Vending machines that use cashless payment systems help serve people with greater convenience. The rapid rise in popularity of cashless POS terminals in vending machines has been driven by consumer preferences as people become increasingly accustomed to a wider variety of cashless payment options. If your business still has cash-only vending machines in operation, they can easily be upgraded with modern POS payment terminals.
In order to drive growth, it’s essential that businesses take advantage of every opportunity to improve customer service, efficiency and convenience. For many companies, this includes leveraging unattended payment terminals in their vending machines as part of their growth strategy. Of course, vending machines are nothing new to the world of retail. However, the technology associated with unattended vending payments, and the ways in which customers want to interact with these machines, have evolved significantly in recent years. Perhaps the most influential factor driving the evolution of unattended vending systems has been the shift away from physical cash in favour of credit cards, debit cards, and contactless digital payments such as Apple Pay and Google Pay.
Why Are Fewer People Carrying Cash These Days?
There are multiple reasons why cash has fallen out of favour in society as the preferred way of paying for things. For starters, it’s not very convenient to always have an appropriate amount of cash on hand as we go about our daily lives. Paying for everything in cash has the obvious disadvantage of being limited in the amount we can carry. Plus, once that amount has been spent, it requires another trip to the bank or an ATM in order to get more. There’s also the hassle of dealing with pockets or purses weighed down with coins, which is quite annoying as it builds up.
Another factor influencing the decline of cash is the speed of transactions. It simply takes more time to count out cash and make change, and customers would much rather get on their way faster. Physical cash also increases the likelihood of counting errors and discrepancies in accounting. Individually, these errors may seem small and insignificant, but they can quickly add up and equate to a substantial cost for the business. Cashless payments are far more consistent and reliable in this regard.
Aside from the physical disadvantages of cash payments, there are also technical limitations as well. For example, cash simply can’t be used to make online payments, which are continuing to replace in-store transactions at a rapid rate. Cash is also one of the least secure payment types, especially compared to credit cards, debit cards, and digital payments, all of which offer far greater protection for consumers and businesses against theft and fraud.
Furthermore, high-value purchases are certainly more difficult to complete using cash. Carrying thousands of dollars in cash in your pocket is enough to make anyone a bit nervous about the possibility of loss or theft. In addition, businesses need to be wary of accepting cash payments with bills of large denominations due to the higher risks of counterfeit currency.
What all these considerations add up to is the undeniable conclusion that cash will continue to be replaced by alternate payment methods that offer greater speed, convenience, security, and consistency.
Business Advantages of Offering Cashless Unattended Payments
Instead of relying on cash and coins for vending payments, the aforementioned problems can all be avoided by switching to an unattended payment system that is capable of accepting a wide range of cashless payments. With that said, it’s not just about avoiding disadvantages. It’s also about capitalizing on the added benefits that cashless POS terminals can provide for the business.
Greater Convenience & Efficiency – Cashless payment solutions for unattended vending machines offer far greater convenience than cash-only systems. Customers can use their preferred payment method, whether it be credit card, debit card, or digital wallet apps, and never have to worry about whether they have the necessary cash on hand. Cashless payment systems are also more efficient. Customers can complete their purchases faster, increasing the ability of your vending system to process more transactions in less time. Customer satisfaction increases, as does the total revenue generated each day.
Lower Costs & Fewer Reconciliation Errors – With a cashless unattended POS terminal, your employees spend far less time handling and moving physical cash, thereby reducing the overall operating costs for your vending systems. Plus, the likelihood for reconciliations is drastically reduced, and often eliminated entirely. Accounting occurs in real-time as digital payments are compiled with precision and accuracy, saving you money by avoiding the potential of human error.
Enhanced Functionality & Remote Access – Modern unattended payment terminals like those from MONEXgroup provide enhanced functionality that can deliver added value to your business in several ways. The terminals can be configured for remote access, allowing you to update pricing, configure settings, and obtain valuable business data from virtually anywhere, at any time. Using this data, you can effectively analyze the performance of individual vending systems and leverage this information to guide your business strategy and obtain even greater ROI.
Gaining these benefits for your business doesn’t mean you need to completely replace all of your vending machines with entirely new systems. In many cases, existing vending machines can have their payment systems easily upgraded with an advanced cashless POS terminal. There are a few key considerations to be aware of when determining whether a payment terminal retrofit is a viable option for your vending systems.