Cantaloupe Inc., a digital payments and software services company that provides end-to-end technology solutions to power self-service commerce, recently completed its 2023 Micropayment Trends Report, which studied micropayment trends (transactions less than $10) at food and beverage vending and at amusement machines throughout the U.S. and Canada in 2022.
The results, which covered a sample of more than 700,000 active Cantaloupe card readers, showed that consumers are increasingly using cashless payment methods – even for smaller ticket transactions.
“Cantaloupe has a unique perspective in the micropayments space, which is different from other payment processors,” Ravi Venkatesan, CEO of Cantaloupe Inc., said in the announcement. “Cantaloupe’s network of over 1.15 million active locations is spread throughout many industry verticals, so while this report focuses on just a sliver of self-service retail types, we can extrapolate larger trends from this data and are excited with the momentum in self-service commerce that it highlights.”
According to Cantaloupe’s 2023 Micropayment Trends Report, consumers spent more than $2.5 billion at food and beverage vending machines in 2022, a 19% increase over 2021. At those particular machines, cashless payments accounted for 67% of all sales in 2022, an increase of 11% from 2021. Of those cashless sales, tap-to-pay made up an average 53% of cashless sales for the year. In terms of consumer purchases, the study found that the average cashless ticket size for food and beverage vending machine purchases was $2.11, compared to only $1.36 for cash purchases.
“Our 2022 sales data reinforces that consumers spend more when they go cashless, to a staggering degree,” Venkatesan continued in the announcement. “For self-service retail operators, this showcases the significant revenue increases they can realize by having cashless card readers on their machines. Especially since for food and beverage vending machines alone in 2023, we expect cashless payment transactions to grow 6 to 8% and contactless payments to grow 6 to 7%.”
Concerning inflation on the price of consumer goods this past year, Cantaloupe’s 2023 Micropayment Trends Report shows that even as the rate of inflation increased (peaking in June 2022 at 9.1%)1, and even as operators increased prices in response, vending machine purchases remained stable. Cantaloupe’s team noted how this validates the resiliency of food and beverage vending services.
Additionally, the adoption of Europay, Mastercard and Visa (EMV) security standards for payment cards also has had an impact on self-service retail. Cantaloupe found that EMV payments grew more than 350% in 2022 as a share of cashless sales at food and beverage vending machines over the course of the year.
“We are excited about the results of our 2023 Micropayments Trends Report,” Venkatesan added in the announcement. “Our findings reinforce the consensus that consumers are shifting to cashless and contactless payment options, even for smaller, on-the-go purchases. We feel the trends revealed in the report are relevant to self-service retail as a whole and look forward to observing how they evolve in 2023.”