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Newsbit

Next way to access Net: vending machines
By Bloomberg News
Special to CNET News.com
December 2, 1999, 9:55 a.m. PT

PURCHASE, New York--Soft-drink maker Pepsico said it may link its vending machines to a computer that provides access to selected Internet sites and lets consumers buy sodas with credit cards.

The maker of Pepsi-Cola and Mountain Dew is considering devices developed by USA Technologies, said Larry Jabbonsky, a spokesman for Purchase, New York-based Pepsico. USA Technologies will unveil the devices today.

Soft-drink makers are computerizing vending machines to add functions and make them easier to use. Last month, Coca-Cola said it tested a vending machine that can raise or lower soda prices based on demand.

"This is one of a number of new technologies we're looking at," Pepsico's Jabbonsky said. He said the company has no plans to introduce a Web-linked machine anytime soon.

Computer maker IBM and USA Technologies are unveiling the computer device jointly. It can be connected to a vending machine or gas pump and has a screen that can display rebates, advertisements and special offers listed on the Web pages of companies that sign up for the service.

The computer includes a slot for swiping a credit card to buy a soft drink.

Consumers can touch text on the display screen or talk to a customer service representative to buy products, said Stephen Herbert, chief operating officer of Wayne, Pennsylvania-based USA Technologies.

IBM is forming partnerships and making computer chips to take advantage of the use of cell phones, handheld electronic devices and other types of computers that provide access to the Internet.

"You're going to see an explosion of devices that provide access to the Internet other than" personal computers, said Bob Gault, IBM's vice president of small and medium business services in the Americas.

The computers are based on products that USA Technologies has made for 400 U.S. hotels, Herbert said. IBM will make the new machines in a Boca Raton, Florida-based plant and help manage the network that links the computer to the Internet. USA Technologies will maintain the network, Herbert said.

While Coca-Cola has used vending machines that can accept special cards, it doesn't have vending machines that accept credit cards.

"We continue to internally test and evaluate two-way communications technology for vending machines," said Bob Bertini, a spokesman for Coca-Cola, based in Atlanta.

USA Technologies shares fell 0.63 to 4.63 in late-morning trading after rising to a 52-week high of 6.56 earlier. IBM rose 2.59 to 106. Pepsi fell 1.03 to 35.5.

Copyright 1999, Bloomberg L.P. All Rights Reserved.

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