Connectivity: Lewis Zimbler, Operations Director UK at Cashless Payment specialist Nayax, discusses how connectivity and the IoT are impacting upon society in general and vending in particular, whilst providing a sneak preview of imminent changes in cashless payment.
We’ve been talking about cashless solutions now, specifically for the vending world, for just about 10 years and at first the reaction was derisory: ‘yeah, yeah yeah; paying by credit card for a 50p can of coke?!’
These days, we’re seeing huge demand for connected, IoT products in all sectors around us. You can just look outside your office window – think chargers for electric cars, that’s being entirely driven by IoT – but even closer to home, you can just look at your phone. How many of us use our mobiles to keep track of our children? That’s the IoT at work.
The processing of cashless payments requires connectivity.
Obviously, the processing of cashless payments requires connectivity backwards and forwards between our machines, our servers and the banking world. These days, the keenest interest in connectivity is from those who are looking to achieve consumer engagement – say by using social media to link to the vending machines, or using mobile phone apps – and using consumer input to get interaction between the machine and the operator. Operators are no longer just putting an un-branded metal box in the middle of a shopping centre or an office block. Increasingly it’s all about branding, increasing the awareness of their company’s presence wherever they may go.
Use connectivity to ask the consumer for feedback
So why not use connectivity to ask the consumer for feedback at the end of the purchasing process? A, consumers enjoy being asked; B, it has tremendous benefits to the operator and ultimately; it increases the trust between the consumer and the machine. This is important because historically, vending machines have carried something of a stigma: People wonder: ‘if I put my money in this machine, is the spiral going to go round? Or, ‘if something costs 80p and I put £1 into the machine, will I actually get my 20p change?’
And when you add that historical poor PR to the fact that consumers are surrounded by numerous other places that will sell them drinks and snacks… Competition is huge these days and vending operators need to take every opportunity to engage with their customers.
There are pragmatic benefits in connectivity
There are pragmatic benefits in connectivity. Properly used, connectivity can decrease the number of visits made to a machine by a filler or merchandiser. And now, we’ve gone a step further: that same connectivity can now be used to generate pick lists in the warehouse. Mobile phone applications can even deliver instant refunds when something goes wrong, all thanks to connectivity.
From a marketing point of view, operators can start to build up loyalty programmes that utilise social media. Operators can get to know their consumers and that’s a good thing, because don’t all consumers like the idea of feeling a bit special?
The payment industry itself is just about to embark upon one of the biggest shake-ups it’s had in many years. We’ve gone from chip and pin to touch and go, (remember when people in the industry said ‘it’ll never catch on’?) But now, we’re going away from contactless and talking about NFC payments, the likes of Android Pay and Apple Pay, Samsung Pay, whatever the next mobile phone payment scenario is. And now of course, there’s PSD2.
‘QR Payments are huge in Asia now. WeChat Pay and AliPay are now so prevalent that it’s almost impossible to pay by credit card.’
The Second Payment Services Directive, (PSD2), requires banks to open their payments infrastructure and customer data assets to third parties, which can then develop payments and information services to the customer.
QR Payments are huge in Asia now. WeChat Pay and AliPay are now so prevalent that it’s almost impossible to pay by credit card. It’s all done through the phone by these Asian equivalents of What’s App or Amazon or Facebook. Take it from me: there are three or four key brands that we all know, which until now have never been associated with making payments, that realistically, in the next 2-3 years – or even sooner to be honest with you – will be the UK consumer’s payment methods of choice. These companies have already secured the payment licenses they need to get cracking.
It all links back to connectivity
So, in the near future, for example, you’ll be on What’s App, talking to friends and you’ll need to pay for something. So, you’ll open the QR scanner on your phone and make the payment. This all links back to connectivity – it’s not just between machines and servers, it’s the operator, the consumer, the banking world, social media – it’s 3600 really.
It’s a really interesting time and we’re glad to be a part of it. One thing’s for sure, though: if you’re in the vending business, you really have to be part of it.
