United States

Profile: USA Technologies Inc (USAT.O)

USAT.O on Consolidated Issue listed on NASDAQ Global Market

20 Jan 2017
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USA Technologies, Inc., incorporated on January 16, 1992, provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Company is a provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Company derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.

As of June 30, 2016, the Company had approximately 429,000 connections to its ePort Connect service. The Company's customers range from global food service organizations to small businesses that operate in the self-serve, small ticket retail markets, including beverage and food vending, amusement and arcade machines, smartphones through its ePort Online solution, commercial laundry, tolls, and various other self-serve kiosk applications, as well as equipment developers or manufacturers incorporating the Company's ePort Connect service into their product offerings. The Company's solutions include the ePort Connect service, POS electronic payment devices, payment software able to process magnetic stripe credit and debit cards, contactless credit and debit cards, and near field communication (NFC) equipped mobile phones that allow consumers to make payments with their cell phones.

The Company offers its customers various devices or software to connect their distributed assets. These range from QuickConnect Web service, and encrypted magnetic stripe card readers to its ePort hardware that can be attached to the door of a stand-alone terminal. The Company's network is designed to transmit payment information from its customers' terminals for processing and sales and diagnostic data for storage and reporting to customers. Also, the network, through server-based software applications, provides remote management information, and enables control of the networked device's functionality. Through its network, the Company has the ability to upload software and update devices remotely, such as change protocol functionality, provide software upgrades and change terminal display messages. The client devices are interconnected for the transfer of its customers' data through the Company's ePort Connect network that provides multiple connectivity options, such as phone line, Ethernet and wireless.

The Company's ePort Connect solution provides customers with various services: POS options, which includes the ability to connect to a product line of cashless acceptance devices or software; Card Processing Services, which provides merchant account and terminal identification (ID) set up, pre-negotiated discounted fees on small ticket purchases, and direct electronic funds transfers (EFTs) to its customers' bank accounts for all settled card transactions, as well as compliance with processing regulations; Wireless connectivity, the Company manages the wireless account activation and distribution; Customer/Consumer Services, which includes providing help desk support, repairs and replacement of impaired system solutions; Online Sales Reporting, through the USALive online reporting system, which provides customers with a host of sales and operational data, including information regarding their credit and cash transactions, user configuration, reporting by machine and region, by date range and transaction type, data reports for operations and finance, graphical reporting of sales, and condition monitoring for equipment service, as well as activation of new devices and redeployments, and Deployment Planning, which enables access to services to help operators deploy cashless payment systems and integrated solutions. Its over-the-air update capabilities include automatic over-the-air updates to software, settings and features from its network to its ePort card reader.

The Company offers M2M Telemetry and DEX data transfer, digital exchange (DEX), which communicates information, such as sales, cash in bill validators, coins in coin boxes, and sales of units by selection, pricing and door openings, among others. USA Technologies remotely transfers and pushes DEX data to customers' route management systems through its DEX partner program. Its value-added services enable access to additional services, such as MORE, the Company's loyalty program, two-tier pricing, special promotions, such as its Apple Pay mobile payment for vending customers, as well as a menu of hardware purchasing options, including JumpStart, the Company's terminal-included service option and hardware leasing options through third parties.

The Company's device is ePort, which is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications. Its ePort product facilitates cashless payments by capturing payment information and transmitting it to the Company's network for authorization with the payment system. Additional capabilities of the Company's ePort includes control/access management by authorized users, collection of audit information (date and time of sale and sales amount), diagnostic information of the host equipment, and transmission of this data back to the Company's network for Web-based reporting, or to a compatible remote management system. Its ePort products are available in various modular configurations, and as hardware, software or as an application program interface (API) Web service.

The Company's products include ePort Edge, which is a one-piece design and is intended for those customers requiring a magnetic swipe-only cashless system; ePort G-8, which is a two-piece design that supports magnetic stripe credit/debit cards and contactless cards, and the ePort G8 telemeter is also available as a stand-alone DEX telemetry solution; ePort G-9, which offers all the features of the G-8 plus additional new features that support expanded acceptance options, consumer engagement offerings and diagnostics, and QuickConnect, which is a Web service that allows a client application to interface with the Company's ePort Connect service. QuickConnect replaces ePort software development kit (SDK), which captured the Company's ePort technology in software form for personal computer (PC)-based devices, such as kiosks.

The Company's other forms of ePort technology include eSuds, the Company's solution developed for the commercial laundry industry that enables laundry operators to provide customers cashless transactions through the use of their credit cards, debit cards and other payment mediums, such as student IDs, and ePort Online, which enables customers to use USALive to process cards for the purpose of online billing and recurring charges.

The Company competes with Crane Payment Innovations and Cantaloupe Systems, Inc.

Company Address

USA Technologies Inc

100 Deerfield Ln Ste 140
MALVERN   PA   19355-2100
P: +1610.9890340
F: +1610.9890344

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