40 Years in the Vending Industry – An Interview with Thomas Steiner
Published in VendingSpiegel
Thomas Steiner has been working with payment systems and telemetry solutions for the vending industry for 40 years. In this exclusive interview, SECO’s Vertical Sales Manager Vending talks about the importance of connected and intelligent vending machines today and in the future, as well as the role of artificial intelligence (AI) for the industry.
1. Mr. Steiner, you have been in the vending industry for 40 years. Has the sector fundamentally changed in terms of hardware and software for payment systems and telemetry during this time? Absolutely. When I started in 1985, it was just me, a toolbox, and a vending machine that refused to cooperate. Back then, we had purely mechanical coin slots. I have witnessed the entire evolution – from coin-operated machines to the first electric cigarette machines in Europe, all the way to today’s contactless NFC payments and fully networked systems. What was once hardware-based is now largely software-driven. Telemetry was simply non-existent at the time – today, operators can remotely monitor and optimize their entire fleet.
2. How does the German vending market compare internationally when it comes to payment systems and telemetry? Thanks to my international career, with professional experience in the UK, USA, and the Netherlands, I have gained a solid overview of various markets. When comparing figures and developments, it’s clear: Germany is in a strong position. According to a BDV study, we are one of Europe’s most important vending markets, with €4.62 billion in revenue and an impressive 18.7% growth in 2024. However, in terms of machine density, Germany ranks only mid-field, leaving room for improvement. In contactless payments, we have made huge progress in recent years. A 2024 Mastercard study shows that 69% of Germans now use contactless payments – roughly on par with the USA. However, in terms of frequency of use, there’s still potential for growth – other European markets such as the Netherlands lead here, with 94% of all card payments being contactless.What particularly distinguishes Germany are our high safety standards and strict regulatory requirements. Germany has one of Europe’s strictest youth protection systems, and our developments in age verification have become internationally pioneering.When it comes to telemetry adoption, European markets still face challenges – while North America leads with 2.3 million connected machines (according to Berg Insight), Europe stands at 1.8 million. This is due to a fragmented market structure with many small operators. However, in smart vending machines, Germany leads Europe – with a 23.6% market share in 2024, we hold the top position for intelligent vending machines in Europe.
3. Is the vending industry already fully exploiting the digital possibilities for machines and back-office operations? No, far from it. We are only scratching the surface. Many operators don’t even use basic telemetry features for stock optimization. Displays are often used solely for product selection, even though they have huge potential as advertising media. Vending machines offer a unique opportunity: they hold a person’s attention for several seconds or even minutes. In this scenario, the display can become a powerful advertising tool – imagine that while someone is selecting their drink, personalized ads for nearby restaurants or on-site special offers are shown. This allows operators to unlock additional revenue streams. Most machines still operate in isolation rather than as connected, intelligent systems.
4. Where do you see the greatest untapped potential for digital technologies in vending? The biggest potential lies in fully integrating mobile-first approaches and app integration. Predictive analytics for stock management is still underdeveloped. We can already extract far more from available data: Which products sell best at which times of day? What customer preferences exist at each location? With solutions like our Clea-Vend system, operators can gain these insights – but many are not yet leveraging them.There is also the opportunity to better analyze customer behavior in order to create personalized offers. Transaction data doesn’t just tell us which payment methods are preferred, but also reveals regional differences in payment habits, average spend, and purchase patterns. This enables location-specific product optimization. A machine in a gym needs a different product mix than one in an office building. A vending machine should not just be a selling device – it should be an intelligent interface that anticipates customer needs and delivers an experience.
5. What role does artificial intelligence currently play in payment systems and telemetry? Frankly, AI currently plays almost no role in the vending industry – neither in payment systems nor in telemetry. Payment systems are dominated by traditional contactless technologies such as NFC, card payment, and mobile payments. AI-driven features like facial recognition payments are still futuristic. Telemetry is similar – most operators use, at best, basic telemetry: stock monitoring, sales data, simple alerts. This is important digitalization, but not yet AI.While everyone is talking about AI, the vending industry is still working on becoming fully digital. The big potential is there, and in five to ten years, this will change. But today? We are still focused on the basics: moving from coins to cards, from manual to digital stock management. The AI revolution is yet to come.
6. And how important will AI be for vending in the future? AI-driven vending machines will define the next era. According to a Technavio report, the market for intelligent vending machines is expected to grow by USD 35.16 billion from 2025 to 2029. This is not gradual change – it’s a revolution. I believe AI will fundamentally transform three areas:Customer Interaction – AI-powered consumer analytics, facial recognition for payments, and digital wallet compatibility. Imagine a machine that detects a customer’s mood from their facial expression and suggests products based on their purchase history.Stock Management – AI systems will not only predict product needs but also automatically reorder from suppliers and adjust prices in real time, leading to fewer outages, optimal inventory costs, and maximum availability.Maintenance – AI-powered predictive maintenance can identify potential issues before they become major problems.The next decade will determine who is ready to transform from a traditional vending operator into a data-driven company. AI will turn vending machines into intelligent retail platforms – those who miss the opportunity will be left behind.
7. Which technologies do you expect to be standard in vending machines by 2030? It’s a tough prediction, as the industry is in a transitional phase. After 40 years of experience, I’ve learned that technology forecasts are often more optimistic than reality. I don’t think we’ll still be talking about contact-based payments in 2030. Mobile-first and app-integrated systems will be standard. Fully digital payment solutions, real-time connectivity, and energy-efficient designs are a given.When it comes to AI, I’m more cautious. Will intelligent machines be standard everywhere by 2030? I think we’ll see more basic AI functions like improved stock forecasting and automatic alerts – not science-fiction scenarios.Overall, we will likely still see a mixed landscape in 2030 – modern smart machines at premium locations, traditional machines with digital upgrades in others. The industry is more conservative than many forecasts suggest. What matters is making the right strategic moves early.
8. How is SECO positioning itself as a partner for operators? SECO is more than a technology supplier – we are a strategic partner for the digital transformation of the vending industry. As a technology company with over 800 employees, nine Ramp;D centers, and €185 million in revenue, we have the resources and expertise to support operators through this transition.Our vision is a “digital, sustainable, intelligent future” – and that’s exactly what we bring to vending. With integrated hardware-software solutions such as KarL4 for secure payments and age verification, along with our IoT-AI platforms, we enable operators to transform their machines from simple vending devices into intelligent edge computing systems.What sets us apart is our holistic approach – from the initial design phase to industrialization and market launch, we accompany our customers every step of the way. With over 450 customers worldwide and more than one million devices produced annually, we have the industrial capacity to scale.Our values – innovation, commitment, and human-centered design – are reflected in everything we do. The vending machine is not the product – the experience is. And nothing we create comes from a single person alone – it’s teamwork between customers, partners, and our development teams that drives us forward.
Read the full interview on VendingSpiegel: https://www.vendingspiegel.de/epaper_vs/