies and IBM are in
discussions with multiple major hotel chains regarding this exciting new
solution. An outline of this offering is available at
“The increasing trend towards cashless vending is but one factor which has
helped put USA Technologies in a pattern of quarter to quarter revenue
growth,” said Mr. Herbert. “Sales of our e-Port product line are growing,
evidenced by another consecutive quarter of increased shipments and revenues.
And together with the recently announced intent to acquire Stitch Networks, as
well as our recently announced alliance with Mars Electronics International
(MEI), we expect our growth in the cashless marketplace to accelerate,” he
About USA Technologies:
USA Technologies is recognized as a leader in cashless micro transactions,
associated financial/network services and interactive media technology. USA
Technologies provides credit card activated and other cashless/mobile commerce
systems. USA Technologies is an IBM Business Partner and an inaugural member
of the Sprint Enabling Application Service Provider Program for e-commerce.
It has also established partnerships with a number of global IT, multimedia,
and telecommunications companies including Marconi Online Systems, RadiSys
Corporation, DoubleClick Inc., and Xerox Corporation. Visit the USA
Technologies home page at http://www.usatech.com.
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements that
involve risk and uncertainties that may individually or mutually impact the
matters herein described, including but not limited to product acceptance, the
ability to continually obtained increased orders of its products, the ability
to meet installation goals, economic, competitive, governmental impacts,
whether its pending patents will be granted or defendable, validity of
intellectual property and patents of USA, the ability of USA to commercialize
its developmental products, technological and/or other factors, which could
cause actual results or revenues to differ materially from those contemplated
by these statements.
USA Technologies Contacts:
George R. Jensen, Jr., Chairman & CEO
Stephen P. Herbert, President & COO
e-mail: [email protected]
SOURCE USA Technologies Inc.
Web Site: http://www.usatech.com