Michigan State University Study, in Partnership with USA Technologies, Finds Revenue Increases of 110% After Cashless Payments Technology is Added to Low-Performing Vending Machines

Low Performing Machines Studied Increased Cashless Sales by 131% and
Cash Sales by 97% after 18 Months of Connectivity to USAT’s Cashless
Payments Platform

LAS VEGAS–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24USAT&src=ctag” target=”_blank”gt;$USATlt;/agt; lt;a href=”https://twitter.com/hashtag/Apple?src=hash” target=”_blank”gt;#Applelt;/agt;–The NAMA Show – While many vending operators prioritize equipping
high-volume machines with cashless technology, a recent study found that
low performing machines can offer significant revenue growth as well.
According to a recent study that was conducted by Michigan State
University (MSU) in collaboration with USA
Technologies
(“USAT”), a premier
digital payment, consumer engagement and logistics service provider for
the self-service retail market, vending operators who added cashless
technology to machines with less than $2,000 a year in sales experienced
top line sales growth of 110 percent on average over the first 18 months
following deployment; this compares to the average 35 percent increase
on the total population of machines.

The study found that, following deployment of cashless technology,
machines experienced an increase in cash sales as well. While cashless
sales increased by 131 percent on low performing machines after 18
months compared to 78 percent on the total population of machines
studied, cash sales increased by an average of 97 percent on the low
performing machines during that same period, compared to 17 percent on
the total population of machines.

Results of the full report will be presented by Jim Turner, data analyst
at USA Technologies, during the NAMA Show on Thursday, April 25, 2019 at
11:00 AM on the Show Floor, NAMA Learning Lab.

“We believe that the results of this study underscore the real financial
and operational value of adding cashless technology to every machine,”
said Jim Turner, a senior data analyst at USA Technologies. “Not only
could cashless technology facilitate more sales because it enables
people to pay with whatever method is most convenient for them, but it
could significantly increase cash sales as well, which is partially
driven by the ability to offer premium products and an increased
awareness of machine performance due to online management tools. We
believe that having the data to make better decisions, even on a
low-performing machine, can potentially result in significant additional
revenue for operators.”

The study also found that on average, over the first 18 months following
deployment, for machines equipped with cashless technology:

  • There was a 26 percent growth in total transactions
  • There was a 74 increase in credit card transactions and 13 percent
    increase in cash transactions
  • 70 percent of all growth was accounted for by increased transactions
  • Spend per transaction was up seven percent overall

The study was conducted by Michigan State University’s Broad College of
Business – MS Business Analytics (MBSA) program, which provides an
educational experience that combines a number of University resources in
addressing the study, research, and application of analytics. As part of
the program, USAT provided MSU with access to its “Knowledge Base”
database which captures sales and transaction data on all machines
connected to USAT’s cashless payments platform. MSU then analyzed the
data on select machines to evaluate sales activity up to 18 months
following the addition of cashless technology. Results were based on
sales activity of 250,000 vending machines connected to USAT’s cashless
payments platform nationwide, including 95,000 low performing machines.

“MSU’s MSBA program conducts eight to eleven studies per term with
industry partners as capstone projects. We are happy to have partnered
with USA Technologies on this study of consumer behavior around cashless
technologies on vending machines, the largest study of its kind,” said
Gayle D. Cohen, M.Ed., Assistant Director of Graduate Programs at
Michigan State University. “Projects like the one with USA Technologies
provide a great opportunity that allows MSU students to get valuable
first-hand experience in computational business analytics, machine
learning, and big data analysis.”

About USA Technologies

USA Technologies, Inc. is a premier payment technology service provider
of integrated cashless and mobile transactions in the self-service
retail market. The company also provides a broad line of cashless
acceptance technologies including its NFC-ready ePort® G-series, ePort
Mobile® for customers on the go, ePort® Interactive, and QuickConnect,
an API Web service for developers. Through its acquisition of Cantaloupe
Systems, Inc. (“Cantaloupe”), the company also offers logistics, dynamic
route scheduling, automated pre-kitting, responsive merchandising,
inventory management, warehouse and accounting management solutions.
Cantaloupe is a premier provider of cloud and mobile solutions for
vending, micro markets, and office coffee services.

Useful Links:

USA Technologies: https://usatech.com/

Twitter: https://twitter.com/usa_tech

YouTube: https://www.youtube.com/user/USATechnologies

Resource Center: https://usatech.com/resource-center/the-benefits

Sales and Partnership Inquiries:

Please contact USA Technologies, Inc. at +1 800.633.0340 or [email protected].

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 are forward-looking statements. When used in
this release, words such as “anticipate”, “believe”, “estimate”,
“expect”, “intend”, and similar expressions, as they relate to USAT or
its management, identify forward-looking statements. Such
forward-looking statements are based on the beliefs of USAT’s
management, as well as assumptions made by and information currently
available to USAT’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; the ability of USAT and/or MSU to
predict future market conditions and consumer behavior; whether
consumers will continue to increase their purchases at vending machines
in the future; the extent to which deployment strategies affect return
on cashless investment; and the possibility that all of the expected
benefits and efficiencies from cashless payment services, including
increases in cashless and cash revenue on vending machines in general,
and low performing vending machines in particular, will not be realized
by all vending operators and on all vending machines or within the
expected time period. 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, USAT 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.

–G-USAT

Contacts

Media:
Emily Porro
347-346-3663
[email protected]

or

Investors:
Blueshirt
Group
Monica Gould, +1 212-871-3927
[email protected]

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