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RETROFITTING "Wireless connectivity allows the operator to be in touch quickly and effciently with what is going on at their machine level," Ihara said. Telemetry also opens the gate for mobile payment. Mobile wallets such as ISIS or Google Wallets utilize NFC contactless technology communicated through a telemeter in the vending machine to make payments. Telemetry devices use the cellular networks from providers such as AT&T;, Verizon Wireless and T-Mobile as their communication network. "Many payments experts forecast that our mobile phone will become our primary payment device and a repository for basic identifcation details" Chuck Reed director, marketing and sales operations support at MEI Inc. said. "How big will mobile payment be? Eventually, it will be the primary way we pay for things." Veronica Rosas, vice president of communication and investor relations at USA Technologies, Inc. (USAT) sees telemetry as a way for operators to streamline their business, without making a huge fnancial commitment. "Investing in a whole new machine isn't at the top of operators' lists when they have the opportunity to drive incremental returns without making such an investment," Rosas said. "Having a reliable, fexible and value-add service partner will, in our opinion, drive faster returns." A report published by Transparency Market Research entitled "Mobile Wallet Market-Global Industry Analysis, Size, Share, Growth and Forecast, 2012-2018," suggests that the mobile wallet market will reach $1.607 billion by 2018, with 30.7 percent compound annual growth rate. Meaning, if the market grew steadily each year it would equate to $267 billion in annual sales. Cashless is the future Cashless payment options are a large part of the vending industry THE mobile wallet market is projected to reach $1.607 billion by 2018 according to Transparency Market Research. and an important retroft technology. Less people carry cash today and without a cashless alternative, vending operators are missing out on potential sales. Plus, as Crane's Ceballos, points out, cashless solutions encourage spending. "When consumers pay with cash they are limited to the amount of cash they have in their pockets," Ceballos said. "A consumer is less likely to add more money for an item that costs $1.35, than they would be if they were using cashless payment methods." As Ceballos suggests, having a cashless solution allows operators to more easily increase prices without seeing a decrease in sales. Cashless also markets to a younger generation who is less likely to carry cash. Culinary Ventures Vending in Union, N.J. has just begun implementing cashless solutions on their machines. Tom DiNardo, co-owner of Culinary Ventures Vending, got involved because of the impact it has on college campuses. "Many colleges are implementing payment methods on students' identifcation cards," DiNardo said. "So it's important that we have cashless solutions on the machines at these locations." DiNardo sees the long-term impact of cashless integration. He believes that operators who neglect cashless payment options will suffer going forward. "The reality is people just don't have cash anymore and the vending industry will just have to adapt," DiNardo said. "You can either get on board or you drown in the wave. That's what makes us front-runners in the industry is we've committed to adapting." May 2013 MEI's Reed reports that the most popular locations for cashless solutions are college campuses, large call centers, public sites and hospitals because of the likelihood of inadequate cash due to the unplanned nature of purchases. Having multiple payment options like cashless bezels that also accept cash increase the likelihood that the consumer will be able to make a purchase with whatever payment method they choose. Rosas of USAT anticipates a demand in contactless payment in the future. "Loyalty, couponing and prepaid programs are likely to be the next big thing and are a focus of USAT and partners such as Verizon and Isis," she said. According to Ihara from VendScreen, the industry statistics have shown a 20 to 25 percent lift in sales due to cashless payment solutions. Nutritional data is important One of the complaints about traditional vending machines is the disconnect between product and consumer. People like to see what they're buying. With telemetry and touchscreen technology, it is easier than ever for consumers to connect with products. When vending operators adopt a touchscreen for their machines there are a lot of benefts. It is a bright and interactive display designed to grab the attention of consumers. Additionally, once consumers have engaged the screen, they have access to a product database flled with descriptive nutritional facts and high-defnition photos. Ihara believes this will help lure customers who have otherwise given up on the industry. VendingMarketWatch.com Automatic Merchandiser 15