Arca webinar kiosk marketplace Cash in Transactions

PETE SENTOWSKIOEM SolutionsARCA

YOU CAN’T

AFFORDTO IGNORE CASH

B R O U G H T T O Y O U B Y :

ARCA designs, manufactures and distributes a wide range of

transaction automation systems, specializing in custom bill

dispensing and bill recycling devices and the software that

controls them.

We have offices in North Carolina, Scotland, Northern Ireland,

India and Russia and we work with customers in over 40

countries.

W I T H S P E C I A L T H A N K S T O :

4

THE PRESENTERS

Pete SentowskiSolutions DevelopmentARCA

Pete has 25 years of OEM experience creating automation solutions for developers and integrators in a variety of market verticals including retail, gaming, parking, car wash and self service kiosks.

Gary StrachanDirector of Operations Turnkey Kiosks

Gary Strachan founded TurnKey Kiosks in 2011 and was instrumental in implementing the first ATM’s in North America. He continues to be heavily involved through TurnKey Kiosks with the Self-Service Industry, and is an expert in Financial Services Kiosks and ATM’s to this day.

Craig KeefnerManagerConnected Technology Solutions (CTS)

Craig has been a solution architect for retail and financial self-service for over 20 years. He is an expert in all types of currency solutions including accept, dispense, and recycling. Currently, he works at CTS developing a variety of kiosks.

5

THE PLAN

to ignore cash.

AFFORD

a) Let’s talk about cash.

b) Learn how cash automation increases the

bottom line.

c) Tips on how to assess the true cost of

cash.

d) Understand the markets that open to

cash-accepting businesses, and the

opportunities that are often missed by

vendors that do not embrace cash.

e) Learn why currency dispensers are vital

and need to be part of your automation

solution.

You can’t

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IS CASH DEAD?

Psst. Have you heard? Cash is dead.

Not so fast, my friend.

7

CASH IN CIRCULATION

0

5

10

15

20

25

30

35

100$50 $20 $10 $5 $2 $1

Volume of Currency in Circulation(Billions of notes, as of December 31 of each year)

Includes Federal Reserve notes, U.S. notes, and currency no longer issued. Excludes

the volume of denominations larger than the $100 note. Source: Federal Reserve

Bank 2013

8

PEOPLE HAVE CHOICES

CASH

CREDIT

DEBIT

PAYMENT OPTIONS AVAILABLE PREPAID

CARDS

MOBILEPAYMENT

CHECKS

9

THE WORLD

Source: Cashless Journal Study, Mastercard, September 2013

Globally around

85%of all retail payment transactions are done with cash.

Which equates to

60%of retail transaction value.

10

CASH FREQUENCY

48%of all U.S. retail transactions are made with cash.

48%

13%

10%

9%

9%

7%4%

Cash

Signature Debit

Credit Card

Check

ACH

PIN Debit

Prepaid

Source: McKinsey U.S. Payments Map, Release Q4-2012

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$0 to $9.99 $10 to $24.99 $25 to $49.99 Over $50

65%

45%

23%

12%

TRANSACTION SIZE MATTERS

Conclusion:If you are buying something that costs less than $10, you are more than likely going to use cash.

50% of all transactions under $50 are in cash.

Source: Federal Reserve System Cash Product Office, 2013.These are unpublished results and are subject to change. It was presented at the 2013 ICCOS Americas conference in Miami.

12

Housing

Financial, professional

Medical, education, personal

General Merchandise

Auto and Vehicle related

Government and non-profit

Entertainment & transportation

Food and personal care

Gifts and transfers

7.5%

16.2%

25.6%

30.1%

32.0%

40.8%

42.8%

50.3%

66.6%

THE PLURALITY OF CASH


13

WHAT’S YOUR AGE DEMOGRAPHIC?

18-24 25-34 35-44 45-54 55-64 65 and older

47%

37%40%

45%

40%36%


Who uses cash?

Conclusion:Young people use cash the most.

