USA Technologies Investor Presentation

NASDAQ: USAT

Safe Harbor Statement

All statements, other than statements of historical fact included in this presentation, are forward-looking statements. When used in this presentation, words such as

“anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions, as they relate to USA Technologies or its management, identify forward-looking statements.

Such forward-looking statements are based on the beliefs of USA Technologies’ management, as well as assumptions made by and information currently available to USA

Technologies’ 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, business, financial market and economic conditions; the incurrence of any unanticipated or unusual non-operating expenses which would require diversion of

cash resources; the ability of USA Technologies to predict or estimate its future annual revenues or connections; the ability of USA Technologies to retain key customers

from whom a significant portion of its revenues is derived; the ability of a key customer to reduce or delay purchasing products from USA Technologies; whether suppliers

would increase their prices, reduce output or change their terms of sale; whether, and the promptness with which, customers install new connections; whether, and the

extent to which, new connections will generate revenues for USA Technologies in future quarters; whether USA Technologies’ customers continue to utilize USA

Technologies’ transaction processing and related services, as customer agreements are generally cancelable by the customer on thirty to sixty days’ notice; the ability of

USA Technologies to accurately estimate potential connections controlled by its existing customer base and predict future market conditions and customer behavior;

whether customers will increase their purchases of USA Technologies’ products and services in the future; the ability of our products and services to avoid unauthorized

hacking or credit card fraud; the extent to which USAT’s 2015 Cashless Knowledge Base is predictive of average annual cashless sales; the ability of the Company’s 2015

Cashless Knowledge Base to predict future market conditions, customer and consumer behavior, and average ticket prices and cashless sales across all of USAT’s

customer locations; the accuracy and reliability of third party data relating to potential connections in the market; the ability of Apple Pay to drive demand and adoption; and

the possibility that all of the expected benefits from adoption of cashless payment will not be realized by all vending operators, or will not be realized within the expected

time period. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made in this presentation speaks only

as of the date of this presentation. Unless required by law, USA Technologies 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.

Non-GAAP Information: This presentation includes a discussion of non-GAAP net income (loss) and Adjusted EBITDA which are non-GAAP financial measures that USA

Technologies believes are useful for an understanding of the Company’s ongoing operations. These non-GAAP financial measures are supplemental to, and not a

substitute for, GAAP financial measures such as net income or loss. Details of these items and a reconciliation of these non-GAAP financial measures to GAAP financial

measures can be found in the Appendix to this presentation, and at www.USAT.com under the “Investor Relations” tab.

5/15/2017

2Introduction

Investment Highlights

- Strong growth company

- High proportion of recurring revenue

- Large penetration opportunity in U.S.

- Market and technology leader for cashless

payment in self-serve retail

- Improved cash flow from operations

- Mgt. team with deep relevant experience

- Deferred tax asset of approximately $28 M

that may be available to offset future

taxable income

Quarterly Revenue Highlights

5/15/2017

3Introduction

0

5

10

15

20

25

30

$s

in m

illio

ns

License & Transaction Equipment Sales

Customer Base Increasing at Substantial Rate

174,000 Connections 1Q 2013

504,000 Connections 3Q 2017

3,725 Customers 1Q 2013

12,400 Customers 3Q 2017

Connections Customers

5/15/2017

4Introduction

-

100,000

200,000

300,000

400,000

500,000

600,000

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

USA Technologies Overview

Market leading, IoT, one-stop cashless payment and telemetry services specifically designed for the self-serve retail market.

5/15/2017

5Introduction

USA Technologies Overview

USA Technologies provides the technology that modern businesses need to thrive in the rapidly evolving unattended retail marketplace.

5/15/2017

6Introduction

Complete Solution for Unattended Payments

Nutrition Information

Digital Advertising

Loyalty Rewards / Payroll Deduct

Credit, Debit & Mobile Payment Processing

OTA Updates & Data Management

PCI Level 1 Security

M2M Telemetry & VMS Integration

5/15/2017

7Introduction

Large Domestic Opportunity in Self-serve Retail

Established Foothold in Multiple Market Segments

Vending

Office Coffee

Automated Carwash

Amusement & Arcade

Parking

Tolls

Commercial Laundry

Kiosks

504,000

Connections

- Strong growth company

- High proportion of recurring revenue

- Large penetration opportunity in U.S.

- Market and technology leader for

cashless

5/15/2017

8Introduction

Large Domestic Opportunity in Self-serve Retail

Vending

Office Coffee

Automated Carwash

Amusement & Arcade

Parking

Tolls

*Company Estimate

Kiosks

13 – 15 Million potential

connections*

Sources: US Department of Transportation, 2008; IHL Kiosk Study, 2010 (2011 projections) First Research, March 2011, June 2010; Vending Times Census 2012; Smart Card Alliance 2006; Automated Merchandiser State of the Coffee Industry 2009; USA Technologies estimates.

Commercial Laundry

5/15/2017

9Introduction

National Vending Trends

The 2015 USA Technologies’ KnowledgeBase shows vending consumers continue to buy more,

spend more and buy more often with credit and debit cards on ePort-equipped machines.

