Technology spurs cashless adoption

Evidence that the self-service payment sector is growing can be found in two recent developments. USA Technologies Inc. is equipping its vending machines to accept near field communication- (NFC) based payments via the Isis mobile wallet. And VeriFone Inc. said gas station customers can now buy lottery tickets at VeriFone PayMedia-equipped pumps in Minnesota.

Vend and conquer

On Dec. 3, 2012, USAT said up to 7,500 vending machines will be equipped with NFC to accept Isis Mobile Wallet payments. The vending machines accept Isis payments through USAT's NFC-enabled ePort technology and ePort Connect service platforms. Customers tap Isis-enabled mobile devices on ePort terminals to initiate NFC payments.

The Isis-enabled vending machines will initially only be found in Salt Lake City and Austin, Texas – the only cities where Isis is currently available. Mobile operating networks AT&T Inc., T-Mobile International AG, and Verizon Communications Inc. formed JVL Ventures LLC to create and market the Isis Mobile Wallet.

Isis Chief Sales Officer Jim Stapleton said vending payment expands the list of places where consumers can use the mobile wallet.

Stephen Herbert, USAT Chairman and Chief Executive Officer, remarked, "Our work with Isis sends a clear message to vending companies in these two cities – and to the broader market we serve – that there is tremendous opportunity in cashless adoption. Through the Isis Mobile Wallet, we believe these merchants will have unparalleled new opportunity to attract consumers as well as participate in marketing programs with global brand names."

'Play' at the pump

In its Nov. 29, 2012, statement, VeriFone said its "play at the pump" implementation represents an untapped market segment for state lottery commissions.

The Minnesota State Lottery agreed to a trial of the technology at nine Minneapolis-area locations. VeriFone's lottery-enabled pumps use the Linq3 payments platform which allows lottery ticket sales at ATMs and other unattended POS devices. Consumers can buy Powerball and Mega Millions tickets using debit cards at the same time they buy gas. The first sale of a lottery ticket from a Minnesota gasoline pump occurred Nov. 13.

Ed Van Petten, Minnesota Lottery Executive Director, said play at the pump will increase the sale of lottery tickets by making purchases more convenient and help lottery retailers grow their business. "This delivery method reaches a casual player who may want the convenience of making a lottery purchase while at these locations," he noted.

Lottery consumers are age-verified and enrolled at the pump, according to VeriFone. Winnings under $600 are automatically deposited to customers' debit card-linked accounts. Consumers can check purchases online and sign up for mobile text notifications.

"Many consumers forget to play the lottery or just simply don't have the time to make an extra stop, so VeriFone's media solution makes it easy for them to play," said Jennifer Miles, VeriFone North America Executive Vice President.

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