Inside Cantaloupe’s Big Bet on Frictionless Retail for the TikTok Generation

For decades, brick-and-mortar stores, loyalty programs and flashy eCommerce sites were sufficient to engage consumers.

However, for rising generations like Generation Z (born between 1997 and 2012) and Generation Alpha (born in 2013 and beyond), traditional models no longer resonate. These digital natives are not just tech-savvy; they are tech-native. Raised with smartphones, streaming and algorithm-driven content, they expect seamless, hyper-personalized and self-directed experiences in every aspect of life — particularly when it comes to payments and commerce.

“These are people who live their lives on the smartphone,” Cantaloupe CEO Ravi Venkatesan told PYMNTS. “That is their point of sale, that is their shopping cart … and that’s where they want to transact.”

As Gen Z and Gen Alpha come of age, they won’t just gravitate to platforms that let them swipe, tap or scan. They’ll choose partners who see them, know them and protect them.

To their benefit, unattended retail that uses mobile technology, artificial intelligence, biometrics and connected systems to deliver frictionless shopping experiences is emerging. This isn’t just about convenience. It’s about speaking the native language of tomorrow’s consumer.

“It’s about how frictionless do you make it,” Venkatesan said. “Fast, cheap, convenient and secure.”

The Store of the Future Has No Cashier

The generational shift away from cash has been seismic, and in the shrinking space left behind, a growing variety of digital alternatives have emerged. Campus cards, employee badges, loyalty programs and even biometrics are becoming the payment methods of choice — each offering opportunities for personalization and, critically, loyalty.

Cantaloupe’s own embedded finance capabilities blur the line between infrastructure and experience. Its connected self-checkout kiosks, mobile ordering systems and cloud-based point-of-sale platforms are as much about fluid design as financial technology.

“In a kiosk-based marketplace … a user can come in and use their fingerprint to authenticate and then just make purchases,” Venkatesan said. “It’s tied to an account … sometimes it’s payroll deducted.”

In one pilot, facial recognition is even used to dispense age-restricted items like adult beverages, he said.

One key benefit of eliminating physical friction is its capacity to enhance emotional loyalty.

“Once you have that information stored away … you can do hyper-personalization on one side and clever campaigns and rewards on the other,” Venkatesan said.

But payments alone are not the story. Unattended retail innovations are increasingly expanding retail access to previously underserved communities.

“Even in this modern day and age, we [support] a lot of customers who serve what are called food deserts,” Venkatesan said, citing an example in rural Alabama where the nearest food store is 4 miles away.

Cantaloupe’s own solution? Smart Stores — modular, AI-powered mini-retail environments that can live almost anywhere, including inside apartment lobbies, college dorms or industrial break rooms. With 24/7 availability, locked glass doors and AI-powered inventory detection, Smart Stores not only provide access but do so securely and efficiently.

“In some places, you just tap your card, and it unlocks… and then the detection of what products you took is done using AI, using cameras,” Venkatesan said.

While comparisons to Amazon Go are inevitable, Cantaloupe’s own Smart Aisle offers a lighter, more scalable alternative. A tablet interface confirms purchases in real time, and consumers simply close the door and walk away.

Frictionless Payments Will Power the Future

One of the most transformative technologies underpinning Cantaloupe’s strategy is computer vision — specifically, how it eliminates scanning altogether.

“Goodbye barcodes and goodbye RFIDs,” Venkatesan said. “Now the camera has eyes, and the AI gives it intelligence.”

By removing the need to scan each item, Cantaloupe not only accelerates checkout but also enhances accessibility for high-volume shoppers. This is especially relevant in a post-pandemic world, where in-store shopping can be done by professional pickers for services like Instacart.

“These people are going in and buying products for $300 to $400,” Venkatesan said. “They want to get in and out as fast as they can, and the checkout is the last place they want to be spending their precious time.”

Cantaloupe’s camera-powered systems offer a smooth, scan-free experience that feels as futuristic as it is frictionless, he said. In 2023, Cantaloupe entered the stadium and entertainment space through an acquisition, expanding its presence with partners like the Miami Marlins, Washington Commanders and San Jose Earthquakes.

“The problem we are solving … [people] don’t want to miss a play just because it took them 30 minutes to go get a hot dog,” Venkatesan said.

The solution? Mobile-first ordering systems that let users scan a QR code, order from their seat and receive food without leaving the action.

For Gen Z and Gen Alpha, it’s less a luxury than an expectation.

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