MALVERN, PA -- A recent test found that targeted point-of-sale advertising for Apple Pay increases usage of mobile payments by consumers. According to the recent analysis by USA Technologies, the nation's largest cashless vending provider, smartphone users who are shown POS advertising on USAT's ePort Interactive platform are more likely to pull out their iPhones to make purchases, and spend more during the transaction.
USAT's initial findings show targeted digital advertising on the ePort Interactive that highlights Apple Pay availability at the point of sale resulted in the following increases: 26% in overall transactions; 22% in total revenue; 12% in total average ticket; and 89% in revenue through contactless purchases, including Apple Pay
USAT began applying NFC technology into its cashless payments systems 10 years ago, and by January 2015 it was able to provide Apple Pay users with 200,000 places to use their wallets shortly after Apple Pay launched in October 2014.
As of June 1, USAT provides consumers with the option to make payments using their mobile wallet including Apple Pay at more than 300,000 unattended devices equipped with NFC, including vending machines.
As part of the Apple Pay study, initiated in March, USAT rolled out advertising through its ePort Interactive touchscreen cashless device focusing on Apple Pay on 35 machines in specific urban locations where iPhone user populations are dense.
"Whether an ad at the point of sale serves as a simple reminder that a consumer can use Apple Pay to make a purchase, or educates and informs them of how easy, secure and private the mobile payments service is, consumers are responding positively as they buy more and spend more, more often," said USAT senior vice-president of marketing and sales Maeve McKenna Duska.
In another study, Auriemma Consulting Group found that 70% of Apple Pay users say they are more likely to choose stores that accept Apple Pay. In addition, one in five smartphone users are predicted to use mobile payments by next year, with the total value of mobile payment transactions expected to grow 210% in 2016 according to eMarketer.
"Cracking the code on consumer engagement is critical for retailers, and self-serve retailers are no exception," said Tom Murn, chief executive of Answer Group (Farmingdale, NY), whose vending machines were used in USAT's study. Murn said the test results suggest that consumers are not only open to receiving digital advertising at vending machines, but are also being influenced by the information operators can provide at points of sale.
Murn observed that as Apple Pay's footprint continues to grow and more retailers offer mobile payment options at point-of-sale, the expectation will soon be that Answer accepts Apple Pay and other mobile wallets on every machine. "By integrating digital advertising and other consumer engagement initiatives, we'll be able to move beyond the transaction and be ready and able to benefit as consumers enjoy the best user experience," he said.
As part of the test, USAT employed equipment installations that currently displayed traditional, printed Apple Pay decals and ePort G series devices, swapping the POS hardware with digital touchscreen hardware connected to its Interactive platform. The test devices were preloaded with an assortment of five different marketing messages promoting Apple Pay usage. The test was conducted in New York City and Lafayette, LA. USAT said it will be studying Apple Pay usage in other cities.