The Next Frontier of Retail: Contactless Kiosks and Robots

Vending machines are possibly the most common and identifiable examples of unattended retail. Over the last few years, they’ve gotten a surprising technological glow-up – the kinds of upgrades one might have pictured in The Jetsons or Blade Runner. And these are just the tip of the iceberg for unattended retail. As technology evolves, so too does the potential for reshaping how consumers interact with products and services and engage with the brands and companies they love, observes Achiya Fried of Finaro.

In the years since the invention of the first coin-operated vending machine in 1884Opens a new window , these low-maintenance, bulky apparatuses have been coupled with new advances such as cashless payment mechanisms, IoT systems, as well as AI (artificial intelligence) and ML (machine learning) algorithms – innovations granting retailers alternative ways to drive revenue and keep consumers happy amid fluctuating market demands.

This new era of unattended commerce has spawned a dynamic landscape of interactive and contactless kiosks, self-service stations, and next-gen vending machines capable of dispensing cupcakesOpens a new window and even making pizza from scratchOpens a new window . These innovations cater to modern consumers who value convenience and efficiency in their shopping experiences.

Better Tech, at the Drop of a Dime

For much of the vending machine’s history, coins or bills were the only acceptable currencies. It wasn’t until the mid-2000s that such machines were equipped with credit card scanners. 

Since then, unattended retail point-of-sale (POS) systems have grown far more sophisticated. Vending operators are now enabling more and more checkout innovations to accommodate consumers’ ever-changing and expanding payment preferences – such as the over one billion peopleOpens a new window who use mobile or digital wallet payment options today. 

Digitization has also prompted a rise in unattended brick-and-mortar stores and kiosks equipped with various scan-and-go technologies. These are proving to be very appealing as 77%Opens a new window of shoppers are more open to shopping at these stores because of how quickly and seamlessly they can complete their shopping errands. This trend underlines the value and importance of adaptable, user-friendly technologies in shaping and adapting to shifting consumer behaviors.

See More: How AI Is Refactoring Finance, Manufacturing & Healthcare

Inventory Expanded

Not only did the proliferation of eligible payment solutions improve customers’ unattended retail experience, but it also allowed vending operators to vastly expand their product inventory to include items worth more than peoples’ average pocket change. This expansion has transformed vending machines from mere snack dispensers into versatile stores in compact form. 

Alongside vending machines packed with the familiar on-the-go essentials like non-perishable snacks and beverages are now those that supply fresh food, cosmetics, personal care items, consumer electronics, and much more. 

Dutch vending chain FEBOOpens a new window , for example, is known in the Netherlands for the fresh, tasty fried foods their machines dispense. Japanese clothing brand UniqloOpens a new window has also joined the vending trend, selling their most popular apparel items in branded self-service vending machines situated across airports and shopping malls. During the pandemic, vending machines were even retrofitted to supply personal protection such as face masks, hand sanitizer, gloves, and so on.

The Next Frontier of Tech

Just as it was in 1884 when vending machines first appeared on the scene, the beating heart of unattended retail continues to be the disruptive technologies driving maximum convenience.

Today, that convenience is facilitated by a collection of sensors, cameras, microphones, and touchscreen displays – and sometimes even AI and ML algorithms. Equipped with such IoT systems, ordinary vending machines are now imbued with high-level connectivity. With these upgrades, merchants can track a machine’s telemetric data, such as the quantity of products purchased and the times of purchases – information that indicates customer preferences and helps operators adjust inventory in real-time.

So, what’s the next disruption to the market? While companies continue situating vending machines in more non-traditional locations for consumer convenience, it’s not farfetched to envision larger-scale vending and automated on-the-go storefronts and kiosks taking over certain spaces entirely – such as unattended convenience stores, kiosks, and smart vending machines in train stations, airports, and plaza strips. Before long, tech-powered self-service stations in dense, high-foot-trafficked, urban locations – where fast and convenient shopping is necessary for consumers on the move – are likely to become the norm.

When it comes to the proliferation and advancement of unattended retail opportunities, advanced payments are a significant driving force. Changing consumer payment preferences, particularly in the wake of the COVID-19 pandemic, has seen legacy payment methods like cash and cards give way to more disruptive (aka contactless) payment solutions.

More and more, consumers are leaving their wallets at home, opting instead to utilize mobile payment methods, such as digital wallets and apps, to make purchases using their smartphones or smart watches. The integration of contactless and tap-and-go payments, as well as biometric payments – cardless methods that authenticate transactions based on fingerprints, facial recognition, and even voice recognition – are playing a significant role in streamlining micro-markets and the unattended retail experience as a whole.

However, this is not unique to retail. Other industries, such as the automotive industry, are tapping into unattended kiosks and contactless payment technologies. Drivers today are already benefiting from the convenience of these solutions at gas and EV charging stations where ‘pay-at-pump’ systems allow them to fill up or charge their vehicles without interacting with a station attendant or even walking away from their vehicles to pay. And, as payment and automotive technology advances, we are nearing the point where vehicles themselves will become the payment method, allowing drivers to pay for gas or charging, tolls roads, fines, and even groceries from the comfort of their vehicles.

Augmented reality is another area of disruptive tech that, in fact, is already being testedOpens a new window within the apparel industry, enabling customers to virtually “try on” garments based on their body dimensions. For instance, in 2017, Gap announced a partnership with Google to develop an augmented reality-enabled shopping app equipped with a digital mannequin, allowing users to try out different sizes before making a purchase.

As this technology improves, it could easily be applied to apparel vending machines. Consumers could simply scroll through the available items, see how they look on them, and make a purchase right there and then – all without ever having to enter an actual store, interact with a sales associate, or rummage through their wallets.

Retail Remade

Unattended retail has come a long way – from candy bars, soda bottles, and chips to freshly made meals, fashion items, pharmaceuticals, and much more. The innovative technology used to facilitate and streamline vending transactions has brought forth numerous benefits for consumers and business owners alike, unlocking new levels of accessibility and convenience for consumers and introducing new revenue opportunities and markets for businesses.

As technology continues to spark more convenience and product inventory diversifies, one thing is clear; unattended retail is well on its way to fundamentally changing the entire shopping experience.

How do you think the retail industry will transform in the next decade? Share your predictions with us on FacebookOpens a new window , XOpens a new window , and LinkedInOpens a new window . We’d love to hear from you!

Image Source: Shutterstock

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