News 2000
Vending becomes upwardly mobile
19/09/2000
Virgin Mobile spearheads new development towards cashless society
Virgin Mobile this week unveils the UK's first cellular vending machine. By turning a mobile phone into a virtual wallet, customers will be able to buy a can of Virgin Cola without the use of coins.
A prototype 'coinless' machine, built in association with Ericsson - one of the world's leading mobile businesses - will be on show at this week's Live 2000 exhibition at London's Earls Court. After the show, the machine will be put into public use in one of Virgin's London Megastores.
The exciting 'Dial and Drink' technology will make buying a can of drink or packet of crisps as easy as phoning a friend. To make a purchase, mobile phone customers simply call a number unique to the machine; the can is dispensed to the user and the cost is then debited to the phone account.
Technology behind the first 'coinless' machine could be used in any number of future vending applications. In theory, 'bigger ticket' items, such as CDs and videos, could also be sold in secure areas. Future machines will also be accessible to any mobile user on any network - with Virgin Mobile's SIM being at the heart of the machinery, alongside Ericsson's cellular hardware.
Technological advancements are also good news for the vending industry itself. The industry currently turns over in excess of £1.3bn a year - and this figure is expected to double by 2002. Yet, approximately 13% of turnover is lost through coin fraud; 9% lost in errors. A wireless system could provide a solution to these losses and even cut the need for machines to be emptied of coins on a regular basis.
The partnership with Ericsson is another example of Virgin Mobile's innovation and commitment to the future of m-commerce. Earlier this year, the company added the Virgin Shop to its Xtras services, where customers buying via a mobile could expect to save up to 50% on electrical goods such as televisions and freezers.
Comments Steven Day, corporate affairs director at Virgin Mobile: "These days, people are just as, if not, more than likely to have a mobile in their pockets, rather than loose change. Technological developments like this will make it easier for the consumer. Coinless vending is the next logical stage in the march towards a cashless society and customers will get more choice - both in what they can buy from a machine and how they pay for it."
Dave Kirk, head of wireless business automation at Ericsson, said: "This is a real commercial mobile application which the man in the street can relate to and use. More than 30 million people have a mobile phone - an ideal medium for cashless micro payments; and in two years' time, vending with a mobile will be perfectly normal. Today's development will start that cultural shift and help gain consumer's trust in m-commerce."
He adds: "The vending industry will also benefit massively. This technology will virtually eradicate industry losses through fraud and errors. It will also enable remote management and fault diagnostics, as well as capture of sales data. There is no doubt that this will give entrepreneurs, especially outside the food and drink industry, a chance to enhance the industry."
Live 2000 is taking place at Earl's Court between the 21st and 24th September.
