Payment Friction in Vending: Why it Happens and How to Fix It

Vending machines are expected to deliver instant gratification. Anyone buying from a vending machine wants that item to be dispensed as quickly and hassle-free as possible. Yet, one of the biggest challenges operators face is payment friction in vending. When customers encounter issues during checkout – whether it’s a card decline, poor connectivity, or limited payment options – the result is often lost sales and frustrated customers.

What Causes Payment Friction in Vending?

Payment friction occurs when the transaction process is anything but seamless and customers are left hanging and waiting for that vending item to drop. Common culprits include:

• Connectivity Issues: Machines relying on unstable networks can fail to process payments.
• Limited Payment Options: Cash-only or card-only machines alienate customers who prefer contactless payment vending or mobile wallets.
• Slow Transaction Times: Delays at the point of sale can lead to abandoned purchases.
• Security Concerns: Customers expect secure transactions; any perceived risk can deter them.

These pain points don’t just impact the customer experience – they directly affect your bottom line.

The Cost of Friction

Every failed transaction is a missed opportunity. Research shows:

• 71% of vending machine sales are now cashless, and customers spend 37% more per transaction when paying digitally ($2.24 vs. $1.78 for cash).
• Contactless payments dominate, making up 77% of all cashless vending sales.
• Mobile wallet usage in vending grew over 300% year-on-year, reflecting consumer preference for speed and convenience.
• Globally, 86.9% of U.S. point-of-sale transactions are cashless, and vending is following suit.

When machines fail to support the expanding range of payment methods – mobile wallets, alternative payments and more, customers walk away. In high-traffic environments, even the slight delay can cost sales – NFC contactless cards average 2.3 seconds per transaction, while mobile wallets take 3–5 seconds due to authentication steps.

How Operators Can Overcome These Challenges

The solution lies in modernizing vending machine payment solutions. Here’s how:

1. Offer Multiple Payment Methods
   Support cards, mobile wallets, QR codes, and contactless payments to cater to diverse preferences.
2. Ensure Reliable Connectivity
   Use robust, carrier-agnostic secure connectivity that guarantees uptime even in remote locations and when one carrier network experiences issues.
3. Prioritize Speed and Security
   Customers expect fast, secure transactions. Invest in technology that delivers both.

Enter TNS Complete Commerce

This is where TNS Complete Commerce comes in. Designed for vending operators, it provides:

• Omnichannel Payment Support: TNS’ secure, cloud-native payment orchestrator supports cards, wallets, APM, Android-based payment terminals and emerging payment methods for complete payment coverage, so you increase payment acceptance and future-proof your vending business.
• Global Connectivity: Delivered through TNS’ PCI DSS certified network, TNS connectivity solutions are fully managed, with multi-carrier redundancy, delivering ‘always-on’ connectivity for vending machines.
• End-to-End Security: Secure and compliant with built-in PCI DSS, P2PE, and tokenization protecting every transaction, providing you and your customers peace of mind.
• Simplified Management: One partner to manage payments and connectivity, with proactive monitoring, 24x7x365 support and a centralized view for reporting and analytics.

By leveraging TNS Complete Commerce, operators can eliminate payment friction, reduce lost sales, deliver the seamless experience customers expect, while optimizing costs and operational efficiency.

Payment friction isn’t just an inconvenience – it’s a revenue killer. The good news? With the right technology partner, you can turn frustration into satisfaction and lost sales into loyal customers. TNS Complete Commerce is your key to unlocking a frictionless vending experience. Contact our team to learn more.