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While operators continue to struggle with the implementation of cashless payments to vending machines, many other industries have transitioned past the threshold of non-cash settlement and begun accepting contactless cashless payment media. Contactless technology allows the consumer to simply wave, or tap, a payment device in front of a contactless reader to complete a transaction.

Trials of proximity payment technology revealed that contactless payment technology produces higher transaction throughput, increased spend per transaction, and enhanced customer convenience. While the preferred contactless technology has been radio frequency identification (RFID), the newest trend favors near field communication (NFC) technology.

Unlike RFID, which requires a unique infrastructure to work, NFC is a more intuitive application that provides an open basis for connectivity and networking.
In addition, NFC can be housed in a mobile phone and offers built-in security, enabling it to be used for transaction settlement as well as data exchange. As attention shifts away from RFID to NFC convenience, the potential impact on the vending industry could be significant.

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Are consumers interested in using an NFC-enabled mobile phone for making purchases? A recent online survey conducted by Visa found that 61 percent of respondents between the ages of 25 and 34 responded favorably to making purchases using a mobile phone. Similarly, the survey found 64 percent of the respondents are interested in receiving coupons via a mobile device. In addition, more than half of the consumers surveyed admitted carrying a mobile phone at least 75 percent of the time.

The demand for NFC technology is being heavily driven by the emergence of contactless payment formats being packaged into mobile devices (m-commerce). The development and deployment of innovative chipsets for cellular phones is projected by ABI Research to lead to widespread adoption of NFC contactless payments over the next five years.