By 2025 it is predicted that three quarters of all transactions will be made contactless, without notes and coins. This might seem shocking to some operators, but the facts and wider cultural consumer trends show we’re on track.
Statistics from the UK Card Association revealed that overall contactless spending rose to a staggering £25 billion in 2016 – up from £7.7 billion in 2015. What’s more, the number of contactless cards in the UK rose by 25% over the last year alone, currently sitting at 104.4m. History tells us these numbers will continue to rise, the question is how fast.
While contactless payment builds momentum with consumers, change and notes have lost popularity. Vianet’s latest research revealed that more than half of consumers believed scrabbling around for change seemed outdated in 2017. A further two thirds of people said they would be willing to switch to contactless payment in vending if it was available. The main reason they gave for switching was because they wouldn’t need to find or use any change. As with online shopping and social media, operators who recognise this trend early will have the advantage.
Switching to contactless will not only future proof your business, but statistics from our estate show it will improve your price point. Between August 2016 and February 2017 the average value of a contactless transaction increased by 7% to 94p. During the same time period the average number of contactless transactions in our estate also increased by 61%. It’s clear people are increasingly likely to buy goods from vending machines with contactless payment and when they do they’re willing to pay more – switching is a no brainer.
Smart machines and smart technology are the future of all industries, not just vending. If you’re interested in installing a device, or simply want to discuss any of the points raised above, please feel free to get in touch with us at Vianet and see how we can help make your machines smart.