Average Annual Cash Sales + Cashless Payments + Average Sale +

5/15/2017

10Introduction

Kiosk Opportunity

- IoT driven kiosk opportunity

- Kiosk market in North America expected to grow at 6.2% CAGR1

- Embedded systems, independent of traditional hardware

- Typically larger transaction amounts

- TouchTunes has 65,000 potential locations

- MinuteKey migrating all locations to ePort Connect

5/15/2017

11Introduction

Significant USAT Partners and Adoption Drivers

5/15/2017

12Introduction

Largest NFC-enabled Mobile Footprint

- Approximately 400,000 NFC-enabled merchant locations

- All newly shipped ePort terminals are NFC-enabled

- Google’s launch of Android Pay solidifies broader market acceptance of the mobile payments technology

- Apple Pay introduction marks tectonic shift, expected to drive demand and adoption

- Accepted throughout USAT network

13Introduction

Largest NFC-enabled Mobile Footprint

- ~400,000 NFC-enabled merchant locations

- All newly shipped ePort terminals are NFC-enabled

- Apple Pay introduction marks tectonic shift, expected to drive demand and adoption

- Accepted throughout USAT network

- Google’s launch of Android Pay solidifies broader market acceptance of the mobile payments technology

5/15/2017

14Introduction

Growth Strategy

We Are Experiencing an Inflection Point

Core

Growth

Value-

Added

ServicesMobile &

Other

TODAY

Drive

Adoption

Strategic

Expansion

FY 2014 FY 2015

Early

Adopters

Market

Acceptance

Achieve

Scale

FY 2012 FY 2013

156,000 connections

4/12

Drive Market

Achieved scale in service model;

Crossover to positive Adjusted EBITDA

Leverage Model

Targeting: $100M revenue;

Increasing cash generated by

operations

500,000 connections250,000 connections

4/14

Build Momentum

Free cash flow and non-GAAP net income

504,000connections

5/15/2017

16Growth Strategy

Largest Growth Opportunity: Our Customers

88% of New Connections came from existing customers in 3Q FY17

+2 Million potential connectionsThere are over 2 million* possible connections in our customers’ portfolios

504,000 existing connections

2 Million+

potential

connections*

*Company Estimate

5/15/2017

17Growth Strategy

Building Blocks of Growth

GR

OW

TH IN

CO

NN

ECTI

ON

S

GR

OW

TH IN

TH

E V

ALU

E O

F C

ON

NEC

TIO

NS

5/15/2017

18Growth Strategy

VendScreen Acquisition

One of the industry’s most advanced interactive media, content delivery systems, and

touchscreen platforms designed specifically for the self service retail market

Nutrition Information

Digital Advertising

Loyalty Program

Coupons / Offers

5/15/2017

19Growth Strategy

ePort Interactive Launch

5/15/2017

20Growth Strategy

Financial Progress

Expanding Connection Base Driving Growth

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22Financial Progress

* Company estimate

119,000

164,000

214,000

266,000

333,000

429,000

544,000 -554,000*

0

100,000

200,000

300,000

400,000

500,000

600,000

FY11 FY12 FY13 FY14 FY15 FY16 FY17E*

Connection Base

Increasing Annual Transaction ValueM

illio

ns

Annual Transaction Value

5/15/2017

23Financial Progress

Projected to reach $1 billion annual transaction run rate during FY 2017

$20M

$171M

$219M

$294M

$389M

$584M

$0

$100

$200

$300

$400

$500

$600

$700

FY11 FY12 FY13 FY14 FY15 FY16

Revenue Growth

5/15/2017

24Financial Progress

$22.9M

$29M

$35.9M

$42.3M

$58.1M

$77.4M

$95M - $100M*

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

FY11 FY12 FY13 FY14 FY15 FY16 FY17E*

Revenue

* Company estimate

Mill

ion

s

Fiscal 2017 Outlook

MetricFY17

Guidance

Increase from

FY16

Connections

Revenue $95,000,000 to $100,000,000

+ 115,000 to 125,000 27% to 29%

23% to 29%

5/15/2017

25Financial Progress

Management Team

Stephen P. HerbertChairman and CEO

• Chairman and CEO since 2011• President and COO from 1999• Operations, Sales and Marketing at

PepsiCo including market strategy for vending and retail channels of Pepsi Cola N.A.

Priyanka SinghCFO

• Appointed CFO in 2017• VP Product Strategy &

Innovation/Division CFO, Global Payments Inc., CFO Heartland Commerce Units/VP Finance, Heartland Payment Systems (acquired by Global Payments) and various leadership roles with General Electric

• Certified Public Accountant and a member of the AICPA

Maeve DuskaSVP Sales & Marketing

• SVP Marketing since 2015• VP Marketing from 2009• Marketing for all products and services

for flagship ePort branded services from 2004

• Marketing Manager, Higher Education, Aramark

George HarrumSVP Operations

• SVP Operations and Customer Service since 2001

• Various Operations Positions, Danyl/Schlumberger from 1982

Michael K. LawlorCSO

• Appointed CSO in 2016• SVP Sales and Business

Development since 2010• Sales and partner development

programs from 1996• National and Regional sales

manager positions, Pepsi Cola Co.

5/15/2017

26Financial Progress

www.usat.com

NASDAQ: USAT