Consumers spent more than $3.5 billion at food and beverage vending machines in 2024, a 15% increase over 2023. While vending machines were initially thought to be poorly suited for credit cards and digital payments—due to concerns over transaction fees on small purchases—the opposite has proven true.
Indeed, cash-operated vending machines are quickly becoming a thing of the past. Cashless payments accounted for 71% of all vending machine sales last year, a 17% increase compared to 2023, according to research from Cantaloupe. The study also forecasts that sales at food and beverage vending machines will grow another 8% in 2025.
Spending More with Cashless Options
Consumers are moving beyond card usage at vending machine. Contactless mobile payments now account for more than three-quarters of all cashless sales at such machines.
“Many thought that the merchant fees from card purchases would break the vending business model,” said Don Apgar, Director of the Merchant Payments Practice at Javelin Strategy & Research. “But in fact, profitability increased, based on two key factors. For one thing, the bill acceptor is the most troublesome component on a vending machine, and substituting it for card payments greatly reduces the frequency of service visits needed, dramatically reducing operating expenses. Also, a card payment option drives inelasticity in prices, and consumers will gladly pay a higher price when they pay by card.”
Cantaloupe’s research supports that theory. Last year, the average purchase at a vending machine was $2.11, while the average cashless vending transaction was $2.24. In comparison, cash purchases at vending machines averaged just $1.78.
A New World for Vending Machines
Card purchases in vending and other unattended retail platforms have expanded beyond traditional snack and drink machines. They are now common at self-service air pumps at gas stations, car wash machines, laundromats, and propane exchange kiosks. Additionally, there has been a proliferation of self-serve kiosks in fast food restaurants.
“Going cashless at these types of locations is the logical extension of card acceptance,” said Apgar. “Consumers prefer cards over cash, so accepting card payments drives cash usage to a very low percentage of the total. They are also not price sensitive when the cost of card payments is built into the product price.”
The benefits of going cashless reach beyond simply encouraging higher spending. Cashless systems significantly streamline the customer experience.
“Eliminating cash greatly speeds throughput when there is a line,” Apgar said. “And the costs of servicing the technology decrease significantly when there is no cash involved.”
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