M
Vending's Mobile
obile payments are a great
opportunity for the vending
industry. By adding them to
vending machines, the operator has
a chance to enter the future of pay-
ments and reach the consumer in an
entirely new and engaging way. There
are many mobile payment options for
today's vending machines and the spe-
cifcs of each are represented in a chart
on page 24. Vending machine mobile
payment solutions are based on differ -
ent technologies and views within the
mobile payment arena, but each works
to satisfy the end user and provide the
operator with more sales.
Win over the consumer frst
The experience and perception of the
consumer is a major factor in mobile
payment solution success. "Most con-
sumers have a smartphone and they
will choose the mobile payment solu-
tion that works best for them and fts
their needs," said Patrick Richards,
CPI. This means mobile payment
options at vending machines have to
be easy to use, easy to setup and easier
than paying with cash/card. "Incen-
tives don't hurt either," Richards added.
The frst round of near feld com-
munication (NFC) wallets — such as
Google Wallet and Softcard (formerly
Isis) — had some challenges which
kept them from being adopted by the
mainstream consumer. Only some
cellular phones had NFC. If they did,
then only certain mobile wallets and
credit cards were allowed on specifc
cellular carrier plans. It wasn't uni-
versal or prevalent in retail. Payment
security was also a concern. Since that
point, NFC mobile payment options
have expanded and the original con-
sumer concerns have been addressed.
In September of 2014, Apple joined
the NFC-based mobile wallet category
with its introduction of Apple Pay.
Richards believes the release of
Apple Pay will change the mobile
payment market because NFC has
benefts over other technologies such
as Bluetooth low energy (BLE) and
cloud-based payment systems due to
the broader proximity requirements
and time-tested secure payment sys-
tem. "Consumers follow the same tra-
ditional cashless transaction process
substituting a 'tap' for the 'swipe,'"
explained Richards. NFC also doesn't
require a connection to be established
with the machine, like a BLE pair-
ing. Cloud-based payments may avoid
credit transaction fees, but Richards
doesn't believe consumers will share
their bank account number to fund
such a wallet solution.
BLE gives demographics
While NFC certainly has its advan-
tages, many in the industry believe
Mobile payment options for vending machines come
with many benefts. And while there are many different
solutions for operators to consider, all focus on the
consumer experience.
By Emily Refermat, Editor and Adrienne Zimmer, Assistant Editor
20 Automatic Merchandiser VendingMarketWatch.com December 2014
M O B I L E P A Y M E N T