Creative EMV: Unconventional Vending Solutions

Opinions expressed are solely my own and do not represent the views or opinions of my employer or clients.

Until recently, adding an EMV terminal to a vending machine was prohibitively expensive. It required a specialized EMV terminal designed to fit the machine's form factor, compatible with industry communication standards like MDB or Executive. The process involved a complex integration and testing phase with the vending machine manufacturer, often necessitating multiple rounds of bug fixes in both the machine's firmware and the POS control app.

These terminals are built to withstand harsh environments, featuring metal keys and water-resistant designs. The market was(is?) dominated by a well-established "yellow" brand known for its extensive experience and products. As a result, EMV-enabled vending machines were typically reserved for high-priced items (such as tobacco products) in high-traffic areas like airports.

Then came a game-changing idea: using a low-cost handheld EMV terminal without a printer. By enclosing it in a simple plastic box, this solution allows the terminal to be mounted on the front of the vending machine. This innovation significantly reduced costs and made installing EFT/POS terminals on a broader range of vending machines feasible.

The Evolution of Vending Machine Payment Systems

Inside the conversion box, a small power conversion circuit, along with an MDB/Executive to serial converter, interfaces the machine comms bus with the EMV terminal. While this solution isn't as "hardened" or water-resistant as traditional systems, it is sufficient for the majority of use cases.

However, this innovation hasn't eliminated the established players in the vending machine payment niche. This outcome is both surprising and expected. In my opinion, the established companies still hold a significant advantage in software capabilities.

I follow many small businesses that specialize in integrating these terminals into various machines, and they consistently emphasize that software, rather than cost, has always been the primary concern.

The real need is for one or two "universal" applications that technicians can easily configure to interface with relays, pulse counters, and other basic circuits commonly used in vending machines. Even simple class 1 EV chargers, essentially a 220V power socket with a relay and timer circuit, have been EMV-enabled by some of these industry leaders.

Software is the key factor in this landscape. The ease of adoption and configuration, the reliability of the integrated cell modem's signal reception, and the effectiveness of the terminal management system are all crucial elements. These software capabilities continue to give established players a competitive edge in the market.

If I were starting a project in this field, I would develop a streamlined PLC (Programmable Logic Controller) environment integrated directly into the POS application. The PLC industry has a proven track record of addressing programming needs for automation, and its flexible framework can effectively fulfill the requirements of a "universal" POS vending app.

With the new EU EMV mandates related to EV charging, this area is poised to become an intriguing niche!