CASHLESS payment systems: yes but which one to choose?
Speed, hygiene and practicality are now essential characteristics for any payment method in vending. If upstream of the demand for hygiene we certainly find the recent pandemic, otherwise the wishes of users derive from the need for smart solutions and tools, which facilitate daily operations.
In the field of vending, cashless payment methods are nothing new: there are different types and each of them has its pros and cons. In fact, it has been shown that the sales volumes of vending machines do not depend only on the products offered and the positioning of the machine, but also on the choice of the most appropriate payment method.
How many times has a user renounced a purchase because he did not have coins in front of a vending machine that only accepted those or, vice versa, felt encouraged to buy more thanks to the ease of interaction between the payment App or key and the machine?
How to choose then? The correct answer is: based on the situation and needs.
What are the most popular cashless payment methods for vending?
Keys: a simple, practical and immediate tool that favors the increase in consumption and the frequency of use of vending machines. In many respects the key still represents the ideal substitute for the use of cash. The numerous features that have been added over the years have increased its versatility: think of the special discounts, free credits, various bonuses, the happy-hour functionality.
They can be recharged, depending on the installation, with coins, banknotes or – in more advanced installations – even with a credit card, helping even more to reduce the use of cash and all the problems associated with cash management.
They are useful in closed contexts (companies, offices) or semi-closed (schools, hospitals) and with loyal customers
They are the most popular payment solution in the vending market today and have long since entered the “payment habits” of users.
They can be branded to promote the operator’s brand but offer few strategic possibilities in terms of interaction between operator and consumer to learn about their habits and preferences; it is therefore not possible to use this tool for personalized promotions.
Finally, they have the well-known disadvantage of being forgotten (at home, when changing bags or clothes).
Credit cards: convenient and widespread, they are economically more demanding for the seller because they require additional costs (banks, intermediaries).
They favor the purchase in environments where traditionally there is no cash available or at hand (gyms, swimming pools, bathing establishments, etc.). They are ideal for use in public or semi-public locations, with occasional customers and high traffic (ports, airports, stations, automatic shops, but also hospitals, universities, etc.).
They are particularly suitable for impulse purchases and have the advantage of being a tool that customers usually already own. In fact, cards enjoy a very wide penetration in the population, with 2.17 million POS installed in Italy, 90% of which accept contactless cards and often also mobile solutions such as Applepay and Googlepay.
Payment Apps: relatively recent, they have many advantages and a single limit: you must have a smartphone. After the initial phase of registering your profile, they are always available, immediate and allow easy interaction between the operator and the user for the exchange of information (promotions, reminders, storage of consumption habits, etc.) that are not possible with other payment methods. With the Apps you can stimulate the desire to buy in a personalized way.
They can be recharged with different methods, from coins to credit cards and even with other apps. The more modern versions also offer the possibility of selecting the product via the telephone keypad, without touching the keypad of the vending machine.
Perfect in private locations with recurring users, young and more sensitive to new technologies such as universities, call centers, gyms etc.
Security of payment methods
Whichever solution is best for your needs, be sure to act safely.
This is particularly true for credit card and App solutions: “hacking” an App has a very different impact than cloning some key!
Security, when it comes to electronic payment methods, must concern the custody, handling and traceability of the currency but also compliance with the rules on the management of sensitive user data (the latter shared with the operator).
As always, the “beacon” to follow in this case is the choice of a verified and reliable partner who can offer a platform with solid regulatory and technological bases, time-tested.
Contact us to study together the most suitable payment solution for your vending machine!
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