Burch Food Service Expands Relationship with USA Technologies; Sees One-Year 17% Topline Growth in Transaction Dollars

Moves To Offer Cashless Payments on 100% of Machines That Can Be
Configured For Cashless

MALVERN, Pa.–(BUSINESS WIRE)–$USAT #AndroidPay—USA
Technologies, Inc. (NASDAQ:USAT), a premier payment technology
service provider of integrated cashless and mobile transactions in the
self-service retail market, today announced the initial results of an
expanded agreement with Burch Food Service (Burch), a Canteen franchisee.

Over the last 30 years Burch Food Service has grown to become one of the
country’s premier independently owned foodservice and vending providers,
with operations spanning Missouri, Arkansas, Tennessee, Kentucky and
Illinois. USAT is currently upgrading more than 1,000 of the company’s
machines to its state-of-the-art cashless technology platform and
telemetry services, enabling the company to track the acceptance of cash,
credit/debit cards, and contactless payments, including mobile
wallet payments such as Android Pay and Apple Pay, through its
NFC-capable ePort Connect® cashless payment system. With the deployment
nearly complete, Burch, based on a recent one-month study, reported
cashless usage at 31 percent for existing machines and 26 percent for
new machines. Burch also reported a 17 percent topline growth in
transaction dollars on machines connected to USAT devices between June,
2015 and June, 2016.

“As more consumers demand card and mobile payment capabilities at
point-of-sale, expanding our partnership with USAT to add cashless to
every machine enables us to offer the most superior payment options to
our consumers,” said Steven Burch, President and CEO, Burch Food
Services. “Over the years we have established a reputation for offering
the best products and most innovative solutions to our clients,
providing the best possible consumer experience. Our goal is to ensure
we are doing it in the most effective, efficient way that drives usage
and increases revenues. We are already seeing the benefits of cashless
through increased cashless sales, and we expect this upward trend to
continue as we move toward completing the deployment.”

As part of the agreement, Burch has signed up for USAT’s Premium
Support Service offerings, which provides customers access to a
bundle of best-in-class support services including deployment planning,
project management, installation support, training, tools specific to
the marketing of cashless programs, and marketing support/consultation,
mobile payment and loyalty programs and, in some cases, funding support.

With USAT’s backing, the Burch team took an aggressive and collaborative
approach to the marketing of their newly enhanced program from an
overhaul of the company’s website, to a strategic communication plan for
the new payment options using USAT’s Go Cashless program, an
educational, point-of-sale marketing program designed to help operators
effectively roll out cashless transaction technology. USAT believes
that, through these efforts, Burch was able to cut the adoption curve
for the new technology. Typically it takes 18 months for an unattended
operation to get new equipment to 28 percent cashless. Within five
months of deployment, the average monthly cashless usage at Burch’s
equipment is at 26 percent.

Burch also worked with USAT to enable campus card acceptance at a local
university – adding acceptance for closed-loop campus ID cards running
on the Blackboard system to allow purchases at Burch’s on-campus vending
machines. Now in addition to cash, machines on campus accept campus
cards, credit and debit cards, as well as mobile payments. Following
conversion of those on-campus machines to accept additional payment
methods, and based on early studies, average cashless usage was at 51
percent.

“We believe that Burch has built its reputation and business by focusing
on the needs of its clients and consumers with smart, innovative
solutions, and this deployment is no exception,” said Michael K. Lawlor,
Chief Services Officer, USA Technologies. “From the beginning, we worked
in partnership with Burch to ensure the deployment was strategic, and we
saw very good results on many machines. By using our Go Cashless
marketing program, taking advantage of our premium services offerings
and extending payment solutions to campus cards, Burch is offering its
customers a seamless payment experience. The company is a great example
of how an unattended operation can transition to 100 percent cashless on
machines that can be configured to accept cashless devices the right
way.”

Useful Links:

USA Technologies: https://usatech.com/

Twitter: https://twitter.com/usa_tech

YouTube: https://www.youtube.com/user/USATechnologies

Resource Center: https://usatech.com/resource-center/the-benefits

Sales and Partnership Inquiries:

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

About USAT’s Premium Support Service:

USAT’s Premium Support Service bundles USAT’s best-in-class services to
ensure the most effective deployments of USAT’s cashless technology
through cohesive planning that maximizes returns. Services include
USAT’s Model Market program for planning, project management,
installation support, and marketing support; integration of deployment
planning, installation and performance optimization; access to USAT’s
flagship Knowledge Base data; profitability calculation; and customized
reporting in support of deployment, inventory and DEX project
management. USAT’s Premium Support Service is available to customers
that have made a commitment to connect a significant portion of their
locations to USAT’s service.

About ePort Connect®:

USAT’s ePort Connect service is a PCI-compliant suite of cashless
payment and telemetry services specially tailored to fit the needs of
self-serve retail industries. Designed to be a “one-stop shop,” services
offered through ePort Connect include wireless and merchant account
setup, simplified processing rates, settlement and reconciliation, 24 x
7 customer service and a host of value-added services including mobile
payment, loyalty programs and integrated payment services for
micro-markets and other POS devices.

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 its NFC- ready ePort® G-series, ePort
Mobile™ for customers on the go, ePort® Interactive, 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. For more information, please 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; the possibility that all of the expected benefits
and efficiencies from adoption of the ePort Connect cashless payment
service, including telemetry, cashless and NFC, will not be realized by
all vending operators and on all vending machines or within the expected
time period; whether, and how much, aggressive marketing efforts can cut
the adoption curve for cashless payments; whether average cashless usage
will increase with time on every machine; and whether the ePort cashless
products and services will encourage consumer loyalty and/or drive
recurring or incremental sales. 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.

Contacts

USA Technologies
Media Contact:
ANW Networks
Emily
F. Porro, +1 347-346-3663
emily@anwnetworks.com
or
Investor
Contact:
Blueshirt Group
Michael Bishop, +1 415-217-4968
mike@blueshirtgroup.com