Vending machines are something that we are used to seeing in almost every public space, but they were often underused as many passers-by simply did not have the loose change that they needed to hand.
However, the advent of contactless payments in Nottingham and around the UK has now transformed the way we use these machines, and they are becoming busier than ever before. To explain further, Cema Vending, specialist vending suppliers in Nottingham share their view on how payment is changing across the area.
The rise of contactless payments
Cashless transactions were increasing before COVID-19 hit us across Nottingham and the UK, but the pandemic accelerated this far beyond what we had imagined. Almost every form of payment aimed to be contactless, and so many retailers adopted it for the first time. It also became necessary to add it to other forms of technology, such as vending machines. That meant that we no longer needed to count out our pennies, and instead we could pay by swiping and tapping.
These days, cashless transactions can take many forms, from contactless credit and debit cards to payments on phones and watches. Some machines even offer a QR code that can then open a dedicated payment app.
Furthermore, in Nottingham the rise of contactless has grown much further than just vending machines. In recent years, local tram and bus services have introduced new contactless payment methods to stay up to date with the surge of contactless payments. Outside of London, Nottingham was first to receive this full oyster-like contactless system on public transport.
This new style of payment ensures that public transport is available for all and has also helped improve service times due to quicker boarding and prepaid tickets which can be purchased at the station and online via card and contactless payments.
Benefits of cashless transactions for vending machines
As cashless transactions have become more commonplace, we expect to find the facility everywhere we go, meaning that many people rarely even carry cash. This means that the machines can be used by almost anyone who walks past them, ensuring that they are accessible to the largest number of users – something that will only serve to make them more profitable.
Cashless transactions rose in popularity because of their ability to keep people safe and reduce the ability to spread germs, viruses and infections. Whilst we may not be in the throes of a pandemic anymore, this is still a factor worth considering.
It also means that vending machines have become more secure. As they do not contain cash, they are less of a target for thieves. The biggest advantage of cashless vending machines is convenience. Anyone can get whatever they need in just a matter of seconds with the swipe of a card or phone, something invaluable in today’s busy world.
Why go cashless?
In terms of business, accepting contactless payments means you are accessible for all customers. Card machines are readily available and also only charge small fees for their services, however this does depend on the provider.
Furthermore, with the recent rise of Google Pay and Apple Pay, many customers pay with their mobile devices and don’t even carry cash or their physical bank card. Contactless card machines also accept Google Pay and Apple Pay to help prevent any payment issues.
Accepting contactless payments can also help you enhance the checkout process for customers, no more counting cash at the till, just a simple tap and the transaction is complete.
However, it is recommended to still accept cash, so you are accessible to all demographics. With current trends, younger people are reliant on card and contactless payments however older generations are still heavily reliant on cash transactions and excluding cash from your business could potentially prevent these customers from selecting your business.
The future of cashless vending machine transactions
Cashless transactions are now a huge feature of everyday life, which means that they are probably here to stay. As they continue to grow in popularity and increase the convenience of what is on offer, they will be in even greater demand than they are already, which will only lead to them being added to more and more vending machines.
The ease with which we can pay, and the fact that we are not limited by the amount of change in our pockets, means that we are more inclined to spend more in each transaction. For example, in 2022, the average vending machine transaction went up from $1.36 when paying in cash to $2.11 in cashless transactions. This shows that cashless vending machines will be even more popular with retailers and public spaces if they believe that they can increase each purchase amount by this 55% trend.
Vending machines were once grey boxes that offered fizzy drinks and crisps, but they are now much more versatile. Not only can they dispense healthy food like fruit and salads, but they can also offer books, souvenirs, luxury goods, toiletries and much, much more. As the items that they contain require higher price tags than the average chocolate bar, it stands to reason that cashless transactions will become even more necessary.
In 2022, as many as 67% of vending machine transactions were cashless, and this figure looks likely to grow. The convenience and security that they offer means that they are equally as popular with businesses as they are with consumers.
As local Nottingham vending machine suppliers, we ensure that we offer contactless vending machines and contactless payment solutions to all of our clients to help their business meet the demands of the consumer.
How have contactless payments grown in Nottingham?
In Nottingham, cashless transactions have grown yearly and are now the main source of payment for both goods and services.
As recently reported, 93.5% of local businesses accept card payments and this has grown by 30.7% between 2022 and 2023, this single handily shows the rise of contactless payments and suggests that digital payments is the favourable payment methods for the Nottingham area.