USA Technologies Customer, City Vending, Optimizes Cashless Payment for Improved Business Performance, Competitive Edge and

  USA Technologies Customer, City Vending, Optimizes Cashless Payment for
  Improved Business Performance, Competitive Edge and Consumer Satisfaction

Business Wire

MALVERN, Pa. -- June 10, 2013

USA Technologies, Inc. (NASDAQ: USAT), (“USAT”), a leader of wireless,
cashless payment and M2M telemetry solutions for small-ticket, self-serve
retailing industries, today highlighted its customer, City Vending Co., Inc.,
(“City Vending”) for its effective use of USAT’s ePort® and ePort Connect®
service for cashless payment and telemetry to drive improved business results.
Located in Fort Worth, Texas, City Vending has transitioned from zero to over
300 cashless payment terminals in less than a year and has indicated that it
has leveraged USAT’s cashless payment and telemetry offerings to drive
improved financial performance, customer retention and consumer satisfaction.

City Vending’s chief financial officer, Tom Elich, commented, “We believe
cashless has contributed to a 20%-30% sales uplift since we first began to
deploy cashless payment less than a year ago, with both credit and cash sales
up. When you spread that over our cashless machines deployed to date, that
equates to well over $100,000 in new annual revenue for City Vending. I have
never been so pleased.”

Based on a sampling of 125 machines over a nine month time period, the average
credit spend on City Vending’s cashless machines is approximately 48% higher
than the average cash purchase, which exceeds the average credit "spend"
derived from USAT’s 2013 Cashless Knowledge Base (recently released data based
on 62,000 terminals over a three month period, January-March 2013). According
to City Vending, beyond the immediate benefit to the consumer of being able to
purchase multiple products with one cashless transaction, City Vending has
used cashless to enhance its product offerings for higher priced products. For
example, sales of their energy and other premium drinks have grown by at least
50%.

“Cashless has not only provided City Vending with direct financial benefits,
but the consumer satisfaction and customer retention benefits have been
overwhelming—to the point where consumers go out of their way to thank us,”
continued Elich. “Our customers, from business to manufacturing complexes,
recognize that and appreciate our proactive approach.”

“We have also utilized the strategic opportunities a cashless payment platform
can provide to optimize our presence in a number of unique locations, like
hotels and bars. For example, in high cash-theft areas, cashless has
essentially eliminated that exposure for us. In bar locations, where cash and
coin can be limited, we are now contributing more strategically as a business
partner by offering more chips, salty snacks and cigarettes. It keeps
consumers happy—and in the bar,” said Elich.

City Vending is also using VendSys, a certified VMS (vending management
system) supplier that participates in USAT’s DEX partner program. USAT’s DEX
Partner Program optimizes customers’ use of cashless payment offerings by
integrating USAT’s wireless DEX and telemetry available through its ePort
Connect® service with one of several vending management solutions available in
the market today.

“City Vending’s experience with USAT’s cashless payment platform syncs with
the data we are seeing for many of other customers,” said Michael K. Lawlor,
senior vice president of sales and business development for USAT. “Our
recently released 2013 Cashless Knowledge Base showed a 28% increase in
average monthly revenues and 23% increase in average monthly transactions for
a dataset of approximately 10,000 vending terminals over a twelve month period
following deployment of USAT’s cashless payment offering.”

“We believe our Knowledge Base results, and those of customers like City
Vending, should not be overlooked in today’s competitive marketplace,”
continued Lawlor. “Every day, customers are walking away from cash-only
acceptance because they don’t carry enough cash—and mobile payment will only
exacerbate that trend. At the same time, 'coin/cash only' business operators
have few tools in their pocket to drive new opportunities. USAT’s cashless
payment platform can provide that assistance. It’s no longer about cash versus
credit or debit card acceptance, but about cashless igniting a connection with
the consumer that the self-serve, unattended market has never had before.”

About City Vending Company, Inc.:

City Vending Company has been serving the Dallas - Fort Worth Metroplex area
for nearly 50 years, including Irving, Frisco, Plano, Dallas, Fort Worth,
Lewisville, Denton, Arlington, Grand Prairie, Richardson and Weatherford. City
Vending offers snack and drink vending machines and services, office coffee
services, and refreshments, as well as coin-operated amusement machines, from
pool tables and juke boxes and amusements for bar or tavern. To learn more,
visit the website at www.cityvending.net.

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
small ticket, self-service retailing 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 85
patents; and has agreements with Verizon, Visa, Elavon and major customers
such as Compass, Crane, AMI Entertainment and others. 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 anticipated connections to our
network, 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 the 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, business, financial
market and economic conditions; the ability of USAT to use its Knowledge Base
to accurately predict future market conditions, consumer behavior and any
level of cashless usage for any particular channel or customer; the accuracy
of our predictions regarding the extent to which future growth of vending
transactions will rely on credit/debit/prepaid transactions in comparison to
cash transactions; the possibility that all of the expected benefits from
adoption of cashless payment and wireless telemetry, including incremental
revenues and profits, will not be realized by all operators, or will not be
realized within the expected time period; and whether, and to what extent, new
innovations in mobile payment technologies will accelerate a decline in cash
transactions and an increase in credit transactions. 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

Contact:

USA Technologies
Veronica Rosa
VP Corp. Comm. & Investor Relations
484-359-2138
vrosa@usatech.com
 
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