e-Port Surveys Show Growing Consumer Trend to Cashless

MALVERN, Pa., Nov. 17 /PRNewswire-FirstCall/ — USA Technologies (OTC Bulletin Board: USTT) has obtained the results of surveys that show a rapidly growing preference by consumers to use its e-Port® cashless transaction device when making purchases.

The surveys also showed that when consumers had the option of using credit or debit cards, they made more than one purchase, generating more sales and greater revenue for vending operators.

One survey of six vending machines at one location showed that when cashless was introduced in March, cashless sales were 12 percent. Over the next six months, cashless sales continued to grow steadily, and by October, had risen to 32.3 percent of sales. In total, the six machines generated $17,995 in credit card use between March and October, representing nearly $3,000 credit card use, per machine.

“Based on the actual sales data, USA Technologies is presenting to the vending industry solid proof of the impact of credit/debit card transactions, and the competitive advantage and increased revenue opportunity that comes with it,” said Jim Turner, VP and Channel Manager Intelligent Vending®. “This is further evidence that every vending machine operator should offer their customers the ability to use both cash, credit and debit payment options.”

Another survey conducted between June and October on 100 glass-front- beverage vending machines showed cashless sales averaged $474 per machine per month, or $5,692 per year. USA Technologies’ survey findings support a strategic white paper commissioned by the National Automatic Merchandising Association (NAMA), the vending industry’s national body. The report, released during the recent NAMA trade show, found that most consumers using vending machines favored cashless transactions.

“We are pleased to see the positive results that these innovative vending operators are experiencing. We encourage the industry to follow the lead of those who have embraced this technology and cashless vending as a way to grow their business,” commented Richard M. Geerdes, President and Chief Executive Officer for NAMA.

The results of the surveys also showed that many of the consumers using the cashless option purchased two, three or more items from the vending machine. Parents with large families, for example, might use their credit card to purchase three or four sodas, avoiding the need to carry large amounts of change, or seek change. With most beverages in vending machines now priced at $1 or more and with consumers purchasing two or three items, credit cards are rapidly growing in popularity.

The third USA Technologies survey shows that for a hotel property, that was experiencing high vandalism, e-Port was installed to eliminate cash entirely. The average ticket item for cashless transactions in a vending machine is up from $1.32 to $3.39, with 75 percent of all cashless transactions being multi vends.

“The increase in credit card use, the decrease in wireless cost and the new lower cost of the e-Port hardware are contributing to the growth in credit card vending,” said Mr. Turner. “Just a few years ago it cost nearly two times the cost of the new Generation 5 e-Port, launched at the NAMA convention. We’ve developed a product that we expect to be affordable to every vending machine manufacturer and operator.”

About USA Technologies
USA Technologies is a leader in the networking of distributed assets, 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. USA Technologies is an IBM Business Partner. The Company has marketing agreements with AT&T, Honeywell, MEI, Unilever and the ZiLOG Corporation. www.usatech.com.

Statement under the Private Securities Litigation Reform Act: With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to the ability of the Company to increase revenues in the future due to the developing and unpredictable markets for its products, the ability to achieve a positive cash flow, the ability to obtain orders for or install its products including the G-5 e-Port, the ability to obtain new customers and the ability to commercialize its products, which could cause actual results or revenues to differ materially from those contemplated by these statements.