USA Technologies (NASDAQ:USAT), announced today the expansion of the Quick Start Program, designed to enable customers to purchase ePort hardware and back-end services with no money down.
The program has been exceptionally well received, resulting in orders by one customer for approximately 2,800 devices, representing approximately $2 million in revenue over a three-year contract period, in the first few weeks alone. The foregoing revenue estimate reflects hardware revenues, activation fees, and monthly service fees anticipated to be received by the company, but does not reflect interest or transaction processing fees. Devices are slated to be installed in locations nationwide.
The Quick Start Program allows USA Technologies' customers to rapidly deploy the ePort cashless payment solution in the vending, kiosk, laundry and other unattended retail industries without tapping into capital dollars. Under the program, customers pay a monthly fee which combines the cost of the ePort device and the ePort Connect® suite of turnkey, PCI-compliant card processing, communications, reporting and data services.
"Consumers continue to demand the ability to use credit and debit cards for every day purchases like vending. This demand, combined with the ability to increase revenues and increase prices with little to no decline in transaction volume that card acceptance provides our customers, makes implementing the ePort cashless payment solution increasingly more necessary for our customers," says Stephen P. Herbert, President, USA Technologies. "Now that we have eliminated the upfront financial hurdle with the Quick Start Program, our customers should move quickly to ramp up cashless acceptance in their machines."
The Program is an initiative that will help lower the capital cost and expense of getting started, while allowing USA Technologies' customers to benefit from their technology and give them the ability to compete immediately in the cashless marketplace.
Participants in the Quick Start Program also have access to the Business Planning Deployment process designed to identify the likelihood of success in locations throughout the customers' operation using data gleaned from the company's base of over 50,000 devices connected to the company's network.
"USA Technologies is firmly focused on empowering our customers to succeed. Cash-based businesses are quickly realizing the limitations of cash and coin payments and are looking for ways to increase sales and/or increase prices-both in new and existing locations. The ePort Cashless Payment System is a turn-key comprehensive program that does just that," concludes Mr. Herbert. "The System combines best-in-class hardware with a full suite of transaction processing, online reporting and customer services. Couple that with our Business Planning Deployment program which guides customers in making smart decisions about where to implement cashless using USAT's extensive market intelligence. And the Quick Start Program eliminates the up front financial hurdle-all leading to wide-scale adoption of credit and debit card acceptance in small-ticket self service marketing using our ePort solution."