Scrabbling around for change is old fashioned

7 July 2017, Smart Machines

It is predicted that three quarters of payments will be cash and note free by 2025[1]. Cash is no longer king, with our latest research indicating that more than half of people believe scrabbling around for change is outdated in 2017.[2]

The extensive research, which was taken from a proportionally representative panel of 2,000 consumers, also found that almost two thirds (63%) of people would be willing to switch to contactless payment in vending if it was available. The top reason consumers gave for switching was that they wouldn’t have to find any change.

The switch in thinking is indicative of a wider consumer trend of digital and virtual ownership. We no longer own movies, we have Netflix; we don’t listen to CD’s, we have an iTunes account; the natural extension of this consumer behaviour is that we no longer use cash, but accept contactless payment instead.

Vending businesses that have made the switch are already reaping the rewards of a higher price point and increased transactions. When a contactless payment solution has been added to a vending unit, data from our estate reveals that the average value of a transaction rises by 7% to 94p. The insight also highlighted that the number of contactless transactions in vending machines increased by 61% between August 2016 and February 2017.

The vending industry is heavily entwined with cash as a method of payment, but we’re increasingly seeing savvy operators approach us for a payment solution that future proofs their business. Don’t get left in the cold.

[1] A Cashless Future. (2017, 01 24). Retrieved from Trend Monitor: https://trend-monitor.co.uk/a-cashless-future/

[2] Vianet. (2017, 01 25). Consumer research into vending on a proportional representative panel of 2000 UK consumer. Ginger Research.

 
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