MALVERN, Pa.--(BUSINESS WIRE)--USA Technologies, Inc. (NASDAQ: USAT), a leader in wireless, small-ticket cashless transactions, today announced that for the month of March 2011, the Company processed a record 7.5 million small-ticket transactions representing $12.2 million in volume. The increase in the number of transactions processed in March represents a 17% increase over February 2011 and a 93% increase over March 2010. The current processing volume rate is now approaching $150 million in annualized volume, a significant increase from the $100 million annualized run rate announced by the Company in September 2010.
“We believe that this record processing volume is indicative of not only the increased penetration of the ePort cashless payments solution into our target markets, but also the increased adoption of credit and debit cards as the payment vehicle of choice for consumers at unattended small-ticket terminals like vending machines and kiosks,” said Stephen P. Herbert, President and COO of USA Technologies. “As transactions continue to increase with consumer demand, our customers are benefitting from the positive impact that the ePort® cashless payment system and ePort Connect® Service is having on their overall sales and margins. We also believe that the combination of increasing consumer demand and customer success, and the fact that we continue to hit new milestones for the number of transactions processed each month is further evidence that the small-ticket, unattended cashless payments market may be reaching its tipping point.”
The Company also attributes this growth in transactions processed to its successful JumpStart program which will continue into the 2011 calendar year as a result of the recently announced completion of a private placement offering for that purpose. The JumpStart program enables customers to implement the ePort cashless solution with no upfront investment. Under JumpStart, customers can opt for either the ePort G8, which accepts contactless payments, or ePort EDGE, a one-piece cashless reader and controller combo designed for quick installation. The JumpStart package also includes the ePort Connect® service for wireless connectivity, card processing, consumer services, online reporting, and over-the-air machine alerts. In addition, the Company’s Deployment Planning Program uses sales data and consumer trend information to help customers deploy cashless where they are likely to see the greatest rate of success. ePort Connect is a leading payment service for unattended, wireless, cashless transactions, and is PCI Level One compliant for the highest level of security.
Pursuant to its licensing and processing agreements with its customers, the Company earns transaction processing fees equal to a percentage of the dollar volume processed by the Company, which are included as licensing and transaction processing revenues in its statement of operations. The Company’s financial results for the quarter and nine months ended March 31, 2011 will be reported in the Company’s Form 10-Q which the Company anticipates filing with the Securities and Exchange Commission by no later than May 13, 2011.
About USA Technologies:
USA Technologies is a leader in wireless, small ticket cashless, 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 AT&T, Visa, Compass 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 shipped to such customers 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; 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.