Cantaloupe Profile
Cantaloupe, Inc. operates as a global technology leader powering self-service commerce. Cantaloupe is enabling businesses of all sizes to provide self-service experiences for consumers. The company's vertically integrated solutions fuel growth by offering micro-payments processing, enterprise cloud software, IoT technology, as well as kiosk and POS innovations. Cantaloupe’s end-to-end platform increases consumer engagement and sales revenue through digital payments, consumer promotions and loyalty programs, while providing business owners increased profitability by leveraging software to drive efficiencies across an entire operation. Cantaloupe’s solutions are used by a wide variety of consumer services in North America, Latin America, Europe, and Australia, including vending machines, micro markets and smart retail, laundromats, metered parking terminals, amusement and entertainment venues, IoT services and more.
The company’s revenue streams consist of subscription, transaction processing and equipment sales. The company derives the majority of its revenues from subscription and transaction fees resulting from transactions on, as well as connectivity and telemetry services provided by, its cashless devices, Seed software, Cantaloupe Go software, and its API services used via its Quick Connect product. These services include digital payment processing, loyalty programs, inventory management, route logistics optimization, warehouse and accounting management, intelligent merchandising, and more. Devices and point-of-sale (POS) terminals operating on the company’s platform and using its services include those resulting from the sale, finance or a monthly bundled subscription (Cantaloupe ONE program) of its POS electronic payment devices, telemetry devices or certified payment software or the servicing of similar third-party installed POS terminals or telemetry devices. The majority of customers pay a monthly service fee plus a blended percentage rate on transaction volumes. Transaction fees on volumes processed through the company’s payment devices, are the most significant driver of the company’s revenues.
The company’s customers range from global food service organizations to small businesses that operate primarily in self-serve retail markets, including food and beverage vending, micro-markets, amusement and arcade machines, commercial laundry, air/vacuum, car wash, and various other self-serve kiosk applications, as well as equipment developers or manufacturers who incorporate its hardware, software, and services into their product offerings.
Solution
The company continues to transform self-service commerce by offering one integrated solution for payments processing, logistics, and back-office management. The company’s platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising, and customer loyalty programs, while providing retailers with control and visibility over their operations and inventory. As a result, customers can run their businesses more proactively, predictably, and competitively. The company offers customers several different ways to connect and manage their distributed assets. These range from the company’s cashless hardware, self-checkout kiosks, Seed platform, Cantaloupe Go platform, and API services via Quick Connect. The company’s platform is designed to not only transmit payment information from its customers’ terminal or locations for payment processing, it also processes sales and performance data to optimize assets and generate reports within the Seed and Cantaloupe Go platforms, as well as third-party software solutions, providing greater control and visibility of its customers' business. Through its platform, the company enables customers to easily manage assets, make changes, and push updates all remotely, ensuring they run as efficiently as possible.
Products and Services
The company’s hardware includes Cantaloupe card readers, its integrated payment device, as well as Cantaloupe Go POS kiosks, its wide range of POS terminals, which are both deployed in self-service, applications, such as vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and others.
Cantaloupe's cashless devices, which come in a variety of styles, facilitate digital payments by capturing payment information and transmitting it to the company’s platform for authorization with the payment system (e.g., credit card processors). Additionally, the company’s devices send sales data into the Seed platform for advanced reporting, including remote asset management. Cantaloupe's cashless devices have earned a reputation for quality, reliability, and innovation.
The company’s Cantaloupe Go product line provides a variety of self-checkout kiosks, which range from tablet-based POS terminals, to feature-rich 46 inches kiosk screens that are equipped with ADA height compliant and audio assist features for the visually impaired. Cantaloupe Go also enables complete management of an operator’s business by integrating into the Seed platform for one central place to manage inventory, warehouse processes, driver accountability and overall profit and loss reporting.
The company’s hardware is available for customers through purchase, finance, or subscription with its new Cantaloupe ONE Platform.
Cantaloupe's G11 Cashless Kit is a 4G LTE digital payment device that enables faster processing and enhanced functionality for payment and consumer engagement applications. It supports functionality that requires higher speeds and large data loads, operates on the AT&T and Verizon networks, and has built-in NFC (contactless) support for mobile payments, traditional credit and debit cards, in addition to EMV- contactless.
Cantaloupe's G11 Chip Kit is a digital reader that accepts contact EMV (chip cards) and contactless EMV (tap) payment methods, along with other standard forms of digital payments that include credit/debit card, and mobile wallet. The reader functions with the existing G11 telemeter and reports into the Seed platform similar to a G11 Cashless Kit.
