Apple Pay Messaging at Point-of-Sale Drives 135% Increase in Mobile Payments Usage

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Results of 6-Month Study by USAT Show Marketers Who Promote Apple Pay
See Increase in Mobile Payments and Overall Spend at Point-of-Sale

MALVERN, Pa.–(BUSINESS WIRE)–#AndroidPayUSA
Technologies, Inc.
(NASDAQ:USAT) (“USAT”), a payment technology
provider of cashless and mobile transactions in self-serve retail, today
announced the results of a six-month study testing targeted
point-of-sale advertising of Apple Pay, which is transforming mobile
payments with an easy, secure and private way to pay that’s fast and
convenient. Based on the results showing a steady upward trajectory in
mobile payment usage, USAT concluded that smartphone users shown digital
advertising at point-of-sale through the ePort Interactive platform are
more apt to pull out their iPhone to make a purchase, and even spend
more.


Findings by USAT after 24 weeks show targeted, digital advertising on
USAT’s ePort Interactive platform that highlight Apple Pay availability
at point-of-sale resulted in a:

  • 36.5% increase in overall sales
  • 44.6% increase in total transactions
  • 6% increase in total contactless average ticket; 18% at week 20*
  • 55.5% increase in revenue through contactless purchases, including
    Apple Pay; 121% at week 20*
  • 135.2% increase in overall mobile payment usage

*Weeks 21-24 historically represent a seasonal dip in visits to vending
machines overall.

The study’s results suggest targeted advertising can help boost mobile
wallet use. The study found that the number of NFC or contactless mobile
wallet transactions – triggered when consumers hold their smartphones up
to the screens – increased by an astounding 135.2 percent on machines
with targeted messaging.

USAT initially unveiled the first four weeks of data at the National
Automatic Merchandising Association’s (NAMA) OneShow in Chicago in April
2016, followed by a press release in June of this year. With the release
of its latest study, the company has now updated its findings to include
six months of data and tracking, bolstering and extending the initial
results.

“Based on our study, we believe that when businesses and operators
present consumers with the option to pay for items with Apple Pay, the
number of mobile payments made and the amount spent, increases,” said
Maeve McKenna Duska, senior vice president of marketing and sales, USA
Technologies. “The data from this study suggest that call-to-action
messages underscoring speed, convenience and security of Apple Pay can
act as an electronic gateway for consumers to learn about and use the
mobile wallets already installed on their phones. Further, unattended
markets are continuing to drive Apple Pay usage as it offers consumers a
simple and convenient way to pay without cash or a credit card.”

The results of the study are clear: when consumers are asked to pay with
their phones, they do. But they’re also more likely to make a purchase
that they otherwise might not, regardless of how they ultimately pay for
their items.

Furthermore, the numbers provide evidence that negative seasonality
trends may be tempered, and even reversed, by telling consumers they
have an option to pay with Apple Pay.

About the Study:

The study measured the impact of targeted digital advertising screens on
consumers’ use of mobile wallets – primarily Apple Pay – across 35
vending machines located in New York and Louisiana over a six-month
period from March to August, 2016. Machines were outfitted with USAT’s
proprietary ePort® Interactive displays, which process magnetic stripe
credit and debit cards, as well as mobile wallet payments. The displays
were programmed with an image of an iPhone and a call for consumers to
“Pay with your favorite card using Apple Pay.”

The 130 devices in the control group, on the other hand, simply
displayed “Ready – Swipe or Tap Now” above the Apple Pay and other
contactless payment services logos.

While the initial, four-week results showed both sales and average
contactless ticket increases, the extended results provide insight not
only into how consumers interact with vending machines displaying
interactive messaging, but into broader consumer adoption of consumer
wallets. The full results of the study, detailed in a white paper titled
Targeted
Advertising Leads to Surge in Contactless Sales
,” are available upon
request.

Useful Links:

USA Technologies: https://usatech.com/
Twitter: https://twitter.com/usa_tech
YouTube: https://www.youtube.com/user/USATechnologies
Resource
Center: https://usatech.com/resource-center/the-benefits

Sales and Partnership Inquiries:

Please contact USA Technologies, Inc. at +1 800.633.0340 or sales@usatech.com.

USA Technologies:

USA Technologies, Inc. is a premier payment technology service provider
of integrated cashless and mobile transactions in the self-service
retail market. The company also provides a broad line of cashless
acceptance technologies including its NFC-ready ePort® G-series, ePort
Mobile™ for customers on the go, ePort® Interactive, and QuickConnect,
an API Web service for developers. USA Technologies has 78 United States
and foreign patents in force; and has agreements with Verizon, Visa,
Chase Paymentech and customers such as Compass, AMI Entertainment and
others. For more information, please visit the website at www.usatech.com.

Forward-looking Statements:

“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: All statements other than statements of historical fact
included in this release, including without limitation the business
strategy and the plans and objectives of USAT’s management for future
operations, are forward-looking statements. When used in this release,
words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”,
and similar expressions, as they relate to USAT or its management,
identify forward-looking statements. Such forward-looking statements are
based on the beliefs of USAT’s management, as well as assumptions made
by and information currently available to USAT’s management. Actual
results could differ materially from those contemplated by the
forward-looking statements as a result of certain factors, including but
not limited to, the ability of USAT to predict future market conditions
and consumer behavior; the possibility that all of the expected benefits
and efficiencies from digital advertising highlighting Apple Pay and
other contactless payment services logos, including increases in overall
transactions, revenue and/or average ticket, will not be realized by all
vending operators and on all vending machines or within the expected
time period; and the ability of USAT to operate without infringing or
violating the intellectual property rights of others. Readers are
cautioned not to place undue reliance on these forward-looking
statements. Any forward-looking statement made by us in this release
speaks only as of the date of this release. Unless required by law, USAT
does not undertake to release publicly any revisions to these
forward-looking statements to reflect future events or circumstances or
to reflect the occurrence of unanticipated events.

– G-USAT –

Contacts

Media Contacts for USA Technologies:
ANW Networks
Alicia
V. Nieva-Woodgate, +1 415.515.0866
alicia@anwnetworks.com
or
Melissa
Hourigan, +1 720.988.3856
melissa@anwnetworks.com
or
Investor
Relations:

Blueshirt Group
Michael Bishop +1 415.217.4968
mike@blueshirtgroup.com