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Issue Date: Vol. 52, No. 12, December 2012, Posted On: 11/8/2012


USA Technologies' Two-Tier Pricing Program Hits 11,000 Location Milestone


Emily Jed
Emily@vendingtimes.net
TAGS: vending, vending payments, cashless vending, ePort, USA Technologies Inc., USAT two-tier pricing program, vending operator, Jim Turner, Lisa Leuchter, Snackworks, Robin Rawls, Rawls Distributing Co., CNC Vending, Chuck Olson

MALVERN, PA -- USA Technologies Inc. announced that more than 11,000 locations are using its two-tier pricing program, which the cashless vending provider launched in January. The program gives vending operators the ability to charge two different prices: a standard retail price for credit or debit card transactions, and a discounted price for cash purchases. Operators have the flexibility to set their own credit/debit prices, by account or machine, remotely through the customer portal of ePort Connect.

"Our two-tier pricing program has been gaining strong traction with operators of our unattended retail locations, as they recognize the benefits of cashless adoption and the valuable role two-tier pricing can play in their purchasing decision," said USAT vice-president of deployment services Jim Turner. He added that the company continues to monitor consumer reaction to two-tier pricing through its USAT Knowledge Base, which indicates strong consumer usage and acceptance.

Its most recent September analysis evaluated cashless sales and usage data from approximately 1,500 ePort terminals with two-tier pricing, compared with its initial study of 450 ePort terminals conducted in early 2012.

The analysis tracked key metrics, per terminal, for the one month before and after deployment of USAT's two-tier pricing program, to gauge the impact of the program on cashless sales and usage. Consistent with the initial results, all key metrics -- cashless sales as a percentage of total sales, aggregate cashless dollars, number of vends and average credit vend -- grew, according to USAT.

Lisa Leuchter, founder and co-owner of Snackworks (Bradenton, FL) said that consumers appear to have accepted two-tier pricing because of the convenience it offers. "Adding USAT's two-tier pricing program as one of our cashless payment options has helped us to be more flexible and competitive, and is bringing in enough additional pretax profit to pay for our card processing and one-third of our ePort Connect service fees," she said. "The program has made installing cashless payment more viable with a broader base of customers."

Robin Rawls of Rawls Distributing Co. (Savannah, GA), which has 1,200 machines in the field, said he was prompted to try USAT's two-tier pricing program when he learned about the positive findings in the latest study. "Now, we try to get two-tier pricing on all of our machines as existing contracts run out with some of our more intractable clients," he said. "Their employees want the service and are willing to pay for it."

Another company reporting success with USAT's two-tier pricing program is CNC Vending (Houston). Owner Chuck Olson said consumers are spending more at CNC machines when they can pay with their debit or credit cards instead of cash, both on multi-vends and on higher priced items.

"Every CNC vending machine that goes out now has an NFC-enabled card reader, giving our consumers more convenience, ease of use and speed of transaction, adding so much more value to their shopping experience," he said. "This was another reason for going with USAT's two-tier pricing. We can offer every payment option and open up new streams of revenue."


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