News

Consumers to spend $475 billion at self-service devices in '06

June 26, 2006

FRANKLIN, Tenn. - When it comes to paying for goods and services, consumers continue to take matters into their own hands. North American consumers are on pace to spend more than $475 billion at self-checkout lanes, ticketing kiosks and other self-service machines in 2006, an increase from $324 billion in 2005, according to a new research study conducted by IHL Consulting Group.

What's more, the revenue generated by self-service transactions is expected continue its growth in the coming years, said Greg Buzek, president of IHL Consulting Group, an analyst firm and consultancy that serves retailers and retail technology vendors.

"We expect to see expenditures made at self-service kiosks to rise by about 51 percent this year and 33 percent in 2007," Buzek said, adding that demand for self-checkout systems should push the dollar value of transactions up near $1.2 trillion by 2009.

"Consumers have become much more savvy," he said. "Their time has also become more valuable and limited, and self-service is one way they can speed along their buying experience. Retailers and other businesses are finding that self-service kiosks can significantly increase customer loyalty, as well as customer satisfaction."

In the market study, 2006 North American Self-Service Kiosks, IHL examines the increasing use of four types of self-service kiosks on which payment is accepted: self-checkout systems, ticketing kiosks, check-in kiosks, food ordering, and postal kiosks.

"Kiosks are fundamentally changing the way consumers do business," Buzek said. "Among retailers, we are seeing anywhere from 15 percent to 40 percent of all purchases are made at self-checkout machines. Usage is even more impressive at airports, where some airlines estimate that near 80 percent of passengers are avoiding the traditional check-in process and instead using self-check-in machines."