USA Technologies’ Two-Tier Pricing Program Tops Milestone of 11,000 Locations Nine Months After Launch

  USA Technologies’ Two-Tier Pricing Program Tops Milestone of 11,000
  Locations Nine Months After Launch

Business Wire

MALVERN, Pa. -- November 05, 2012

USA Technologies, Inc. (NASDAQ: USAT) (“USAT”), a leader of wireless, cashless
payment and M2M telemetry solutions for small-ticket, self-serve retailing
industries, today announced the achievement of a milestone 11,000 customer
locations utilizing USAT’s Two-Tier Pricing Program, nine months after
launching the program in January.

USAT’s Two-Tier Pricing Program provides operators of small-ticket, unattended
terminals such as vending machines, the ability to charge two different
prices—a standard retail price for credit/debit card transactions, and a
discounted price for cash purchases.

Jim Turner, vice president of deployment services for USA Technologies,
commented: “Our Two-Tier Pricing Program has been gaining strong traction with
operators of our unattended retail locations as they recognize the benefits of
cashless adoption and the valuable role two-tier pricing can play in their
purchasing decision. In addition, we continue to monitor consumer reaction to
two-tier pricing through the USAT Knowledge Base, including a recent analysis
of two-tier pricing deployments using a population three times larger than our
initial analysis earlier this year. We believe the positive data from this
recent analysis continues to strengthen the case for cashless adoption by our
customers,” said Turner.

The Benefits of Two-Tier Pricing:

  *Provides operators the opportunity to improve their return on investment
    when implementing cashless and telemetry solutions by offering consumers
    the option of two vend prices – a standard price for credit/debit and
    discounted price for cash;
  *Incremental revenue for operators due to higher vend prices;
  *Offers operators the ability to drive cashless convenience more deeply
    into their customer base due to improved ROI; and,
  *Provides a flexible system that enables operators to set their own
    credit/debit price, by account or machine, remotely through the customer
    portal of ePort Connect®.

Findings from the Latest Two-Tier Pricing Knowledge Base Study

In September 2012, using its ePort Connect Knowledge Base, USAT evaluated the
impact of two-tier pricing on consumer behavior. Following the initial
analysis conducted in early 2012, which evaluated data from approximately 450
ePort terminals with two-tier pricing, the September analysis evaluated
cashless sales and usage data from approximately 1,500 terminals.

The analysis tracked key metrics, per terminal, for the one month before and
after deployment of USAT's Two-Tier Pricing Program to gauge the impact that
two-tier pricing was having on cashless sales and usage. Consistent with the
initial analysis, all key metrics—cashless sales as a percentage of total
sales, aggregate cashless dollars, number of vends and average credit
vend—grew, supporting USAT’s view that consumers are willing to pay for the
convenience of cashless even with a two-tier pricing structure. (Note: this
analysis did not include vending machines where key metrics were affected by
outside market conditions during the period studied, such as the opening of a
college around the time that two-tier pricing was enabled.)

What Customers are Saying

Snackworks: “Based on our own experience, consumers appear to have accepted
two-tier pricing because of the convenience it offers,” said Lisa Leuchter,
founder and co-owner of Snackworks, with well over 1,000 vending and coffee
machines in Florida. “Adding USAT’s Two-Tier Pricing Program as one of our
cashless payment options has helped us to be more flexible and competitive,
and is bringing in enough additional pre-tax profit to pay for our card
processing and one-third of our ePort Connect service fees. The program has
made installing cashless payment more viable with a broader base of
customers," she said.

The Rawls Distributing Company: “We are continually adding new technology and
services to improve operations and the customer purchasing experience,” said
Robin Rawls, founder and owner of Rawls Distributing Company, with  1,200
vending machines in Georgia. “I was prompted to try USAT’s Two-Tier Pricing
Program when I learned about the positive findings in their latest study of
two-tier deployments. Now, we try to get two-tier pricing on all of our
machines as existing contracts run out with some of our more intractable
clients. Their employees want the service and are willing to pay for it,” he

CNC Vending: Another company taking advantage of USAT’s Two-Tier Pricing
Program is CNC Vending, of Texas (“CNC”). Owner/operator, Chuck Olson,
acknowledges that consumers are spending more at CNC machines when they can
pay with their debit or credit cards instead of cash—on multi-vends and on
higher priced items. “Every CNC vending machine that goes out now has an
NFC-enabled card reader, giving our consumers more convenience, ease of use
and speed of transaction, adding so much more value to their shopping
experience. This was another reason for going with USAT’s Two-Tier Pricing
Program. We can offer every payment option and open up new streams of
revenue,” he said.

“We continue to enhance the value of every connection for our customers, and
for USAT,” said USAT’s Turner. “Our Two-Tier Pricing Program is a great
example of that; we are extremely pleased that we have attracted 11,000 ePort
Connect locations to our Two-Tier Pricing Program in just nine months.
Operators of our self-serve retail locations, particularly in vending, are now
realizing that USAT’s Two-Tier Pricing Program can help them to quickly scale
their cashless deployments while also enhancing their business returns,”
concluded Turner.

For more information about USAT’s Two-Tier Pricing Program, contact a USAT
sales representative at 1-800-633-0340. For information on USAT’s 2012
Knowledge Base study released in June 2012 that compiled and evaluated data
from approximately 57,000 terminals across 39 different channels and customer
types on USAT’s ePort Connect service, click here or access at

About USA Technologies:

USA Technologies is a leader of wireless, cashless payment and M2M telemetry
solutions for small-ticket, self-serve retailing industries. ePort Connect® is
the company’s flagship service platform, a PCI-compliant, end-to-end suite of
cashless payment and telemetry services specially tailored to fit the needs of
the small ticket, self-service retail industries. USA Technologies also
provides a broad line of cashless acceptance technologies including its
NFC-ready ePort® G8, ePort Mobile™ for customers on the go, and QuickConnect™,
an API Web service for developers. USA Technologies has been granted 84
patents; and has agreements with Verizon, Visa, Elavon and major customers
such as Compass, Crane, AMI Entertainment and others. Visit the website at



USA Technologies
Veronica Rosa
VP Corp. Comm. & Investor Relations
Press spacebar to pause and continue. Press esc to stop.