USA Technologies, Inc. (NASDAQ:USAT) has hit an inflection point as it move closer to 500,000 connections and now focus comes on increasing funds generated from operations. The increased acceptance of cashless alternatives at vending machines and conversions of prospective connections will lead profitability.
The buzz
USA Technologies is a major provider in the small ticket, food and beverage vending market and is expanding its services and solutions to other unattended industry segments, like amusement, kiosk, commercial laundry and others. Mainly serving as an intermediary between credit card processors and vendors, they also offer services such as feedback and data collection. As a market pioneer, they are in position to cash on industry drifts as they move closer to long-term profitability.
USA Technologies functions within the unattended POS industry mainly in the small ticket electronic payment industry both overseas and domestically. The progression of cashless payments and the growing adoption of mobile payments are anticipated to support revenue growth. By 2019, outlay in the U.S. from debit, prepaid, electronic benefits transfer and credit cards are anticipated to rise to almost 67% of transactions dollars quantified versus almost 57% in 2014. The fraction of vending machines prepared for cashless transactions was 15% in 2015 compared to 11% in 2014, providing vast growth potential.
Technological developments have focused on offering dual advantages for both the merchants and consumers who implement it. Offering the alternative of non-cash procedures increases the count of potential transactions and enhances convenience as a person would not be blocked by a lack of cash or particular change.
Likewise, merchants are able to take advantage of on voluntarily available feedback, permitting them to support operations. Evolving electronic transaction functionalities offers them with real-time inventory data and sales useful for forecasting uses as well as information pertaining purchasing patterns and particular payment preferences.
