The coronavirus
pandemic has quickly changed the financial situation of many people around the
world, and startups working in this sector may play a significant role in the
recovery of the global economy. Companies are approaching finance in a range of
unique ways, from facilitating easier peer-to-peer lending
to streamlining the process of converting change into a more usable form of
currency. One company focused on the latter is Coindrum, a unique Irish startup
that enables people to convert their coins to spending vouchers that they can
use in various stores. Such a contactless way of dealing with loose change may
become even more popular in the months to come as transaction dynamics shift
amid the pandemic.
A New Way of Handling Spare Change
Many homes possess some sort of collection vehicle for loose change. Research has shown that the average household has a significant amount of money sitting in coin jars. While some solutions exist for dealing with this money, they are onerous and can involve hand sorting and rolling, as well as paying high fees. Coindrum recognized this issue and designed a simple solution that benefits both individuals and retailers. Now in pilot mode, Coindrum offers retailers a machine with all the required hardware and the ability to customize receipts and screen flow at no charge. The company even backs its product with real-time remote monitoring and is available for troubleshooting any issues that may arise. Retailers can take advantage of the machine with no investment besides space and a power outlet.
When customers
come to the retailer, they are able to deposit their coins into the machine,
which in turn provides a voucher that can be redeemed through a cashier. The
vouchers can be used to pay for products in the store, or individuals can
simply cash out their coins with bills. While customers have the option of
cashing out their coins, the machine provides an incentive for them to come
into the store, and having credit there encourages them to spend money. Since the
system does not take a commission—and instead offers shopping
vouchers—consumers are more likely to choose Coindrum over other options.
A Method to Dispose of Unwanted Coins
The founders of Coindrum have recognized another significant issue involving coins. As people travel and use cash, they naturally start to accumulate coins. However, when they go to another country, the coins can become useless and difficult to dispose of, as there is usually not enough for a bank to easily convert them. To solve this issue, Coindrum created machines that can be placed in duty-free areas of airports that handle coins in many different currencies. Individuals can get rid of all their coins at once and receive a voucher that they can then spend at duty-free shops. Otherwise, the coins will likely end up in a jar at someone’s home and possibly even be tossed in the trash over time. Coindrum even provides a 10 percent increase on the value of the coins in order to encourage people to use the machine. Not only are customers getting rid of useless coins, but they are being paid to do so.
This unique
Coindrum duty-free solution leads people to make purchases when they otherwise
wouldn’t. By using the machine, individuals are committing themselves to spend
money. Research on consumer behavior related to the Coindrum machine shows that
people actually spend an average of 10 times what their vouchers are worth and
usually outspend those who do not have vouchers. A case study found that the
average value of a voucher was 5.79 Euros and the average transaction value
with a voucher was 47.17 Euros, compared to 33.75 Euros for transactions
without a voucher. Retailers in duty-free areas pay a nominal transaction fee
whenever customers redeem vouchers in their shops. Just as with retailers
outside of airports, Coindrum provides a turnkey machine with no upfront costs.
The True Value of the Coindrum Coin Solution
Coindrum solves a number of issues and provides many benefits to both retailers and shoppers. Coins are a nuisance for almost everyone involved. People do not know what to do with all the loose change they accumulate, whether at home or in the course of their travels. Moreover, counting coins at a store takes a lot of time and effort. Now, due to COVID-19, many stores are not even accepting cash, so the voucher is a great alternate option that prevents the need to directly handle money. The Coindrum machine logs all transactions online and has an anti-fraud coin recognition system, as well as a mechanism for handling any debris that may be deposited alongside the coins. Furthermore, the machine self-locks and has wheeled coin vaults for simple and secure transportation.
In both airports
and other retail shops, Coindrum saves time for both customers and cashiers by
eliminating the need to count coins. In addition, retailers have new avenues
for marketing to their customers using the Coindrum system. Each machine has a
42-inch high-definition touch-screen that can be customized according to the
retailer to recommend products that can be purchased with the recent deposit.
Individuals can learn more about Coindrum and how to become involved with the
pilot program online at Coindrum.com.
