Payments

How to Boost Your Vending Sales with Cashless Payments

November 22, 2023 | By Cantaloupe, Inc.

How to Boost Your Vending Sales with Cashless Payments

Since 2017, there’s been a steady increase in cashless payments at vending machines in the UK. In fact, cashless options have increased to 55% of vending machine payments.

Cantaloupe recently hosted a virtual seminar with Owen Baker, finance director at Decorum Vending and Shaun Burger, Cantaloupe’s managing director, EMEA, to discuss how you can make the most out of cashless payments and how to plan upgrades and prepare for the UK 3G sunset. Here, we’re breaking down some of the main points of the discussion. Watch the webinar on-demand by hitting the link below.

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Cashless payments drive more revenue.

Cashless payments have transformed the way we purchase goods and services. Vending machines are no exception.  Businesses who have transitioned from cash to cashless payments are already seeing the benefits of the technology adoption.

Cantaloupe has observed that when vending operators provide cashless options, their sales increase by 25% on average. On top of that large increase in total sales, the size of their individual sales, or basket size, increases by 55%.

“When we moved fully cashless, we were seeing a 32% increase in sales average across the board,” said Owen Burger, Decorum Vending.

Why is that?

Customers also benefit from this shift to cashless payments at vending machines. They no longer have to carry around money or worry about having enough change on hand. All they need to make a purchase is a card or mobile device, which is simpler and faster.

Going cashless reduces business costs.

Cashless payments are transforming the way businesses manage cash in their vending machines. For vending machines that offer both cash and cashless payments, the amount of cash in a machine at a given time is largely reduced. This lessens the burden on operators when handling, counting or any banking fees associated with cash.

“For us, going cashless has been a dream. We have no stress, no headaches, no worrying about if cash (from our vending machines) is going to make it to the van, to the office, to the bank.” Owen Burger, Decorum Vending

For businesses that have gone fully cashless, there are no more concerns about cash handling, or the associated costs for labour and time. The less time spent at machines, the more efficient the route. You or your drivers can attend to more machines more quickly — getting more work done in the day and not have to run to the bank. Switching to a cashless operation can significantly reduce the time and costs of manually counting coins and cash.

Prepare for the UK 3G sunset now.

“By the end of 2023, major cell providers like Vodafone, O2 and BT will deactivate their 3G networks. The UK 3G sunset will affect vending machine businesses, since older readers won’t work with newer technology.

You should start to prepare yourself for the upcoming changes now. Check out our 3G Sunset webinar to learn more about how you can prepare yourself and your organisation for the upcoming sunsets.”

How do you do that?

First, evaluate your existing card readers to determine if they’re compatible with new technologies such as 4G, contactless payments or Near Field Communication (NFC) chips.

Then, develop a plan for any hardware or software requirements needed to upgrade your systems. It takes time to roll out new equipment, so be realistic with your timelines and understand your personnel capabilities.

Finally, leverage your team. Ask questions of your provider to understand how to do it right. Cantaloupe has an amazing customer success team that is incredibly knowledgeable in installation processes and vending machines themselves. Let them guide you through the upgrade process and the rewards will be massive.

By taking these steps now, you’ll be ready when the UK 3G sunset happens. Use this time to switch to cashless vending. It will simplify your business and increase your revenue. So don’t wait any longer — start the upgrade process today.

Author

Cantaloupe, Inc.

Cantaloupe, Inc. is a digital payments and software services company that provides end-to-end technology solutions for the self-service economy.

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