Source: USA Technologies
ViVOtech, the leading supplier of contactless payment solutions and USA Technologies (OTC Bulletin Board:USTT), a leader in the networking of wireless non-cash transactions for financial/network services and energy management, today announced a joint effort to deliver the first radio frequency cashless credit card transaction technology to the micro-payments segment.
Known as PayPass from MasterCard, ExpressPay from American Express and Blink and Tap N' Go technologies by others in the payment industry, the credit card associations in conjunction with issuing banks started providing credit cards embedded with RFID (Radio Frequency Identification) technology last year. Additionally, thousands of major retailers and merchants nationwide have been equipped to accept these new cards.
The contactless credit card initiative is targeting the micro-payments segment that is defined by transactions that are $5.00 dollars or less. As reported in the Wall Street Journal last week, the Tower Group concluded, "The market for valued at $5 or less accounted for $1.32 trillion in consumer spending in 2003, representing more than 400 billion transactions." The article also cited other research statistics which stated, "More than 37 million Americans are willing to use their cards for $5 or less and an estimated 6.5 million Americans would be comfortable using credit cards for transactions less than $1, according to a study released late last year by Ipsos-Insight, the latest available from the market research firm."
As part of this partnership, ViVOtech, and USA Technologies have been working together to capitalize on this enormous market opportunity. To do this, the Companies integrated USA's e-Port cashless transaction technology with ViVOtech's ViVOpay contactless readers and software services. The integrated technology platform enables vending machines to accept contactless payments, allowing vending operators to increase the average dollar amount spent per machine at peak hours, while reducing cash handling costs. Earlier this month, vending machines in Atlanta and New York City were equipped with the companies' intergrated solutions.
"We are delighted to partner with USA Technologies and bring contactless capabilities to vending machines - a move that will revolutionize the vending industry," said Mohammad Khan, president and founder of ViVOtech. "Since consumers will no longer need to carry exact coins to enjoy a drink or a snack, vending will be more convenient and popular than ever, driving up sales and profits for operators."
"The convergence of two powerful market trends made USA Technologies adopt RF or contactless technology for our customers. These trends are the increase of consumers making transactions less than $5 and how vehemently the credit card authorities are working towards replacing consumers traditional credit cards with new card embedded with contactless technology," said Stephen P. Herbert, President and COO, USA Technologies. "ViVOtech is the leader in contactless payment technology with more than 120,000 contactless payment readers being deployed in Quick Service Restaurants, Corporate Cafeterias, Movie Theaters, Convenience, Grocery, and Drug Store. We are proud to be their partner."