Kiosk Solutions Issue 19 - Page 26

cashless vending their card readers. Even some of the biggest supermarkets only introduced contactless readers in 2016. Fast-forward to 2018 and we can pay by contactless everywhere. The UK is at the forefront of the contactless revolution, from the corner shop to the bus. Contactless is quicker for both consumers and retailers. For consumers, it’s simply convenience. For retailers, quicker payments mean queues move faster and they can serve more customers. This is also true of course for cashless vending machines. By the end of 2017, 78% of debit cards and 62% of credit cards were contactless. And, an impressive 63% of people in the UK now use contactless cards and enjoy their convenience. Mobile payments aren’t far behind As well as physical contactless cards, another way to pay that has entered the market is mobile payments. This means that all people need to leave the house with is a phone. In particular, this method has been adopted by younger consumers with Apple Pay, Samsung Pay and Android Pay allowing users easily and securely store card details on their smartphones and eliminating the need for a purse/wallet. Barclay Card recorded a massive 90% increase in app payments in 2017. Currently, mobile payments are used the least often, but forecasts suggest they will continue to grow in popularity. Spending via smartphone is accelerating. In fact, according to World Pay, a third of customers now "As well as contactless, another way to pay is mobile payments. This means that all people need to leave the house with is a phone" 26 KIOSK solutions take advantage of their smartphone’s payment capabilities. The proof is in the case study We decided to delve into Doozy’s data to see how cash vs card stacks up for our vending machines. The data is from our machines across three different sectors, healthcare, education and leisure. Trends across the UK show that card has overtaken cash as the main payment method – our overall stats reflect this. 64% of our customers across all sectors paid with a card, and a further 8% with mobile. It’s worth noting that people use a card through their mobile app to pay, taking the total card payments to 72%. The results became interesting when splitting the data into sectors. While both the education and healthcare sectors showed over half paying by card, the leisure results painted a different picture. Including both card and mobile app payments, the leisure sites took 52% card payments, only just ahead of cash. We expected to see a bigger difference. The education sector was streets ahead with most students and staff opting to pay with a card. Just 21% opted for cash. Of course, this is the sector with consumers mostly below 30 and it’s expected younger people will choose card over cash. The mobile payment percentage showed this age difference as well. Consumers at healthcare and leisure sectors are a variety of ages, from children to elderly. Each of these sectors had 4% of people use a mobile payment app, but for education, this figure jumped to 11%. Across all sectors, we see 8% of people using mobile apps currently. Yet, if current predictions are correct, this number will rise over the next decade. We split the card percentages up to see the difference between contactless and chip and pin. The figures were unexpected. The leisure sector, which had much lower card payments than