Today’s consumers expect speed, convenience and flexibility in every transaction. But with bricks-and-mortar retail stepping up its game, can progressive payment technology help vending operators to stay competitive? Refreshment's Bryony Andrews explores.

The vending sector has always championed convenience and speed as its dual USPs. Now, with automation and frictionless payment becoming commonplace in traditional retail settings, vending and self-service outlets are having to work harder to maintain their position as the most convenient on-the-go option for busy consumers.

The payments landscape is changing fast. This means that to achieve the seamless transactions demanded by time-poor customers, vending operators need to be flexible and forward-thinking when choosing which provider of payment systems to work with. It is not enough to consider the needs of their customers now – how will they have changed by this time next year? Can payment hardware and software be updated as consumers’ preferred methods evolve? Which payment system suppliers are innovating to meet the needs of both business and consumer? In a complicated regulatory landscape, will your payment provider offer individualised support for your business?

Simplicity and speed

“The consumer demand for convenience, speed and security is significantly reshaping payments,” commented Michael Ault, managing director at myPOS UK, a provider of payment solutions for small businesses. “Shoppers want options, whether that’s tapping a card, paying with a phone or scanning a QR code.”

According to Thomas Steiner, vertical sales manager at tech company Seco, this expectation of speed, convenience and flexibility in every transaction is driving a shift toward contactless and mobile-first payment solutions, including NFC, mobile wallets and, increasingly, QR code payments.

“The rise of digital-native generations and the growing demand for touch-free interactions – accelerated by the pandemic – have made seamless, secure and fast payment options a baseline expectation,” he explained.

John Forde, head of vending at cashless payment solutions provider Nayax, also considers speed, ease-of-use and security as “baseline requirements” for consumers, who have demonstrated a growing preference for tap-and-go experiences, contactless payments and mobile wallets such as Apple Pay and Google Pay. He noted that they also increasingly expect integration with loyalty programmes and seamless digital receipts.

Nayax’s Monyx Wallet app is a recent example of a successful loyalty scheme: it allows users to pay, collect rewards and benefit from operator-driven promotions all in one place. “Our focus is on providing flexible, future-proof systems that allow vending operators to adapt quickly to changing consumer behaviour,” explained Forde.

Seco’s Steiner similarly identified the integration of loyalty and personalisation into payment systems as a key trend. “Consumers want more than just a transaction – they want an experience that rewards them and adapts to their preferences,” he said.

Tailored for vending

So what does this seismic shift in payment expectations mean for vending, historically a cash-based realm?

“In the vending sector, these trends are reshaping how machines interact with users,” said Seco’s Steiner. “Traditional coin and bill acceptors are being replaced or supplemented by smart payment modules that support contactless cards, mobile wallets and QR codes. This not only improves the user experience but also reduces maintenance and cash-handling costs for operators.”

According to myPOS’s Ault, meanwhile, customers now expect the same payment experience from a vending machine as they do in-store: quick, tap-and-go and card- or phone-ready. This is pushing operators to modernise, as the ability to accept contactless and digital payments not only attracts more users but also reduces cash-handling costs and downtime.

“We listen closely to the needs of small business owners and provide solutions that are easy-to-use, affordable and built for long-term growth,” Ault said. “Our range of card devices work seamlessly in self-service settings and support all major payment types.”

Nayax’s Forde noted that changing consumer expectations have led to a sharp decline in cash vending transactions and a rising demand for machines equipped with modern, flexible payment systems. More than 80% of all transactions are now cashless, he told Refreshment.

“Consumers now expect vending machines to accept contactless cards, mobile payments and even QR codes,” said Forde. “This shift is pushing operators to upgrade or replace outdated hardware and invest in cloud-based systems that enable remote monitoring and real-time data analysis.”

Ultimately, the best payment solutions for vending operators are those that have been specifically designed for the vending sector, rather than relying on a one-size-fits all system. Seco, for example, works closely with its partners to co-develop tailored payment solutions, ensuring flexibility and scalability across different markets and use cases.

For maximum customer convenience, its modular, future-ready payment controller KarL4 platform supports multi-payment integration – including QR code payments. According to Steiner, QR code payments are gaining traction in both urban and emerging markets due to their “simplicity and low infrastructure requirements”.

Support for small businesses

Digital payments, in addition to being more convenient, offer another vital opportunity for vending businesses. The ability to track payment data in real time means that operators can optimise their product offerings, pricing and machine placement to increase sales.

“Behind the scenes,” MyPOS’s Ault told Refreshment, “we’re seeing a shift toward smarter, integrated systems that combine payments with analytics. Consumers may not see that part, but it’s key to improving experiences and business decisions. At myPOS, we are focused on providing flexible tools that empower small businesses to meet these evolving expectations.”

Notably among payments providers, myPOS provides vendors with instant payouts, so operators can reinvest faster, manage inventory more efficiently and even monitor sales performance remotely.

“What sets us apart is instant settlement,” continued Ault. “Businesses receive funds straight into their myPOS account after each transaction, with no waiting period. We also offer remote management tools, detailed sales insights and integration with smart vending systems. It’s all designed to help operators stay agile, meet customer expectations and grow with confidence.”

