USA Technologies (USAT) has teamed up with NFC platform provider Isis to offer a mobile loyalty program. Customers who use an Isis NFC phone to make payments at vending machines will get their fifth purchase free.

"The USAT mobile payment and loyalty program will integrate USAT's installed base of over 100,000 NFC-enabled cashless payment terminals with Isis' SmartTap mobile commerce technology, for rewards acceptance and redemption," the cashless vending machine specialist explains.

"Customers would be eligible to receive free products from vending operators based upon loyalty rewards earned by using the Isis Mobile Wallet to pay for a purchase at a qualifying terminal."

"Loyalty programs can help drive traffic, repeat business and brand loyalty," says USAT. "Since US vending has traditionally been a cash-based industry, consumer engagement tools such as loyalty programs that market directly to the consumer were largely impossible before."

Vending machine operators preparing to deploy the new solution include Salt Lake City-based PGI Services.

"We took advantage of USAT's mobile payment launch with Isis in our city because we know the demographics of our consumers, particularly in areas such as the Salt Lake City airport and business centers, are increasingly smart-phone oriented," explains Mike Brown, president of PGI.

"We are now over 80 percent cashless and can't wait to incorporate the consumer engagement programs enabled by mobile payment to leverage our cashless platform even further. In my view, anything we can do to make it easier and rewarding for customers to purchase our products is smart business."

The move follows a deal struck by USAT and Isis in October 2012. Under the terms of the deal, Isis is paying USAT a subsidy for converting up to 7,500 vending machines to accept Isis payments in its Austin, Texas and Salt Lake City, Utah test markets.