Apple Pay Driving Vending Machine Transactions in the US: Report

Does a frictionless digital checkout experience increase revenue and average spending? According to a study from USA Technologies, it does (via PaymentWeek). As it turns out, Apple Pay is quite a winner as part of the vending machine market.

Apple pay vending machine

After studying vending machines and customer behaviour in New York City and Lafayette, Louisiana, USA Technologies has found Apple Pay and the iPhone combination are proving to be big draws for users.

Vending machines offering this combination (aka Apple Pay) lead to a 26% increase in transactions on that machine. Also, revenue was up 22%, and average spend, 12%.

USA Technologies’ senior vice president of marketing Maeve McKenna Duska summarized, saying “We believe speed and convenience is often a top priority for consumers, especially when it comes to small dollar purchases.

We believe the unattended markets we serve will continue to drive Apple Pay use – and that consumer awareness campaigns at the point-of-sale are key to accelerating adoption even further.”

Duska believes the frictionless experience is what is driving further customer engagement, as it removes a key objection. And when this key objection is removed, customers are more likely to use this payment form.

Apple-Pay-enabled vending machines make purchases easier, so those looking for a great user experience and more convenience, Apple’s mobile-payments-service-enabled vendor machines are the way. The numbers seem to back this claim.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • mxmgodin

    I wish the vending machine at my work accepted Apple Pay/contactless payments. I rarely have change on me, so it would be really convenient.
    The machine have a Bluetooth tech implemented in them (PayRange), but you need to create an account, and load a virtual wallet with money. Then you end up with $3.50 sitting in your virtual wallet forever because all you wanted was that one bag of chips…

  • What a headache to create an account just to buy something in the vending machine…

    Back when AMEX launched Apple Pay, I was able to use it at my local rec centre. I can definitely see how it can be useful for people who don’t take their wallets into the gym, pool, etc.

  • mxmgodin

    It’s not the “I have to create an account” part that annoys me the most.

    A bit like how the Starbucks app work, you have to load money on your account, and then you can use it. When I looked it up a while ago, I think the lowest amount you could load to the app was $10.

    But unlike Starbucks, it’s not something I would plan on using regularly. So, I don’t really like the idea of having money sitting in a virtual account, with no way to get it back if I don’t plan on using the app again.

    And also, there’s the glitches. If I look at the app’s reviews on the App Store, it seemed to have happened to a number of people that the app “stole” their money (app processed the payment to the vending machine, but vending machine never “received” it, etc.)

    And as we’re on the subject of Apple Pay, the app (apparently) supports recharging your wallet using Apple Pay (yay! don’t have to give them my card info!)… except that that feature isn’t available in Canada… boo.