The future of unattended retail may have taken a big step forward with the union of two major players in the market. Cantaloupe, a fintech specializing in self-service commerce, has been acquired by 365 Retail Markets for $848 million.
The acquisition combines Cantaloupe’s expertise in payment processing and software services with 365 Retail Markets’ self-checkout technology. The goal of the merger is to create a comprehensive platform for markets such as convenience stores and hospitality, which are seeking continued growth in the sector.
“This is one of those acquisitions that delivers a strong strategic fit in addition to accretive earnings potential,” said Don Apgar, Director of the Merchant Payments Practice at Javelin Strategy & Research. “Cantaloupe was very early to market with the tech that made card payments at vending machines both practical for consumers and affordable for merchants. There’s no doubt that 365 Retail Markets will continue to improve on the card payment tech pioneered by Cantaloupe and incorporate it into other platforms.”
Amazon Tried It First
Unattended retail is one of the fastest-growing categories in the industry, favored by consumers for its 24/7 accessibility and by retailers for the operational efficiency it provides. The concept of the unattended retail market is still evolving as retailers search for the optimal model, but it’s clear that shoppers are willing to embrace the technology.
The first major effort in this area, Amazon’s Just Walk Out, flopped when it was revealed to rely heavily on people remotely monitoring shoppers via cameras. While the approach failed technologically, it did serve as a proof of concept—demonstrating that consumers are willing to shop in a completely unattended environment.
Surprising Benefits
There are many potential use cases across products and locations where the tech will continue to iterate to meet specific needs. So far, the benefits of unattended retail have been surprising.
“Stores like Target are discovering that self-checkout doesn’t work best as a means to cut payroll, because customers get frustrated by lack of assistance,” Apgar said. “The formula now is we keep store payroll the same and redeploy staff from behind the registers and onto the floor where they can help customers. One benefit of self-checkout is not lower costs but higher sales.”
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