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The ROI of Cashless Gaming: Are Card Readers Worth the Investment?

Adopting cashless payment systems in the amusement and gaming industry offers several advantages. Cashless transactions, averaging $6.13 per transaction compared to $0.81 for cash, can significantly boost revenue. The initial investment in card readers, which includes hardware, software, training, and marketing, is quickly offset by a short payback period.

4 minute read

Are you leaving money on the table by not going cashless? In the fast-paced world of amusement & gaming, the shift to cashless payments is more than just a trend—it’s a necessity. Did you know that consumers using cashless methods tend to spend more, with an average ticket price of $6.13 for cashless transactions compared to just $0.81 for cash transactions? This higher spending can lead to a substantial revenue uplift. Implementing cashless payment systems can result in long-term savings by reducing costs associated with cash/coins, tokens, labor, and maintenance.

If we do a little quick math, it takes just 60-70 transactions (depending on the price of the cashless device) to pay off a card reader.

These systems also enhance customer satisfaction by providing a more convenient and seamless gaming experience — driving higher and more frequent transactions. Given these benefits, installing card readers on gaming machines is often a worthwhile investment. Let’s dive into the details.

Fast Facts

  • Cashless transactions lead to a significant increase in spending per transaction, averaging $6.13 compared to $0.81 for cash transactions.
  • Transitioning to cashless systems can result in long-term savings through reduced labor expenses, less frequent coin removal, and lower maintenance costs.
  • Cashless systems improve theft control and reporting, enhancing overall operational efficiency and security.
  • Real-time insights from cashless systems help operators make better decisions, optimize operations, and tailor offerings based on customer preferences and behavior.

Costs of Installing Card Readers

  1. Initial Installation Costs:

    • The primary cost associated with installing card readers is the initial investment in the hardware and software. This includes the cost of the card readers themselves, the cashless payment system, and any necessary integration with existing systems.

  2. Training and Support:

    • Training staff to use the new system and providing ongoing support can add to the initial costs. Ensuring that employees are well-versed in the new technology is crucial for a smooth transition.

  3. Marketing and Customer Education:

    • Promoting the new cashless payment system to customers may require additional marketing efforts. Educating customers on the benefits and how to use the system (like adding instruction signage or stickers) can help drive adoption.
$M
Total sales at amusement & gaming machines.
$
Average cashless transaction, compared to $0.81 cash.
%
of amusement & gaming machines sales are cashle

Benefits of Installing Card Readers

  1. Revenue Uplift:

    • Higher Spending Per Transaction: Card readers enable cashless payments, which typically result in higher spending per transaction. Customers are more likely to spend more when they aren’t counting coins or bills.
    • Seamless Gaming Experience: A cashless system provides a seamless and disruption-free gaming experience, allowing customers to play more without interruptions. Card readers like the Engage Pulse offer ladder pricing, which allows consumers to pay for multiple plays in one transaction. This can mean more time spent on the machines – which leads to more revenue.

  2. Long-Term Savings:

    • Lower Labor Expenses: The need for frequent coin removal and maintenance of associated systems is reduced, leading to lower labor expenses.
    • Theft Control and Improved Reporting: Cashless systems can help control theft and improve reporting, leading to more efficient operations and higher profitability.

  3. Enhanced Customer Satisfaction and Operational Efficiency:

    • Convenience and Security: Card readers provide a more convenient and secure payment method, enhancing customer satisfaction. This can encourage customers to spend more time and money on the machines.
    • Real-Time Insights: Real-time sales performance and device status monitoring offer valuable insights, enabling better decision-making and optimization of operations. Operators can identify popular games, peak hours, and customer preferences, which can inform tailored offerings and marketing strategies.

Engage Pulse on ladder pricing screen.

Engage Pulse Card Reader

Grow sales on your coin-operated machines with a modern touchscreen solution designed to increase sales up to 7x.

  • Accept nearly all forms of digital payments
  • Ladder pricing enables multiple plays per transaction
  • All-in-one card reader and telemeter
Get the details

black card reader and telemeter

G11 Pulse Kit

Update your coin-operated massage chairs with digital payment capabilities.

  • Accept nearly all forms of digital payments
  • Process payments quickly and securely
  • Broaden your potential customer base
Get the details

While the exact financial ROI of installing card readers on gaming machines can vary, the benefits are undeniable. The Engage Pulse and G11 Pulse card readers, for instance, offer robust solutions that can significantly enhance your gaming operations. These card readers not only facilitate seamless cashless transactions but also provide real-time insights and improved security, which are crucial for modern gaming environments.

The transition to cashless payments is not just a technological upgrade; it’s a strategic move that can transform your business. For operators looking to stay ahead of the curve and maximize profitability, the installation of card readers like the Engage Pulse and G11 Pulse is a smart and necessary investment.

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