USA Technologies, Inc. (NASDAQ: USAT), a leader of wireless, cashless payment and M2M telemetry solutions for self-serve, small-ticket retailing industries, today announced it had entered into a new exclusive three year agreement with AMI Entertainment Network, Inc. (“AMI”), a manufacturer of touch screen entertainment products and electronic jukeboxes. While thousands of AMI’s Megatouch countertop products are already connected to USAT’s ePort Connect® Service pursuant to the prior agreement between the parties, this new agreement broadens the relationship, making USA Technologies the exclusive provider of transaction processing services for all of AMI’s credit- and debit card-enabled Megatouch game machines in addition to all of the Rowe Jukebox game machines. Under the agreement, USA Technologies’ ePort SDK cashless payments software is installed into the machines and shipped by AMI to customer locations, ready to accept credit and debit cards for payment, as well as provide remote machine and sales data through USA Technologies’ ePort Connect Service. During the term of the agreement, USA Technologies will earn transaction and licensing fee revenues in connection with its transaction processing services.
USA Technologies’ ePort SDK is a software development kit that enables owners and operators of PC-based terminals such as kiosks, gaming systems and online jukeboxes, to quickly and easily build cashless payments functionality into their machines.
USA Technologies’ ePort SDK is supported by the Company’s ePort Connect service—a PCI-compliant, end-to-end suite of cashless payment and telemetry services specially tailored to fit the needs of the self-service retail industries such as vending, kiosk, amusement and gaming. ePort Connect enables self-service terminals to accept credit, debit, contactless cards and other cashless forms of payment, handles all elements of transaction processing, and allows customers to monitor and manage their terminals online, truly making USA Technologies a one-stop shop.
“We are very excited about our new agreement with AMI, which will help owners and operators improve the customer experience by providing a simple and convenient payment option via the credit- and debit card-enabled Rowe jukeboxes and Megatouch games,” said Stephen P. Herbert, Interim Chairman and CEO, USA Technologies. “Our historical data indicates that, compared to their average spending at unattended points-of-sale not enabled to accept credit and debit cards, consumers on average increase their spending when utilizing a credit or debit card. USA Technologies makes it easy for owners and operators to make the cashless payment choice with our one-stop, turn-key solution. AMI’s decision to ship their countertop games and jukeboxes equipped with the ePort SDK software makes it easy for their customers to enjoy the benefits of a cashless and telemetry embedded solution.”
USA Technologies’ ePort SDK further broadens the market for the Company’s products and services into the self-service kiosk market. According to IHL Consulting Group Market Study dated July 1, 2010, approximately $678 billion was transacted through self-service kiosks in 2009, which represents an increase of 9.7% from the previous year. Furthermore, IHL projects that spending at self-service kiosks will grow approximately 10% during 2010 and that demand for self-service kiosks should push sales at these terminals to over $1 trillion by 2014.
“At AMI, we continuously strive to innovate and evolve, to meet both the entertainment and payment preferences of today’s consumer,” said A.J. Russo, Creative Director of AMI Entertainment. “Partnering with USAT gives us the ability to expand credit and debit card acceptance through their ePort Connect service in a safe and secure, PCI compliant manner, for both our Megatouch and Rowe product lines.”
USA Technologies continues to benefit from the adoption of its cashless payment technology by vending operators and other owners of unattended, point-of-sale equipment, and the positive results that its technology is achieving for its customers. This exclusive agreement with AMI will enable owners and operators of AMI equipment to benefit from the comprehensive solution that USAT offers, as well as capitalize on the increasing consumer preference for using credit and debit cards for payment at self-service terminals.
About AMI
From touchscreen games and jukeboxes to streaming news and video programming, AMI Entertainment Network provides content-rich entertainment solutions to over 125,000 barrooms and restaurants around the globe. Expanding its digital portfolio to touchscreen PCs and mobile devices, AMI is at the forefront of touchscreen entertainment for any venue or platform. For more information, please visit: www.amientertainment.com
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. The Company has been granted 79 patents and has agreements with Verizon, Visa, Compass, Crane and others. Visit our website at www.usatech.com.
Forward-looking Statements:
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation the financial position, anticipated connections to our network, business strategy and the plans and objectives of the Company’s management for future operations, are forward-looking statements. When used in this release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business, financial market and economic conditions, including but not limited to, the ability of the Company to retain key customers from whom a significant portion of its revenues is derived; whether the Company’s customers continue to operate or commence operating ePorts received under the Jumpstart program or otherwise at levels currently anticipated by the Company; the ability of the Company to compete with its competitors to obtain market share; the ability of the Company to obtain widespread commercial acceptance of it products; whether the recent significant increase in the interchange fees to be charged by Visa and MasterCard for small ticket debit card transactions would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; whether not accepting any debit cards with interchange fees that are higher than the rates provided under the Visa Agreement would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; and whether the Company’s existing or anticipated customers purchase ePort devices in the future at levels currently anticipated by the Company. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, the Company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.