All change on pay
Product Review
Payment methods are changing as card payments, in particular contactless, are becoming more and more important. Andrew Banks of Verifone offers his thoughts.
The world of payments is constantly changing, opening up new horizons and new revenue streams for vending operators. As we start a new decade, payments is one of the UK’s most exciting arenas for new business entrepreneurs.
Today’s consumers are increasingly receptive to services or features they perceive as convenient, instant, low cost and “useful to me”, a clear indicator that the public will be ready to accept contactless as a method of payment.
Several large retailers are currently undergoing contactless card trials in the UK, paving the way for development and growth in contactless payment. VISA believes that this year will be the “tipping point” for contactless payment and predicts the number of contactless cards in use will rise from 5 million to 15 million in 2010.
A further boost to contactless payment will come soon when the upper limit for contactless payments rises from the current £10 to £15. And with pressure mounting from influential retailing and transportation groups, we may even see it rise again in the future.
So what is the opportunity for the vending industry?
A a quicker, simpler and instant payment method opens up a whole new world of applications and vertical market sectors for vending to exploit.
We already see exciting vending applications in retail outlets, at airports, train stations, bus stations and other public places. And, it’s no longer just drinks, sandwiches and confectionary being offered. Books, DVD’s, CD’s, guide books, maps and toys are just some of the more obvious goods.
Add the availability of a broadband connection through either a cable or GPRS link (wireless) and it’s easy to predict a very different scenario. Users can tap into music, film and game downloads and mobile phone top-up services, which could all be delivered via vending and kiosks to hotels, pubs, clubs, as well as more traditional travel and transportation outlets and all could be paid for by contactless technology.
And multimedia advertising using a screen in a vending machine offer operators a way to offset costs.
Finally, don’t forget the shift in consumer attitude towards “pay now” (prepaid cards) compared to pay later (credit/debit cards).
A recent Mercator Advisory Group study predicts that general purpose prepaid cards will hit $528 billion revenue in 2012.
This article originally appeared in Cost Sector Catering magazine www.costsectorcatering.co.uk