Cantaloupe's Engage Series, which includes the Engage and Engage Combo, are the next generation of digital touchscreen devices and provide retailers the ability to captivate consumers in new ways and enables truly frictionless purchasing. The Engage Series offers best-in-class networking, security and interactivity, including acceptance of contact EMV (chip cards) and contactless EMV (tap) payment methods. The devices can be fitted in a range of hardware configurations, including vending, kiosks, amusement, and more.
Cantaloupe Go offers a modern line of self-checkout kiosks, Smart Store concepts and the Cantaloupe Go management platform.
The Go Mini is a cash or cashless kiosk great for smaller locations or areas where you want a quick self-checkout cashless experience. This kiosk includes a 10.5 inches touchscreen, built in LTE and Wi-Fi, bill acceptor and cash system add-on, credit card reader, multiple mounting options, and a barcode scanner.
The Go MiniX is a compact, cashless kiosk ideal for locations where quick cashless only self-checkout is key, and is more public friendly with additional accessibility features. This kiosk includes a 15 inches touchscreen, vertical or horizontal orientation, built-in-camera, barcode scanner, biometric scanner (optional), credit card reader, and accessibility features for the visually impaired.
The Go Plus100 is a cash and cashless kiosk for tabletop cabinetry in mid-size or larger locations where you may want to offer cash acceptance that can be loaded onto a stored value card. This kiosk includes a 19 inches touchscreen, built-in camera, barcode scanner, biometric scanner, bill acceptor (optional), credit card reader, and accessibility features for the visually impaired.
The Go Plus200 is a great option if user have space constraints. Customers can opt for the company’s standalone kiosk in mid-size or larger locations where the ability to offer cash acceptance loaded onto a stored value card is available. This kiosk includes a 19 inches touchscreen, built-in camera, barcode scanner, biometric scanner, credit card reader, bill acceptor (optional), customization options for colors and decals, and accessibility features for the visually impaired.
The Go Plus300 is a robust kiosk best for government or military locations that can offer cash-in and cash-out options to allow for flexible payment options for single-use visitors. This kiosk includes a 19 inches touchscreen, built-in camera, barcode scanner, biometric scanner, credit card reader, bill acceptor (optional), cash in/out available, customization options for colors and decals, and accessibility features for the visually impaired.
The Go Max is a digital touchscreen kiosk that supports cash and cashless acceptance for locations looking for an attractive kiosk screen that allows for complete payment flexibility and advanced accessibility features for consumers. This kiosk includes a 43 inches touchscreen, built-in camera, barcode scanner, biometric scanner, bill acceptor (optional), cash in/out available, customization options for colors and decals, and accessibility features for the visually impaired, as well as ADA height compliant features.
The Cooler Café delivers the micro market experience with a smaller footprint. Equipped with Cantaloupe’s Smart Lock technology and a cashless POS device, the Cooler Café remains locked until a payment is made. This solution integrates directly into Seed for easier operator management.
Cantaloupe’s Smart Market, which has gained popularity in Sweden, provides all the same great features customers love about micro markets, just in a locked format. The consumer walks up to the kiosk first, logs into their account, or swipes their credit/debit card to initiate the coolers and snack section to unlock. Then they have a set amount of time to grab their items, scan at the kiosk and pay before the market locks again.
The company offers integrated software services that leverage payment or asset tracking devices in the field to connect into its feature-rich platform for advanced data management, analytics, route scheduling, loyalty and reward programs, and other offerings:
The Seed platform is a cloud-based asset management and optimization solution that provides advanced analytics, dynamic route scheduling, automated pre-kitting, proactive equipment management, intelligent merchandising, inventory management, warehouse purchasing, and accounting management. The Seed platform has a reputation for providing innovative software features and functionality that solve every day customer challenges. It includes Seed Live for sales reporting and asset management, Seed Cashless+ for small business owner advanced management tools, Seed Pro for logistics optimization; Seed Office for back-office management; Seed Markets for integrated micro market management; and Seed Delivery for integrated online ordering and office coffee service (OCS) optimization.
Add-on software services within the Seed platform include Remote Price Change (RPC) and integration with e-commerce partners Tech2Success and Supply Wizards. RPC saves customers time and money by enabling them to manage prices for products in their machines remotely through Seed. The company’s e-commerce integration partners, Tech2Success and Supply Wizards, enable customers to integrate their online stores to Seed platform for inventory and warehouse management. RPC is the latest innovation for Cantaloupe customers through its Seed suite of services.
