Vending Machines Increase Sales 35% after Accepting Cashless Payments
Michigan State University conducted an 18-month study evaluating the impact of cashless payments on vending machine sales. Their research showed machines with less than $2,000 in annual sales increased revenue by an average of 110% after the installment of cashless technology.
“Cashless technology” mostly refers to credit and debit card acceptance at vending machines, but it could also include mobile wallet payments on smart vending machines. Machines saw an average growth of 35% after installing cashless payment services, no matter how well they performed before.
The most notable finding from the survey was that even cash sales increased after the addition of cashless technology. Low-performing vending machines experienced a 97% increase in cash sales over 18 months, compared to 17% of all machines. Cashless sales increased by 131% in the low-performing machines and 78% in the total population.
The Michigan State study was conducted in partnership with USA Technologies, based on sales activities for over 250,000 vending machines. During the year-and-a-half span, machines experienced a 26% growth in total transactions and a 7% increase in spending per transaction. Credit card transactions increased by 74%.
Cash may still be a go-to choice for vending machines, but 56% of Americans believe the country will be completely cashless by 2030. Several states are working to derail that vision though, with legislation that requires stores to accept cash for transactions.