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https://www.straitstimes.com/busine...ing-to-digitise-vending-machines-in-singapore
SINGAPORE - An ongoing pilot to make vending machines smarter will allow customers to make payments via national QR code SGQR, and operators to monitor remotely their inventory levels.
This marks the latest move to digitise the traditionally cash-reliant vending machine sector, where local sales are expected to exceed US$72 million (S$98 million) next year, up from US$67.2 million in 2017, according to data from research firm Euromonitor International.
The trial involving SGQR is rolled out by payment processing platform Fomo Pay and fintech firm D'Cube Concepts, which are targeting to upgrade 1,000 vending machines by end-2020.
The plan includes expanding such a solution to other types of unmanned operations like laundromats.
For now, 12 vending machines of supplier Apex Vending have been running the solution for about a month. Its director Wilson Teo said at least 20 per cent of payments are made via SGQR, which consolidates more than 20 e-payment schemes into a single code.
The trial, involving machines at TripleOne Somerset, Marina Bay Financial Centre and other places, is slated to end in December.
Meanwhile, more companies in Singapore have been looking at digitising vending machine operations, in a move to reduce labour costs and financial transaction fees as well as to cater to consumers' changing spending habits.
At the start of this year, equipment manufacturer Auresys introduced an app that allows customers to pay at vending machines via multiple e-payment channels by scanning a QR code as well, said its managing director Raymond Yap.
This connects to credit cards and e-wallets such as WeChat Pay and Alipay, he added.
While Auresys has enabled cashless payment through credit cards, ez-link cards and Nets Flashpay from six years ago, Mr Yap said such methods require card readers, which can cost millions to roll out on thousands of machines.
But e-payments via an app and QR codes are offline, allowing operators to save on telco costs and track user behaviour, he added. Operators can also roll out loyalty schemes for customers.
"A lot of businesses find it very difficult to survive. Even those who produce their own drinks are struggling to keep profits up for their vending businesses," he said.
Consumer preferences are changing too, he added.
While about 5 per cent of sales from vending machines using its solutions were cashless transactions six years ago, it is now more than 40 per cent and climbing, he said.
In the next two years, he expects the app to be used in up to 6,000 machines, a rise from the current 2,500 that accept contactless payment.
FOMO Pay and D'Cube estimate Singapore to have about 30,000 vending machines.
Mr Teo of Apex Vending said he has been moving towards cashless payment, as the charges for counting and banking in coins can amount to almost 5 per cent of his monthly revenue.
Mr Daniel Koh, founder of D'Cube Concepts said that with transaction and inventory data, firms can apply analytics to find out customers' preferred products and payment modes. They can also manage manpower more effectively and cater to the preferences in different areas.
Mr Louis Liu, chief executive of Fomo Pay, added that he is in talks with around nine smart retail merchants, which may include laundromat or massage chair operators, to take on the solution.
Ms Jennie Toh, head of vending sales at beverage company Yeo's, which is among the major operators of vending machines in Singapore, said almost 20 per cent of its machines take ez-link and Nets payments.
It is in talks to potentially roll out QR code-enabled payments like SGQR in the near future.
While vending sales may get a boost from convenient payment options, said Associate Professor Lawrence Loh of the National University of Singapore Business School, the main draw will remain the machines' products.
Still, he expects demand for the products dished out by these machines to rise, given their convenience, wider array of offerings like hot meals, and absence of delivery fees.
https://www.straitstimes.com/busine...ing-to-digitise-vending-machines-in-singapore
SINGAPORE - An ongoing pilot to make vending machines smarter will allow customers to make payments via national QR code SGQR, and operators to monitor remotely their inventory levels.
This marks the latest move to digitise the traditionally cash-reliant vending machine sector, where local sales are expected to exceed US$72 million (S$98 million) next year, up from US$67.2 million in 2017, according to data from research firm Euromonitor International.
The trial involving SGQR is rolled out by payment processing platform Fomo Pay and fintech firm D'Cube Concepts, which are targeting to upgrade 1,000 vending machines by end-2020.
The plan includes expanding such a solution to other types of unmanned operations like laundromats.
For now, 12 vending machines of supplier Apex Vending have been running the solution for about a month. Its director Wilson Teo said at least 20 per cent of payments are made via SGQR, which consolidates more than 20 e-payment schemes into a single code.
The trial, involving machines at TripleOne Somerset, Marina Bay Financial Centre and other places, is slated to end in December.
Meanwhile, more companies in Singapore have been looking at digitising vending machine operations, in a move to reduce labour costs and financial transaction fees as well as to cater to consumers' changing spending habits.
At the start of this year, equipment manufacturer Auresys introduced an app that allows customers to pay at vending machines via multiple e-payment channels by scanning a QR code as well, said its managing director Raymond Yap.
This connects to credit cards and e-wallets such as WeChat Pay and Alipay, he added.
While Auresys has enabled cashless payment through credit cards, ez-link cards and Nets Flashpay from six years ago, Mr Yap said such methods require card readers, which can cost millions to roll out on thousands of machines.
But e-payments via an app and QR codes are offline, allowing operators to save on telco costs and track user behaviour, he added. Operators can also roll out loyalty schemes for customers.
"A lot of businesses find it very difficult to survive. Even those who produce their own drinks are struggling to keep profits up for their vending businesses," he said.
Consumer preferences are changing too, he added.
While about 5 per cent of sales from vending machines using its solutions were cashless transactions six years ago, it is now more than 40 per cent and climbing, he said.
In the next two years, he expects the app to be used in up to 6,000 machines, a rise from the current 2,500 that accept contactless payment.
FOMO Pay and D'Cube estimate Singapore to have about 30,000 vending machines.
Mr Teo of Apex Vending said he has been moving towards cashless payment, as the charges for counting and banking in coins can amount to almost 5 per cent of his monthly revenue.
Mr Daniel Koh, founder of D'Cube Concepts said that with transaction and inventory data, firms can apply analytics to find out customers' preferred products and payment modes. They can also manage manpower more effectively and cater to the preferences in different areas.
Mr Louis Liu, chief executive of Fomo Pay, added that he is in talks with around nine smart retail merchants, which may include laundromat or massage chair operators, to take on the solution.
Ms Jennie Toh, head of vending sales at beverage company Yeo's, which is among the major operators of vending machines in Singapore, said almost 20 per cent of its machines take ez-link and Nets payments.
It is in talks to potentially roll out QR code-enabled payments like SGQR in the near future.
While vending sales may get a boost from convenient payment options, said Associate Professor Lawrence Loh of the National University of Singapore Business School, the main draw will remain the machines' products.
Still, he expects demand for the products dished out by these machines to rise, given their convenience, wider array of offerings like hot meals, and absence of delivery fees.
