Cashless Payment Systems

And
Canteen Management
Solutions




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 thats the takings that dont 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
Its quicker, maximised break times (reduced queues)
No more searching for change, you always have loose change
only its 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 wont
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)
Its 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 Case
Business 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 0.12 172,800
Vending
Machines 10 6,500
Capped 1,000 4 960,000 0.12 115,200 Annual Maintenance 975
Annual 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 Cashless
Employees
Free Vend 1,000 6 1,440,000 0.12 172,800
Employees
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 1,995
Annual Cost
Saving 64,800 Annual Cost 5 years 3,295
Recurring Annual Saving 61,505
So how do we sell a Cashless System?

Its 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 its their own banking system, with its own currency

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

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