Cashless Payment SystemsAndCanteen ManagementSolutions

What is the Business Case for Cashless?

One or more of the following points would normally apply for a potential customer to start building a business case for cashless

• Costs – Cash costs money, typically 5-8%, so no cash counting, handling or banking charges

• Control – Of subsidy, variable tariffs or free issue in catering and vending

• Security - Of catering funds, reduces cash ‘Shrinkage’ that’s the takings that don’t actually get banked

• Speed - Reduce transaction times and queues – Typical 5 seconds per transaction, fewer Till points, less

hardware and fewer catering staff – cashless transactions are 3 to 4 times quicker than cash and 6-8 times

quicker than Credit/ Debit cards

• Catering Revenue - Average spend increases, total revenue increases

• Reliability - 80% of vending machine downtime is related to faults with coin mechanisms

• Vending Revenue – expect to increase up to 30% in vending sales, impulse sales, availability & pricing

control

• Maintenance Costs - Fewer maintenance calls = reduced maintenance cost

Coca Cola budget for the cash in vending machines to cost them 8% of the total spend - in transportation and

banking costs and shrinkage

What are the Benefits? - For the Client

• Reduce the cost of providing the catering service, catering always has a cost,

even with zero subsidy contracts so cashless systems cut the overhead costs

for clients

• Close control/ targeting of free-vend / subsidy, only provide benefits for the

people you want to receive it

• Maximise use of the catering facilities (fixed overheads) and generate loyalty

• Streamline internal charging/ cross charging for Hospitality

• Capability to fully integrate with other employed card applications

• Management Information allows the Client to audit the Caterer and Vending

Operator at a higher level

• Multi application cards add value to the client and customer alike, if there is

money on a card behaviour changes because the cardholders value their

card more

What are the Benefits - For Cardholders • It provides them with access to subsidised catering and vending

• It’s quicker, maximised break times (reduced queues)

• No more searching for change, you always have ‘loose change’ only it’s

on a card

• Loyalty can be rewarded through promotions

• Discounts and rewards can easily be added for individuals and groups

• Cardholder have more confidence as individual card transactions are logged

so that in the event of loss or damage, a new card can be issued without loss

of value to the user.

• If the customer (cardholder) gets no benefit from the card they won’t use it,

the only choice left is to give them no choice!

Cashless Systems only work well when the user (customer) gets some

benefit from using it

What are the Benefits - For the Caterer

• Increased efficiencies

– No cash floats to manage, no cash counting

– Speed, fewer till points

– Positive cash flow – The Pot!

– Secure the funds at the point of loading

– Reduced labour cost

– Reduction in cost of dealing with cash (cash office, transportation or banking)

– It’s more hygienic not handling cash

• Increase sales - impulse purchases

– Encourages on site spending, loyalty

• Analysis - Cash is anonymous

– Detailed transaction logging CRM data enables you to target your customers

Cashless Vending – A Simple Business CaseBusiness Case - Capping Cost of Free Vend

Number Free Vends Qty Annual Cost/ Cup Annual Cost Number Cost of Cashless

Employees 1,000 6 1,440,000 0.12 £172,800Vending Machines 10 £6,500

Capped 1,000 4 960,000 0.12 £115,200 Annual Maintenance £975Annual Cost Saving £57,600 Annual Cost 5 years £2,275

Recurring Annual Saving £55,325

Business Case - Add Paid for Cashless Vending

Number Vends Qty Annual Cost/ Cup Annual Cost Number Cost of CashlessEmployees Free Vend 1,000 6 1,440,000 0.12 £172,800Employees New Free Vend 1,000 4 960,000 0.12 £115,200

Vending Machines 10 £6,500

Employees Paid Vend 1,000 1 240,000 0.15 £7,200 Loaders 2 £6,800

Annual Maintenance £1,995Annual Cost Saving £64,800 Annual Cost 5 years £3,295

Recurring Annual Saving £61,505

So how do we sell a Cashless System?

• It’s still a system, like an access control system is a system, is it not?

• Or is it a system, like the banking system is a system?

• It has a database holding ‘data’.............

• Is the ‘data’ just data, or is there more to it than that?

• To the caterer or the client it’s their own banking system, with it’s own currency

• It’s the way they receive their revenue

• When it works as it should it increases their competitiveness and adds to their bottom line.

• When it causes problems they lose money and profit and we lose our customers

Do you have requirement of ePayments / Canteen Management solutions

Phone: +971-4-25 25 325Fax: +971-4-25 25 645

Email: info@dfs.aeWeb: www.dfs.ae