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Issue Date: Vol. 55, No. 11, November 2015, Posted On: 10/15/2015

Two Canteen Franchises Target 100% Cashless With Help From USA Technologies

Emily Jed
TAGS: vending machine payments, cashless vending, USA Technologies Inc., Canteen Vending, Wilmore Snack Sales, Canteen of Coastal California, USAT ePort Connect Service, Jimmy Wilmore, Jerry Scott

MALVERN, PA -- USA Technologies Inc. has signed deals with Wilmore Snack Sales and Canteen of Coastal California that mark the latest in a growing number of companies connecting all of their machines to USAT's ePort Connect Service.

USAT has inked a five-year agreement for its ePort Connect suite of cashless payment service with Wilmore Snack Sales Inc., a Canteen franchise located near Shreveport, LA. It provides for the purchase of 2,000 ePort devices, which are expected to be deployed during Wilmore's current fiscal year, and includes hardware, co-marketing and installation assistance.

"We've always believed that adding credit and debit card capabilities to our vending machines would increase sales and margins, and we knew we had to ramp deployment faster in order to capture the upside on every machine," said operator Jimmy Wilmore. "Many consumers don't carry cash, and there is only so much you can do to improve margins by improving efficiencies. The real upside is in capturing new business."

Malvern, PA-based USAT's multiyear agreement for its ePort service with Canteen of Coastal California adds 2,800 connections, along with hardware and support. "We were experiencing a well-defined shift in customer behavior, away from paying with cash, to using credit and debit cards or mobile payments to make everyday purchases. It was obvious to us that we either needed to make a change or be forced to lose customers," said vice-president and general manager of Canteen of Coastal California Jerry Scott.

USAT is working with Canteen of Coastal California to deploy ePorts, and Canteen Coastal has connected over 1,600 of the total 2,800 units previously shipped. Initial results show 34% cashless usage on machines connected to the ePort Connect Service and that the average ticket from cashless sales of $1.74 is 43% higher than the average ticket from cash sales of $1.21.

USAT's Canteen franchise customers include M&M Sales Co. (Lafayette, LA), Pepi Cos. (Bainbridge, GA), Southern Refreshments (Tucker, GA) and Five Star Food Services (Chattanooga, TN).

USAT recently announced the addition of 31,000 net new connections to its ePort service and 675 new customers in the fourth quarter of fiscal 2015. The company had 333,000 machines connected to the ePort Connect Service as of June 30, 2015, an increase of 25% from June 30, 2014.

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