USA Technologies, Inc. (NASDAQ: USAT), a leader of wireless, cashless payment and M2M telemetry solutions for self-serve, small-ticket retailing industries, announced that effective November 2011, the company has extended a ten-year relationship for an additional three-years with Elavon, a wholly-owned subsidiary of U.S. Bancorp (NYSE: USB), and a leading global payments provider. Through the delivery of world-class service and competitive pricing, the agreement provides USA Technologies with Elavon’s support to continue with its growth plans.
“We’re very pleased to formalize this new agreement with Elavon, and enter our second decade of doing business together,” said David M. DeMedio, Chief Financial Officer of USA Technologies, Inc. “Our work with Elavon and their commitment to our growth strategy puts us in a position to meet both our long and short-term objectives. We believe that it is also further validation of USA Technologies’ position as a leader in wireless, cashless payments for the self-serve, small-ticket industries.”
“Continuing our relationship with USA Technologies provides Elavon with an opportunity to drive commerce and growth for the small ticket market that USA Technologies represents,” said Tom Boyer, President of Elavon North America. “We are enthusiastic to align with such a well-respected market leader.”
With this new agreement, USA Technologies has reached another milestone along the anticipated path towards profitability consistent with the new priorities the Company recently articulated in a letter to its shareholders. With a safe, secure card-processing provider, USA Technologies has a solid foundation that will support both improvements in functionality as well as a continued increase in customers, connections and resulting transactions processed on the Company’s ePort Connect services.
“This agreement with Elavon is not only important from a business standpoint—helping us towards our goal of profitability and ensuring our services remain positioned for continued growth—but it’s important because it further underlines our commitment to our customers and the consumers who utilize our service,” concluded DeMedio. “By working with a world-class business partner like Elavon, we increase our value to our customers by providing them the best possible service at competitive rates, and ensuring that their customers have a seamless, enjoyable payment transaction at the point of sale.”
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. The Company has been granted 79 patents and has agreements with Verizon, Visa, Compass, Crane and others. Visit our website at www.usatech.com.
About Elavon (www.elavon.com):
Elavon’s Global Acquiring Solutions organization is a part of U.S. Bancorp (NYSE: USB). Elavon provides end-to-end payment processing services to more than 1.2 million merchants in the United States, Europe, Mexico, Brazil, Canada and Puerto Rico. Solutions include credit and debit card processing, electronic check services, gift cards, multi-currency support, and cross-border acquiring. Elavon’s industry leading solutions meet the needs of merchants in specialized markets including small business, retail, hospitality/T&E, health care, education and the public sector and are marketed through multiple alliance partner channels including financial institutions, trade associations and ISOs.
“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 financial position, achieving profitability, business strategy and the plans and objectives of the Company’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 the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’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 the Company to generate sufficient sales to generate operating profits, or conduct operations at a profit; the ability of the Company to retain key customers from whom a significant portion of its revenues is derived; whether the Company’s customers continue to operate or commence operating ePorts received under the Jumpstart program or otherwise at levels currently anticipated by the Company; the ability of the Company to compete with its competitors to obtain market share; whether the Company’s customers continue to utilize the Company’s transaction processing and related services, as our customer agreements are generally cancelable by the customer on thirty to sixty days’ notice; whether the recent significant increase in the interchange fees to be charged by Visa and MasterCard for small ticket debit card transactions would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; whether not accepting any MasterCard debit cards effective mid-November 2011 would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; and whether the Company’s existing or anticipated customers purchase ePort devices in the future at levels currently anticipated by the Company. 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, the Company 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.