USA Technologies and Setomatic Systems Join Forces to Accelerate Cashless Payment in Multi-Billion Dollar Self-Service Laundry

  USA Technologies and Setomatic Systems Join Forces to Accelerate Cashless
  Payment in Multi-Billion Dollar Self-Service Laundry Market

  Setomatic to Transition Existing Cashless Service Base to USA Technologies

Business Wire

MALVERN, Pa. -- June 17, 2013

USA Technologies, Inc. (NASDAQ: USAT) (“USAT”), a provider of wireless,
cashless payment and M2M telemetry solutions for small-ticket, self-serve
retailing industries and Setomatic Systems (“Setomatic”), a designer and
manufacturer of cashless payment hardware and data services primarily for the
laundry industry, today announced a new, mutually exclusive agreement that
targets the move toward cashless payment adoption in the nearly $5 billion
self-service laundry market. The agreement joins two leading
solutions—Setomatic’s SpyderWash® technology and USAT’s comprehensive ePort
Connect® service platform—to bring the best in cashless payment value to
laundry operators as consumers increasingly opt to use their credit/debit card
or mobile phone to pay for laundry services.

Under the terms of the three-year agreement, USAT, through its ePort Connect
service, will act as the exclusive service provider for all credit/debit card
processing for Setomatic’s SpyderWash system. Conversely, USAT will market its
ePort Connect service in the United States laundry market exclusively through
Setomatic. In addition, over the next few weeks, the two companies will begin
the transition of several thousand of Setomatic’s existing cashless
connections to USAT.

Beyond the initial transition of Setomatic’s existing cashless connections,
both companies will be joining forces to increase cashless payment adoption in
the largely untapped coin-operated commercial laundry and multi-housing
laundry markets. According to the Coin Laundry Association, the U.S.
commercial laundry industry is comprised of 30,000-35,000 laundromats that
Setomatic estimates translates to roughly 2.5 million commercial washers and
dryers. Additionally, an industry participant indicates there are
approximately 3.4 million machines in the multi-housing market. While no
revenue figures are available for the multi-housing market, the Coin Laundry
Association estimates gross revenue in the laundromat market at nearly $5
billion annually.

“We believe the laundry market is still at the early stages of credit/debit
card adoption, so this is a great time to join forces with USAT in order to
bring SpyderWash customers the most value as they transition their machines to
cashless payment,” said Setomatic’s President, Michael Schantz. “Our
historical information already shows us that cashless helps build incremental
revenue for laundry operators. By aligning with USAT, we are taking this even
further.

“USAT has done a great job of making it easy for our customers to accept
credit/debit cards and their streamlined and improved rate structure was
extremely important to us. In addition, we were attracted to the scalability
of the ePort Connect platform and USAT’s commitment to new services such as
loyalty programs. We want to be able to pass on the benefits of those programs
to our customers. We are looking forward to getting started on the initial
transition and to working with USAT in the years ahead to transition the
laundry market to credit/debit and mobile payments.”

Setomatic’s SpyderWash System is an advanced, wireless payment system that
accommodates credit, debit, loyalty cards and NFC enabled mobile payment, as
well as coin. The Coin Laundry Association’s magazine, Planet Laundry,
selected Setomatic as their Industry Leader in the August 2012 issue stating
that Setomatic’s SpyderWash system has changed the face of the self-serve
laundry industry.

USAT’s ePort Connect service is a comprehensive suite of payment services
specifically tailored for the needs of the unattended, small-ticket market.
Designed to meet the unique needs of customers in the unattended, small-ticket
market, ePort Connect provides cashless and contactless payment acceptance and
processing via a simple and competitive blended transaction rate, 24 x 7
customer service, web-based reporting, and new consumer engagement services
such as loyalty programs.

“We are looking forward to welcoming Setomatic’s existing cashless customers
and working with Setomatic to target substantially more cashless connections
over the three year agreement period,” said USAT’s Chief Executive Officer,
Stephen P. Herbert. “This new relationship is one example of the work we have
had underway to leverage our leadership in vending to expand and diversify our
ePort Connect service base. The SpyderWash platform aligns extremely well with
our service, and by joining forces, we believe we can increase cashless
payment adoption in the laundry market with greater speed and efficiency.”

About Setomatic:

Setomatic is a privately owned and operated developer and manufacturer of both
open and closed loop card payment systems, drop coin meters and electronic
timers for the commercial laundry industry with manufacturing and engineering
facilities in California, Florida, New Hampshire, New York and in Israel.
Setomatic introduced the first electronic drop coin meter to the commercial
laundry market in the U.S. in the early 1980’s. Over the years, they have
manufactured drop coin meters and electronic timers for major OEMs such as
Whirlpool, General Electric, Wascomat and American Dryer. They introduced
their first hybrid card system to the commercial laundry market in 1995, which
allowed the operator to accept smart cards, credit/debit cards and coins on
the same machine. Their follow-up product, SpyderWash® was developed to
satisfy the consumers need to pay for their wash and dry with a simple swipe
or tap of their credit/debit card or mobile wallet, while giving the operator
all the advantages of full web-based reporting. To learn more, visit their
website at www.setomaticsystems.com.

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, Isis and 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 accurately predict
future market conditions and consumer behavior; whether, and to what extent,
existing SpyderWash customers will convert to USAT’s ePort Connect Service;
the accuracy of predictions regarding the level of cashless usage in the
commercial self-serve laundry industry; and the ability of USAT to adopt new
payment technology changes in the commercial cashless laundry industry.
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

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Contact:

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