Nayax’s popular VPOS Touch and Onyx devices are another great example of harnessing data to optimise operation and sales. As well as supporting a wide range of payment options – from contactless cards to QR codes and mobile apps – the devices also connect with the provider’s full digital ecosystem, including telemetry, inventory management and customer engagement tools.

Seco’s Steiner further explained some of the strategic benefits of digital payment. “With real-time data from the customer and the machine, operators can tailor their offering to the customer’s preference at the time and location of purchase,” he said. “Payment innovation is no longer just about convenience – it’s a strategic tool for increasing sales and operational efficiency.”

Seco’s Clea Vend solution, for example, provides a cloud-based ecosystem for remote management, analytics and predictive maintenance. “It enables operators to monitor payment trends, track machine performance and deploy updates remotely, ensuring machines are always aligned with consumer expectations,” said Steiner.

Meeting the challenges ahead

Payment technology is in constant flux, rapidly changing and evolving, so anticipating future challenges is no mean feat.

“A key challenge will be maintaining security and regulatory compliance amid fast-evolving technology and cyber threats,” said Nayax’s Forde.

Seco’s Steiner similarly identified “balancing innovation with security and interoperability” as a major future challenge. “As payment systems become more complex and interconnected, ensuring data privacy, fraud prevention and compliance with evolving regulations will be critical,” he added.

What’s more, as vending machines become smarter and more connected, operators will need systems that can scale without adding complexity. MyPOS is addressing this by offering “robust, flexible and futureready payment solutions” that don’t tie businesses into long-term commitments or delayed settlements. “We’ll continue to focus on simplicity, speed and security, ensuring vending operators can adapt quickly and stay ahead of customer expectations in a fast-changing market,” promised Ault.

A further challenge is posed by the integration of new payment technologies with older vending machines – a process that can be complex. Nayax addresses this by offering solutions with “overthe- air” updates and modular hardware that can easily retrofit existing machines. “We’re also investing heavily in research and development and in partnerships to support open, interoperable ecosystems, ensuring our customers can adapt quickly to whatever comes next in the digital payment landscape,” Forde told Refreshment.

Adapting to regional payment preferences can present difficulties for operators whose businesses cross counties, or even operate internationally.

“While NFC might dominate in one market, QR codes or mobile wallets may be preferred in another,” Seco’s Steiner pointed out. “Our approach is to build modular, adaptable systems like KarL4 and Clea Vend that can be easily configured to meet local needs. We also see a growing need for sustainability and energy efficiency in vending operations.”

Looking ahead, it is clear that as payment systems continue to evolve, vending operators need to choose their payment partner well. From loyalty programmes to consumer insight analysis to remote

management, the smartest systems are those that offer value that lasts beyond the moment of payment – for both operator and consumer.

Consumer attitudes

The European Central Bank’s most recent study on the payment attitudes of consumers in the euro area (SPACE) shows that while digital payments continue to rise, cash remains a key payment method.

• Cash most frequently used payment method in-store, although use has continued to decline

• Share of digital payment instruments continues to increase in value terms, with cards still dominant and share of mobile apps on the rise

• Majority of consumers value having the option to pay with cash

Despite the trend towards digital payments, the number of cash payments remained significant in 2024, especially for small-value and person-to-person payments, according to the European Central Bank (ECB)’s latest study on the payment attitudes of consumers in euro area countries.

The study, which is repeated every two years, examines how consumers use various payment methods and their preferences, as well as how they perceive the accessibility and ease-of-use of these methods. Providing the ECB and the national central banks with valuable insights into payment behaviours, this research is also crucial for tracking changes in these behaviours over time.

In terms of number of payments, cash was used at the point of sale in 52% of transactions, down from 59% in 2022. In terms of value, cards were the most dominant payment instrument (with a share of 45%, down from 46%), followed by cash (39%, down from 42%) and mobile apps (7%, up from 4%).

The growing share of digital payments is supported by an increase in online payments, which accounted for 21% of consumers’ day-to-day payments in number and 36% in value, up from 17% and 28% respectively in 2022. The most frequently used instrument for online payments was cards, accounting for 48% of transactions, followed by other electronic means of payment such as payment wallets and mobile apps, which together accounted for 29% of transactions.

Consumers’ stated payment preferences have not changed since 2022. In 2024 as in 2022, 55% of consumers prefer paying with cards and other non-cash means in shops; 22% prefer paying with cash and 23% have no clear preference. On average, consumers deem cards faster and easier to use. They consider cash more helpful for managing their expenses and protecting their privacy.

A majority of consumers (62% in 2024, up from 60% in 2022) consider it important to have cash as a payment option. And a large majority (87%) are satisfied with their access to cash, finding it very or fairly easy to withdraw cash from an ATM or a bank, even though satisfaction decreased slightly (down from 89% in 2022).

The first SPACE study was conducted in 2019 and follow-up studies are carried out on a regular basis to continue our research on payment trends. The next SPACE study is scheduled to be published in 2026.