The self-service kiosk industry grew 24 percent globally in 2013, and it is projected to continue this growth trend for at least the next five years. Increasingly, consumers are not only open to the idea of using a self-service checkout option, such as an interactive kiosk, but as the general public’s comfort level with these self-service technologies grow, consumers often demand a self-service checkout option due to the convenience and speed of checkout that these technologies provide.
The next wave of major innovation to self-service kiosk solutions is the integration of mobile payment solutions, such as Apple Pay. We are already integrating Apple Pay into our most recent custom kiosk projects, including a custom kiosk solution that will be rolled out to a national sandwich chain later this year.
The growth of Apple Pay
Tim Cook, CEO of Apple, stated that he expects “2015 will be the year of Apple Pay.” Recently, Apple announced that over 200,000 new self-service machines, including parking meters, laundry machines, and vending machines, are now integrated with Apple Pay. Since launching in September, Apple Pay has already become the most popular mobile payment method available. Apple Pay continues to add financial institutions to its roster of integrated payment providers, and now is integrated by over 750 banks and credit unions.
This upward trend is apparent in two major national retailers that were early adopters of Apple Pay technologies. Panera Bread recently reported that Apple Pay comprises over 80 percent of the restaurant chain’s mobile transactions. Whole Foods, another early Apple Pay adopter, has reported that mobile transactions have increased more than 400 percent since Apple Pay was made available to their customers three months ago.
How does Apple Pay work?
Apple Pay is extremely easy to use and fast to process a transaction, which is one of the key reasons for its rapid rise in popularity. The system works by having the user simply tap an iPhone to a payment machine and then the user touches their phone’s fingerprint sensor to authorize the transaction. Both devices, the phone and the payment machine, must be outfitted with near-field communication (NFC) chips that store the payment information and user credentials. Currently, this technology is available in Apple’s iPhone 6 and iPhone 6 Plus, but will soon also be available in Apple’s new watch, which will launch in April of 2015.
Apple Pay through self-service interactive kiosks
The rapid rise of Apple Pay and its expected continued growth in 2015 means that consumers are getting more and more comfortable with paperless payments, which also means that more consumers will look for self-service checkout options integrated with this new payment technology.
As a result, it is important for retailers to provide self-service payment machines, such as interactive kiosks, that are outfitted with the latest payment technologies to meet this growing consumer demand for mobile payments.
/ Frank Olea is the CEO of Olea Kiosks Inc. Frank has been designing and manufacturing kiosk solutions for almost 20 years and has held numerous kiosk industry Board of Director positions.