Did you know that vending machine sales in 2022 saw an 11% increase in cashless payments, making up 67% of all transactions?
Consumer behavior has been changing rapidly, and one of the most significant changes is how people make purchases. Instead of relying on cash transactions, consumers are more likely to make payments using their cards or smartphones. As a result, businesses and retailers have had to adapt to this changing landscape by offering digital payment options to remain competitive and cater to the evolving needs of their customers.
Micropayments refer to transactions involving less than $10, commonly occurring in self-service platforms. A recent report by Cantaloupe provides valuable and insightful data highlighting how the changing micropayment trends reflect consumer payment behavior in the self-service retail industry. This blog explores significant findings from Cantaloupe's Micropayment Trends Report and looks at how operators can use these insights to increase their bottom line.
Cantaloupe’s goal of the study was to show operators how their customers prefer to pay.
Cantaloupe started by partnering with graduate students from Michigan State University’s Broad College of Business to analyze a smaller data set of card readers installed on food and beverage and amusement machines in the United States and Canada. The scope of the study was expanded to include a sample set of over 700,000 card readers from January through December 2022.Average Transaction Amount
Cantaloupe’s 2022 data confirmed what they’ve known for quite a while: customers spend more when they have a cashless option. The average amount spent on cashless vending machine transactions was $2.11, which is significantly more when compared to the $1.36 spent by those paying with cash.
Consumers, on average, tend to spend 55% more when they opt for cashless payment methods.
Installing card readers with cashless payment options on vending machines is an increasingly popular and effective strategy for operators looking to enhance their bottom line. Vending machines offer customers greater convenience, security, and flexibility in their purchasing experience by leveraging the latest payment technologies like Greenlite Cashless. Not only does this boost customer satisfaction and loyalty, but it also opens up new revenue streams by tapping into the growing demand for cashless transactions. By adopting this innovative approach, vending machine operators can stay ahead of the curve and capitalize on the trend toward digital payments in today's fast-paced and tech-savvy market.Trends in payment methods
According to Cantaloupe's findings, vending machines witnessed an 11% surge in cashless payments in 2022, representing 67% of all sales. Consumers have also shown a growing interest in experimenting with different payment methods at food and beverage vending machines, with contactless payments being the most popular. This method, where customers simply "tap" their card or mobile phone, constituted over half of all cashless transactions, averaging 53.9% of all sales.
As a result, vending machine owners should prioritize having a card reader installed on their machines. This is because consumers increasingly prefer to pay by swiping or tapping their card or phone, and vending machines without card readers miss out on significant sales. The data from 2022 sales highlights the importance of keeping up with consumer preferences and upgrading vending machines with contactless payment options.
Vending machines that offer the option of swiping or tapping a card or phone have a clear advantage over those that don't, as they can cater to a larger customer base and provide a more convenient purchasing experience. Therefore, vending machine operators need to keep up with the changing consumer preferences and invest in technologies that can help them meet their customers' needs. The big takeaway? Operators who don’t provide cashless payment options are losing out on significant sales.The Influence of Inflation
According to a study conducted by Cantaloupe in 2022, despite the skyrocketing inflation rates that caused a lot of trouble for consumers, it was found that spending on food and beverage vending machines remained unaffected. In fact, the study revealed that consumers spent more than $2.5 billion at food & beverage vending machines, which is a significant increase of nearly 19% compared to the previous year. This indicates that even during tough economic times, people continue to rely on vending machines for their food and beverage needs, making them a reliable source of revenue for businesses operating in this sector.
Bottom line: Consumer Spending at Vending Machines Wasn’t Affected by the 2022 Inflation.Looking Ahead
Cantaloupe’s report indicates that vending machine sales will rise by 10-12%, which reflects the industry's growth trend. The report further predicts a 6-8% growth in cashless transactions in food and beverage vending machines, assuming that inflation remains stable. The study also forecasts a 1-2% increase in the overall percentage of cashless sales. The takeaway here is simple. People prefer convenience in shopping, and cashless payments form a significant part of that convenience.
Now more than ever, operators must stay ahead of the curve and provide customers with a seamless and secure cashless payment system. Unlock the potential for greater profitability with Greenlite Engage Cashless Device. This cutting-edge card and mobile payment acceptance solution is designed to streamline cashless transactions and provide invaluable telemetry and data management capabilities. With Greenlite Engage, you can offer your customers a faster, more convenient payment experience while gaining valuable insights into your business operations. Increase your bottom line and give your customers the best possible payment experience with Greenlite Cashless. Learn more about how to take your business to the next level with Greenlite Engage Cashless today!