Card readers, mobile wallets, and open-loop payments have become a must-have for modern vending. They open the door to more sales, attract new customers, and provide convenience.

But the operators who know this business best — the ones managing hundreds or thousands of machines — have learned that one system quietly powers the foundation of their revenue: closed-loop.

Across Europe, especially in markets like France and Italy, closed-loop solutions such as Coges MyKey continue to drive the most consistent, predictable, and profitable sales.

Let’s look at why.

What “closed-loop” means

In simple terms, a closed-loop system keeps the entire payment cycle inside your business.

Users top up their RFID cards or tags (MyKey, MIFARE, or LEGIC) that works only on your machines. That credit stays within your network, generating revenue that belongs entirely to you — no banks, no third-party processors, no outside costs.

By contrast, open-loop payments (like bank cards or mobile wallets) depend on external networks for every sale. That means transaction fees, approval times, and internet dependency.

100% of the revenue stays with you

This is the single most powerful reason operators don’t give up closed-loop: every cent of every sale stays in their system.

Most vending purchases are €2. Even a small bank fee can erase thousands of euros of profit each year. With closed-loop, that money doesn’t go anywhere. It stays in your business, building value with every purchase.

ⓘ Did you know? A 2% fee on €1 may sound small — but for a fleet selling one million coffees, that’s €20,000 a year lost to bank commissions.

You get paid before you sell

Closed-loop systems run on preloaded credit. When users top up their cards, tags or MyKey, that balance becomes your revenue instantly — even before they make a purchase.

This gives operators an immediate cash advantage. You don’t wait for bank settlements or approvals — your machines are generating revenue before they even make a sale.

That’s why closed-loop isn’t just a payment system. It’s a cash-flow engine. It turns everyday transactions into guaranteed liquidity, something open-loop can’t do.

Works offline

Every operator has machines in places where internet is unreliable — factories, hospitals, schools, rural areas. When open-loop terminals lose connectivity, they stop working.

Closed-loop doesn’t rely on the internet. It works offline, processing every payment locally.

Simple for workplaces and users

Workplaces remain one of the largest segments of the vending business — and closed-loop is built for them.

Employers often want to offer discounts or free products. Operators can assign credits, apply limits, or create user groups directly through the closed-loop system. It’s automatic, clean, and efficient.

For users, it’s even simpler. A MyKey lives on their keyring, always ready to use. No phone, no app, no password — just insert a key and enjoy.

That’s why in southern Europe, closed-loop isn’t an extra feature. It’s part of the daily routine.

The quiet power behind dependable sales

Every operator needs card readers and mobile payments — they attract customers and expand accessibility. But closed-loop remains the silent warrior behind vending profitability.

That’s why experienced operators don’t see closed-loop as “old tech.”
They see it as the foundation of a vending business that actually works.

Interested to learn more about Coges closed-loop solutions? Feel free to reach out.