Have you ever wondered when cash will become obsolete? The use of coins and bills is declining as the convenience of tap card readers, and some mobile payments continue to gain traction. Do you remember when your friend owed you some money from a night out? Now they don’t need to go to the bank machine and withdraw cash anymore. They can simply transfer money to you from their smartphone! Electronic payments and services are on the rise faster than ever, online shopping is one example.
In Canada, over 90% of payments are now made using a form of cashless payment. We are one of the leaders in electronic payments, along with Scandinavia. While many millennials embrace the technological benefits of a cashless world, their elders are struggling with it. Their sense of security with cash and the old phrase “cash is king” is hard to change. The reality is cash is not so secure. Theft, crime, and underground economies thrive on cash and this limits a nation’s ability to grow and flourish. In fact, some credit cards offer points and rewards! By using one of these cards responsibly on everyday purchases of gas and groceries you can earn hundreds of dollars back each year just for spending on the things you need. Using cash will never have that benefit.
Vending machines are behind the times in adopting this cashless technology in relation to other industries. Vending service providers have a difficult time seeing the benefits or justifying the cost of installing these systems. While vending margins are good the average transaction price is small, and card companies charge dearly per transaction! This results in a marginally higher vend price which the consumer sees as a value add. The customer understands and appreciates the convenience of having a vending machine in their facility where they can just tap and go. They don’t need to ask a co-worker to borrow a change or need to leave the facility to get a snack or refreshment.
5 Benefits Of Having A Cashless Vending Service Provider:
Convenience
No more looking for coins deep in your wallet or car seats! No more asking a friend for some change or bills (they probably don’t have any either). Today the majority of people are paid through direct deposit. This means fewer trips to the bank or ATM, and time and money savings by not driving your car at lunch break. And don’t forget about those points you can earn using your rewards Visa or MasterCard.
Security
Why carry cash when it can easily be stolen or lost? We have all looked through our pockets wondering where that bill we had disappeared to. Cashless payments offer security and peace of mind. No more carrying a pocket full of change or those bills that fly away. Visa, MasterCard, and Interac all offer zero liability in the event of fraudulent uses.
Variety
If you have often wondered why that vending machine does not offer some type of healthier item such as a protein bar, or bag of roasted almonds, it is simple. People are reluctant to insert a large amount of hard currency into a vending machine for an item. With cashless acceptance, vending machines can now offer a wider variety of higher-value items that people demand these days.
Satisfaction
Hard currency can cause many issues with equipment. Every vending machine has a coin acceptance unit and a bill acceptance unit. Each of these units has many moving parts, and with moving parts, that means more maintenance and problems. Using a card reader means no more wondering if their coins will get jammed or the bill will get stuck. Now customers can just tap and go!
Inventory Control
Although this may be an invisible benefit, the customer will appreciate it. When a cashless system is installed into a vending machine, it runs side by side the vending management system. The vending service provider will now be able to see how many of each specific item has sold before they even get to the machine. The system uploads the data twice daily to a cloud and the vending operator can see on a tablet exactly which items you consume more of, and which items may not be selling. This means the ability to give you more of what you are looking for and changing items that are not selling.