The Cantaloupe Go Portal is a robust cloud-based platform that provides operators the customization to extend market features on a location-by-location basis. They can manage kiosk performance and uptime, view inventory and integrate the portal directly into Seed for better market management and service efficiencies. Some of the customizable features inside of the Cantaloupe Go portal include the ability to create coupons and guest passes, loyalty and reward programs, enable payroll deduct, client subsidy programs, health and wellness programs, manage credit card fees and deposits, kiosk alerts and more.
Quick Connect is an API web service that allows a client application to securely interface with the company’s payment processing and asset managing services.
Additional services include the company’s Cantaloupe Go consumer mobile app, loyalty programs, campus card integrations, digital ad-management, and data warehouse services.
The company supports its offerings through a number of professional services and back-office functions:
Professional Services: For its larger customers, the company offers a variety of professional services to aid deployment and use of the platform. These include planning, project management, deployment, installation support, Seed implementation, and marketing and performance evaluation.
Network Infrastructure: The company’s services and platforms operate on a combination of proprietary and third-party technologies and are supported by geographically diverse teams. The company uses Amazon Web Services, Inc. (AWS) as its preferred provider to handle its more than $2 billion in annual transactions in the micro-payments space.
Card Processing Services: Through its existing relationships with card processors and card associations, the company provides merchant account and terminal ID set up, pre-negotiated discounted fees on small ticket purchases, and direct electronic funds transfers to its customers’ bank accounts for all settled card transactions and ensure compliance with processing protocols.
Customer/Consumer Services: The company supports its services by providing help desk support, repairs, and replacement services. All inbound consumer billing inquiries are handled through a 24-hour help desk, thereby reducing the company’s customers’ exposure to consumer billing inquiries and potential chargebacks. The company provides remote maintenance updates and enhancements to software, settings, and features to Cantaloupe card readers via wireless connections.
Sales and Marketing
The company’s go-to-market strategy includes both direct sales and indirect channels, depending on the particular dynamics of each of its markets. The company’s direct sale efforts are supported by both inside and external sales team members, which are aligned to serve its enterprise, mid-market, and small business customers and prospects. In order to expand its sales reach, the company has agreements with resellers, affiliate networks, and distributors in select market segments. The company is marketing and selling its products primarily through its full and part-time sales and marketing staff.
Trademarks, Proprietary Information, and Patents
The company owns U.S. federal and foreign registrations for the following trademarks and service marks: Because Machines Can’t Cry For Help, Blue Light Sequence (design only) Business Express, Cantaloupe circle logo (design only), Cantaloupe Systems, Cantaloupe Systems & design (Cantaloupe circle logo), CM2iQ, COMPUVEND, EnergyMiser, ePort, ePort Connect, ePort Mobile & design, eSuds, Intelligent Vending, Routemaster, Seed, Seed & design, Seed Office, SnackMiser, TransAct, USA Technologies, USA Technologies & design, USALIVE, VendingMiser, VendPro, VM2iQ, Warehouse Master, YOKE, TSM Smart Lock, and Cooler Cafe. Of the 140 patents, 49 are still in force as of June 30, 2023. The company’s patents expire between 2023 and 2038.
Active Devices and Active Customers
In order to present meaningful information on its business, the company reports Active Devices and Active Customers. The company defines Active Customers as all customers with at least one active device. The company had 28,584 Active Customers and 1.17 million Active Devices connected to the company’s service as of June 30, 2023.
Relationships
The company’s most important relationships are with its 28,584 customers, which are governed by services agreements that provide for terms and conditions of purchase, rental, subscription or lease of the devices, licensing of its solutions, and processing services. Under the terms, the company typically collects its fees from settled funds, including activation fees, monthly service fees, and transaction processing fees. The company’s relationships with certain large customers are governed by customized terms and conditions contained within individually negotiated services agreements.
The company maintains broad and long-standing relationships with card industry associations, including its listing on the Visa Global Registry of Service Providers. From time to time, the company enters into short-term incentive and promotional agreements with the card industry counterparties.
The company maintains close relationships with domestic wireless telecommunications carriers and with which it has long-term bespoke pricing and support terms.
The company has long-term agreements with our payment processors, each of which is seamlessly integrated with its products and customers.
The company has established reseller relationships with select solution providers for add-on features and services within its traditional offerings.
As part of its strategy to expand the company’s sales reach while optimizing resources, it has agreements with select resellers within the industries it serves.
Lastly, the company has a number of key technology vendors supporting its network environment and technology, its product development and its product offerings.
Research and Development Expenses
The company’s research and development included approximately $3.5 million for the year ended June 30, 2023.
History
The company was founded in 1992. It was incorporated in the Commonwealth of Pennsylvania in 1992. The company was formerly known as USA Technologies, Inc. and changed its name to Cantaloupe, Inc. in 2021.
