USAT Believes Increasing Consumer Participation and Better
Returns for Operators is Driving Increased Eport Adoption
MALVERN, Pa.--(BUSINESS WIRE)--
USA Technologies, Inc. (NASDAQ: USAT), a leader of wireless, cashless
payment and M2M telemetry solutions for small-ticket, self-serve
retailing industries, today announced that based on its July 2011 survey
of over 10,000 traditional vending machines utilizing its ePort cashless
payment system, consumers, on average, spent one-third more when making
a cashless purchase than a cash purchase. In addition, cashless
purchases made up approximately 26% of all sales at these vending
machines.
These findings are based on the latest sales analysis completed for the
month of July 2011, encompassing over 9 million cash and cashless
transactions on over 10,000 traditional vending machines selling snacks,
beverages, food and coffee, fitted with a USA Technologies ePort
cashless payment system.
Combined with USA Technologies' JumpStart program, which the Company
believes offers operators the industry's lowest total cost of ownership
for cashless/telemetry solutions, the Company estimates that these
positive trends result in increased returns for USAT's customers on
machines where the ePort cashless payment system is installed.
Highlights of this study include:
-
Consumers spent 33% more, or $0.37 more per transaction, when they
used a card versus cash on a machine equipped with an ePort,
increasing the average transaction from $1.13 to $1.50
-
Cashless usage was approximately 26% of total sales on machines
equipped with an ePort—up 73% from 15% usage in a similar study
conducted just three years ago
Jim Turner, VP Deployment Planning Services, USA Technologies, said,
"The results of our recent analysis indicate that consumers are spending
more at cashless payment systems on self-service retail terminals like
vending machines. We believe that this is helping to improve sales and
returns for our customers in an industry battling rising product and
labor costs, while also struggling to increase prices due to the
limitations of a cash payment environment. Using USAT's knowledgebase,
the industry's most extensive database of cashless intelligence for this
market, our team of deployment professionals can help ensure success for
our customers who implement our ePort solutions within their business,
by leveraging real world performance data to guide them to the best
locations within their base of accounts in order to maximize their
investment."
USA Technologies believes that the increase in average spend per
transaction, increased consumer usage and positive results for ePort
customers have driven accelerating adoption of its ePort cashless
payments technology. This is evidenced by the fact that the number of
customers on the ePort Connect Service has risen from approximately
1,000 at June 30, 2010 to approximately 2,000 at June 30, 2011, or 100%,
and connections on the service have risen from approximately 82,000 to
approximately 119,000, or a 45% increase over the past year.
Maeve McKenna Duska, VP Marketing, USA Technologies, concurred, "We
believe that increasing consumer adoption of cashless payment technology
and the opportunity for better returns for vending operators may signal
that our industry has reached an inflection point. USA Technologies has
been at the forefront of this industry evolution with its easy to
implement, scalable, turn-key hardware and software solutions. And we
continue to strengthen our value proposition, from the appealing
economics of our JumpStart program to the profit-maximizing strategies
of our propriety Business Deployment Planning Program. In addition to
positively impacting our customers' business, this powerful combination
is contributing to USA Technologies own year-over-year growth in
customers and connections."
Owners and operators of vending machines and other unattended retail
terminals interested in understanding the latest data/trends outlined in
this release and/or would like more information on how USA Technologies'
ePort cashless payment system can positively impact their business are
encouraged to contact USA Technologies at 800-633-0340. Visit us online
at www.usatech.com.
Learn more about the JumpStart program at http://www.usatech.com/eport/eport_jumpstart.php
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash
transactions, associated financial/network services and energy
management. USA Technologies provides networked credit card and other
non-cash systems in the vending, commercial laundry, hospitality and
digital imaging industries. The Company has been granted 79 patents and
has strategic agreements with Verizon, Visa, Crane, Compass and others.
Visit our website at www.usatech.com.
Forward-looking Statements:
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: All statements other than statements of historical fact
included in this release, including without limitation the financial
position, anticipated connections to our network, business strategy and
the plans and objectives of the Company's management for future
operations, are forward-looking statements. When used in this release,
words such as "anticipate", "believe", "estimate", "expect", "intend",
and similar expressions, as they relate to the Company or its
management, identify forward-looking statements. Such forward-looking
statements are based on the beliefs of the Company's management, as well
as assumptions made by and information currently available to the
Company's management. Actual results could differ materially from those
contemplated by the forward-looking statements as a result of certain
factors, including but not limited to, business, financial market and
economic conditions, including but not limited to, the ability of the
Company to retain key customers from whom a significant portion of its
revenues is derived; whether the Company's customers continue to utilize
the Company's transaction processing and related services, as our
customer agreements are generally cancelable by the customer on thirty
to sixty days notice; whether the Company's customers continue to
operate or commence operating ePorts received under the JumpStart
program or otherwise at levels currently anticipated by the Company; the
ability of the Company to compete with its competitors to obtain market
share; the ability of the Company to obtain widespread commercial
acceptance of it products; and whether the Company's existing or
anticipated customers purchase ePort devices in the future at levels
currently anticipated by the Company. Readers are cautioned not to place
undue reliance on these forward-looking statements. Any forward-looking
statement made by us in this release speaks only as of the date of this
release. Unless required by law, the Company does not undertake to
release publicly any revisions to these forward-looking statements to
reflect future events or circumstances or to reflect the occurrence of
unanticipated events.
Gregory FCA
Investors:
Joe Hassett, 610-228-2110
Senior
Vice President
joeh@gregcomm.com
or
Press:
Katie
Nicolai, 610-228-2128
Account Executive
katien@gregcomm.com
Source: USA Technologies, Inc.
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