Apple Pay digital ads fuel 26pc uptick in vending machine transactions

Smartphone shoppers that are shown digital ads promoting Apple Pay compatibility at point-of-sale locations are more likely to complete a transaction using their mobile devices and will potentially spend more money, according to a study conducted by USA Technologies.

USA Technologies, which allows consumers to make contactless payments at more than 300,000 NFC-enabled machines across the nation, introduced digital advertising through its touchscreen cashless devices and ePort Interactive platform to inform shoppers of the ability to complete transactions via Apple Pay. The study, rolled out in March, included advertising on 35 machines in urban areas with high numbers of iPhone users, and resulted in a 26 percent jump in overall transactions.

?[The biggest takeaway is] that engaging with the consumer at the point-of-sale (by encouraging them to use their mobile wallet) can have a profound impact on both adoption and usage,? said Maeve McKenna Duska, senior vice president of sales and marketing at USA Technologies. ?We are all creatures of habit. When an organization is working to change a consumer habit, the most powerful way to do it is to provide a reminder of an alternative just before the desired action can take place ? and then make it really easy to make that transition.

?Apple Pay made it quick and easy, the phone provides a prompt whenever an NFC capable device in within range so, when the consumer sees an ad, by the time they glance down at their phone, their Apple Pay prompt is displayed,? she said. ?All they have to do is finger-print authenticate and the transaction is complete.

?This kind of frictionless point-of-sale reminder at the retail locations consumers interact with daily (parking, vending, laundry), coupled with a seamless, easy experience, results in more Apple Pay usage overall.?

Pushing point-of-sale decisions
USA Technologies? initial findings discovered that digital advertising on its point-of-sale platform resulted in a 22 percent uptick in total revenue, as well as an 89 percent increase in revenue via contactless purchases, including Apple Pay.

Additionally, contactless average tickets experienced a 12 percent increase.

This indicates that consumers are enthusiastic and willing to use mobile wallets to complete transactions, but may not be aware of which retailers support these contactless payment options.

Placing digital ads around point-of-sale machines offers shoppers a simple reminder that they can use Apple Pay to complete their purchase, and also educates them on the ease of using the solution.

Per a recent study from Auriemma Consulting Group, 70 percent of Apple Pay customers claim they are more likely to shop at a store that accepts the iOS payment service. More importantly, one in five smartphone users are expected to use mobile payment solutions by 2017, while the total value of these transactions is predicted to grow 210 percent this year, according to eMarketer.

Therefore, bricks-and-mortar retailers have a prime opportunity to begin implementing digital advertising at point-of-sale terminals to promote their Apple Pay acceptance and fuel more customers to check out with their smartphones.

This strategy can also result in higher revenue for stores, as individuals may be more likely to conduct an impulse purchase, or spend a higher amount, since they are not paying with cash or a visible credit card.

The Apple Pay advantage
USA Technologies found that digital ads promoting Apple Pay compatibility were far more effective than placing decals around point-of-sale areas. None of the company?s non-digital locations saw a massive increase in Apple Pay usage as a result of decal advertising, as opposed to the significant jump seen by those employing digital ads.

Consequently, retailers should leverage new products, services and payment technologies by advertising them through digital placements. 

This will prompt many users to follow these suggestions and use their smartphones as impromptu payment devices, which may translate to more conscious decisions to leverage mobile wallets in the future.

Other popular digital payment services ? including Android-friendly solutions ? could also experience similar upticks in in-store usage if retailers choose to roll out digital ads for them.

?Because the most popular mobile wallets are associate with a phone type or operating system ? Apple Pay, Android Pay and Samsung Pay ? the ads will appeal to the relevant built in user base and presumably prompt them to make a purchase ? or more purchases, more often ? with the associated wallets,? Ms. Duska said.