MALVERN, PA -- USA Technologies Inc. said data from its new two-tier pricing program showed greater sales activity in the two weeks after its deployment than before.
The program gives operators the ability to charge two different vend prices: the standard retail price for credit and debit transactions and a lower, discounted price for cash purchases. This helps offset the cost of card processing. As an extension of USAT's ePort Connect service, operators have the ability to adjust prices "over the air" by account or by machine.
In evaluating the impact of the pricing program on consumer behavior, USAT collected sample data from 450 existing cashless terminals that adopted the valuing differential since it was first offered early this year. USAT tracked key metrics by terminal for the two weeks before and after deployment of the program to gauge the impact two-tier pricing was having on cashless sales and usage.
For the two weeks after deployment, USAT reported, the percentage of cashless sales to total sales grew. In addition, cashless vends grew in total.
"We already know that a cashless payment offering can boost total sales and average price per transaction -- explaining those benefits wasn't our goal here," said Jim Turner, USAT's vice-president of deployment services. "Rather, we wanted to use our Knowledge Base to address the perception that cashless sales would go down under a two-tier model. This information is what many of our customers have been waiting for as they continue to evaluate when and where to deploy cashless solutions into their existing base of vending machines.
"The good news here is that cashless sales still appear to be trending up post two-tier deployment," Turner summarized.