Consumers Respond to Apple Pay Messaging with More Payments

USAT Finds that Apple Pay Messaging Drives 26 Percent Increase in
Overall Transactions; Consumer Usage Increases with Prominent POS
Advertising

MALVERN, Pa.–(BUSINESS WIRE)–#AndroidPay—USA
Technologies, Inc. (NASDAQ:USAT) (“USAT”), a payment technology
provider of cashless and mobile transactions in self-serve retail, today
announced the results of a study testing whether targeted point-of-sale
advertising of Apple Pay acceptance would increase usage of mobile
payments by consumers. According to early results, USAT believes that
smartphone users shown digital advertising at point-of-sale through the
ePort Interactive platform are more apt to pull out their iPhone to make
a purchase, and even spend more during the transaction.

Initial findings by USAT show targeted, digital advertising on USAT’s
ePort Interactive highlighting Apple Pay availability at point- of-sale
resulted in a:

• 26% increase in overall transactions;
• 22% increase in total revenue;
• 12% increase in total average ticket; and
• 89% increase in revenue through contactless purchases, including Apple
  Pay

USA Technologies began implementing NFC technology into its cashless
payments solution approximately 10 years ago and by January 2015, was
able to provide Apple Pay users with 200,000 places to use their wallets
shortly after Apple Pay launched in October 2014. As of June 1, 2016,
USAT now provides consumers with the option to make payments using their
mobile wallet including Apple Pay at more than 300,000 NFC-equipped
machines nationwide, such as vending, single-serve coffee, laundry and
parking pay machines. As part of the study initiated in March 2016, USAT
rolled out digital advertising through its ePort Interactive platform
and digital touch-screen cashless device focusing on Apple Pay on 35
select machines in specific urban locations with a high density of
iPhone users.

“Whether an ad at point-of-sale serves as a simple reminder that a
consumer can use Apple Pay to make a purchase, or educates and informs
them of how easy, secure and private the mobile payments service is,
consumers are responding positively as they buy more and spend
more, more often,” said Maeve McKenna Duska, senior vice president of
marketing and sales, USA Technologies. “Recent research shows that
consumers are becoming more accustomed to using their phones to make
payments, particularly to make smaller purchases where, we believe,
speed and convenience is often a top priority. We believe the unattended
markets we serve will continue to drive Apple Pay use – and that
consumer awareness campaigns at the point-of-sale are key to
accelerating adoption even further.”

A recent study
by Auriemma Consulting Group found that 70% of Apple Pay users say they
are more likely to choose a store that accepts Apple Pay. In addition,
one in five smartphone users are predicted to use mobile payments by
next year, with the total value of mobile payment transactions expected
to grow 210% in 2016 according to eMarketer.

“Cracking the code on consumer engagement is critical for retailers, and
self-serve retailers are no exception,” said Tom Murn, chief executive
officer, The Answer Group, one of the country’s largest vending
companies whose machines were part of the study. “We are thrilled with
the results so far, as it shows that consumers are not only open to
receiving digital advertising at our machines, but are also being
influenced by the information we are providing to them. As Apple Pay’s
footprint continues to grow and more retailers offer mobile payment
options at point-of-sale, the expectation will soon be that we accept
Apple Pay and other mobile wallets on every machine. By integrating
digital advertising and other consumer engagement initiatives, retailers
will be able to move beyond the transaction and be ready and able to
benefit as consumers enjoy the best user experience.”

As part of the test and learn, USAT leveraged equipment installations
that currently displayed traditional, printed Apple Pay decals and ePort
G series devices, swapping the POS hardware with digital touch-screen
hardware connected to its Interactive platform. The test devices were
preloaded with an assortment of five different marketing messages
promoting Apple Pay usage. The test was conducted in New York City and
Lafayette, Louisiana. More cities are slated for study in months to come.

Useful Links:

USA Technologies: https://usatech.com/
Twitter:
https://twitter.com/usa_tech
YouTube:
https://www.youtube.com/watch?v=OR-WnaPDAd4
Resource
Center: https://usatech.com/resource-center/the-benefits
Apple
Pay: http://www.apple.com/apple-pay/

Sales and Partnership Inquiries:

Please contact USA Technologies, Inc. at +1 800.633.0340 or sales@usatech.com.

About ePort Interactive:

The ePort® Interactive is the industry’s most advanced cloud-based
interactive media and content delivery management system. It enables the
delivery of nutritional information, remote refunds, loyalty programs,
and robust, multimedia-marketing campaigns for the unattended and
self-serve retail markets. The platform offers PCI DSS compliant
security, and supports traditional magnetic stripe credit and debit
cards, as well as NFC (Mobile Wallet) payments including Apple Pay and
Android Pay.

About USA Technologies:

USA Technologies, Inc. is a premier payment technology service provider
of integrated cashless and mobile transactions in the self-service
retail market. The company also provides a broad line of cashless
acceptance technologies including The ePort® Interactive, which is the
industry’s most advanced cloud-based interactive media and content
delivery management system, as well as its NFC- ready ePort® G-series,
ePort Mobile™ for customers on the go, and QuickConnect, an API Web
service for developers. USA Technologies has 78 United States and
foreign patents in force; and has agreements with Verizon, Visa, Chase
Paymentech and customers such as Compass, AMI Entertainment and others.
Visit the 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 business
strategy and the plans and objectives of USAT’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 USAT or its management,
identify forward looking statements. Such forward-looking statements are
based on the beliefs of USAT’s management, as well as assumptions made
by and information currently available to USAT’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, the ability of USAT to predict future market conditions
and consumer behavior; whether digital advertising highlighting Apple
Pay would result in increases in overall transactions, revenue and/or
average ticket at all or any particular locations; the ability of USAT
to operate without infringing or violating the intellectual property
rights of others; and whether the ePort Interactive platform will
encourage consumer loyalty and drive recurring or incremental sales or
accelerate adoption. 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, USAT 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.

G-USAT

Contacts

Media Contact for USA Technologies:
ANW Networks
Alicia
V. Nieva-Woodgate, +1-415-515-0866
alicia@anwnetworks.com
or
Melissa
Hourigan, +1-720-872-8807
melissa@anwnetworks.com
or
Investor
Contact:
The Blueshirt Group
Lauren Sloane, +1-415-217-2632
lauren@blueshirtgroup.com