14

FIRST OR SECOND

Other5%

Debit Card43%

Credit Card22%

Cash30%


Primary Payment Preference

An interesting side note:

CASHIs the second payment choice for all payment types.

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CASH

• Easily carried

• Widely accepted

• Low risk during periods of financial stress

• Anonymous

• Convenient

• Divisible

• Speedy

• Easily Transferable

• Immediate & Final

• Possible discounts associated with using

• Risk of theft• Risk of loss• Bulky in quantity

+ -

16

WHY HAVE CASH IN A KIOSK?

You never want to turn a customer away or let them be disappointed in your service/product.1

2 More importantly, cash increases your bottom line.

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FROM A RETAIL PERSPECTIVE

LIQUIDITYThere is a cost of funds – By having fewer cash points, you’ll require less funds.

• Reduces the amount of cash on hand by 25-40%.

LOGISTICSMoving money, costs money. Review the # of times you go to the bank. Automating money taking will change banking frequency and the cost associated with it.

• Cash transfer reductions of 60% (reduce 5 cash transit days to 2 days)

OPERATIONSLabor is the largest cost component. Review the number of stations and the personnel required to operate. Enhanced efficiency through mechanization.

• 30 minute a day per person cost – can be reduced by at least 50%

CASH CONTROLControlling money is crucial.

• Shrink is generally 1-3%.

ANALYZE

18

SELF CHECKOUT

19

AUTOMATION

As more and more transactions become automated – consumers are conditioned for ease of use.

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Banking industry is automating cash.• Cash recyclers• Hub-and-spoke model of branch design

BRANCH TRANSFORMATION

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EXAMPLES

• Parking

• Gaming

• Bill Pay

• Self Checkout

• Car Wash

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Cash Usage in Bill Pay Self-Service

- C R A I G K E E F N E R , C T S

23

CASH USAGE IN SELF-SERVICE

Check10%

Credit Card35%Cash

55%

Source: Kiosk Industry Group, 2013.

24

CASH USAGE – CONVENTIONAL CHANNELS

Check65%

Credit Card25%

Cash10%

Source: Kiosk Industry Group, 2013.

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The Unbanked and Automation

- G A R Y S T R A C H A N , T U R N K E Y K I O S K S

26

CLIENTELE & DEFINITIONS

Unbanked – those without an account at a bank or FI use cash to pay for everything

Underserviced – those not properly served by a bank or FI

DeBanked – those who choose not to use a bank or FI because of: trust issues, perceived outrageous service fees, Big Brother monitoring their every move, etc..

Credit Crunch – banks are now more adverse to giving out unsecured lines of credit, such as credit cards. This forces people who don’t qualify to use cash.

37 MILLIONare unbanked in the US

27

SURCHARGES

Surcharges for using a credit/debit card.

Some people will refuse to pay a line item

surcharge to use a credit card and would

then pay cash.

This leads to cash being a good choice to

have for customers who feel this way.

Also, there is a bad sentiment regarding

hidden fees behind credit and debit cards

that is not present with a cash transaction

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AUTOMATION

Automation such as kiosks are prime for a

cash business. Cash acceptors make

virtually no mistakes when grading notes

• No fraud or counterfeit losses

• Always balances

• No settlement wait time

• No risk

• Automation of mundane processes

ATM’s Worldwide

2,200,000

Easy access:

450,000ATM’s in North

America

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TURNKEY KIOSKS

Touch Display

ADA Keypad

Encrypted Pinpad

Card Reader

TITO and Cash In

Cash Dispenser

Bar Code Scanner

Check Reader

Card Printer/Encoder

Biometric Scanner

Thermal Printer

Pete SentowskiARCA

E [email protected] T 919.442.2533

Gary StrachanTurnkey Kiosks

E [email protected] 602.606.7771

Craig KeefnerConnected Technology Solutions (CTS)

E [email protected] 303.522.0198www.linkedin.com/in/kiosk

CONTACT INFO

Q U E S T I O N S ?

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