OMB APPROVAL
                                                 OMB NUMBER  3235-0287
                                                 EXPIRES:  JANUARY 31, 2005
                                                 ESTIMATED AVERAGE BURDEN
                                                 HOURS PER RESPONSE  0.5

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                     FORM 4

                  STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

    Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
       Section 17(a) of the Public Utility Holding Company Act of 1935 or
               Section 30(f) of the Investment Company Act of 1940

[_]  Check box if no longer  subject to Section 16. Form 4 or Form 5 obligations
     may continue. See Instruction 1(b).

________________________________________________________________________________
1.   Name and Address of Reporting Person*

Lawlor                                 Michael                K.
- --------------------------------------------------------------------------------
   (Last)                           (First)             (Middle)
131 Lisa Drive
- --------------------------------------------------------------------------------
                                    (Street)
Paoli                                  PA                  19301
- --------------------------------------------------------------------------------
   (City)                           (State)              (Zip)



_______________________________________________________________________________
2. Issuer Name and Ticker or Trading Symbol

USA Technologies      USTT
________________________________________________________________________________
3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)

________________________________________________________________________________
4. Statement for Month/Day/Year

December, 2002
________________________________________________________________________________
5. If Amendment, Date of Original (Month/Day/Year)


________________________________________________________________________________
6. Relationship of Reporting Person to Issuer
   (Check all applicable)

   [X]  Director                             [ ]  10% Owner
   [ ]  Officer (give title below)           [_]  Other (specify below)

Senior Vice President Business Development

________________________________________________________________________________
7. Individual or Joint/Group Filing (Check applicable line)

   [X]  Form filed by one Reporting Person
   [_]  Form filed by more than one Reporting Person
________________________________________________________________________________



================================================================================
           Table I -- Non-Derivative Securities Acquired, Disposed of,
                             or Beneficially Owned
================================================================================
5. 6. 4. Amount of Owner- Securities Acquired (A) or Securities ship 2A. 3. Disposed of (D) Befeficially Form: 7. 2. Deemed Transaction (Instr. 3, 4 and 5) Owned Follow- Direct Nature of Trans- Executin Code ------------------------------- ing Reported (D) or Indirect 1. action Date, (Instr. 8) (A) Transaction(s) Indirect Beneficial Title of Security Date if any ------------ Amount or Price (Instr. 3 (I) Ownership (Instr. 3) (mm/dd/yy) (mm/dd/yy) Code V (D) and 4) (Instr.4)(Instr. 4) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- ===================================================================================================================================
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. * If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v). (Print or Type Response) (Over) FORM 4 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================
9. 10. Number Owner- of ship Deriv- Form 2. ative of Conver- 5. 7. Secur- Deriv- 11. sion Number of Title and Amount ities ative Nature or 3A. Derivative 6. of Underlying 8. Bene- Secur- of Exer- Deemed 4. Securities Date Securities Price ficially ity: In- cise 3. Exe- Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of Owned Direct direct Price Trans- cution action or Disposed Expiration Date ---------------- Deriv- Following (D) or Bene- 1. of action Date, Code of(D) (Month/Day/Year) Amount ative Reported In- ficial Title of Deriv- Date if any (Instr. (Instr. 3, ---------------- or Secur- Trans- direct Owner- Derivative ative (Month/ Month/ 8) 4 and 5) Date Expira- Number ity action (I) ship Security Secur- Day/ Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr.(Instr. (Instr. 3) ity Year) Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4) - ----------------------------------------------------------------------------------------------------------------------------------- Options 1.50 12/31/02 J(1) D 10/07/97 10/07/02 Comm Stk 1,250 0 D Options 1.50 12/31/02 J(1) D 01/07/98 01/07/03 Comm Stk 1,250 0 D Options 1.50 12/31/02 J(1) D 04/07/98 04/07/03 Comm Stk 1,250 0 D Options 1.50 12/31/02 J(1) D 07/07/98 07/07/03 Comm Stk 1,250 0 D Options .50 12/31/02 J(1) D 10/07/96 07/07/03 Comm Stk 1,250 0 D Options .50 12/31/02 J(1) D 01/07/97 07/07/03 Comm Stk 1,250 0 D Options . 50 12/31/02 J(1) D 04/07/97 07/07/03 Comm Stk 1,250 0 D Options .50 12/31/02 J(1) D 07/07/97 07/07/03 Comm Stk 1,250 0 D Options 2.00 12/31/02 J(1) D 06/17/99 06/17/04 Comm Stk 6,667 0 D Options 2.00 12/31/02 J(1) D 06/17/00 06/17/05 Comm Stk 6,667 0 D Options 2.00 12/31/02 J(1) D 06/17/01 06/17/06 Comm Stk 6,666 0 D Options 2.00 12/31/02 J(1) D 08/05/99 08/05/04 Comm Stk 20,000 0 D Options 1.00 12/31/02 J(1) D 08/26/01 08/26/06 Comm Stk 16,667 0 D Options 1.00 12/31/02 J(1) D 05/26/02 05/26/07 Comm Stk 16,667 0 D ===================================================================================================================================
Explanation of Responses: /s/ Michael Lawlor January 20, 2003 - ---------------------------------------------- ---------------------- **Signature of Reporting Person Date ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.