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Straight Talk Wireless is piloting the sale of pre-activated phones through vending machines at select Walmart locations, according to Wave7 Research's latest prepaid report, which cites a story from Fast Company. David Kim, Chief Revenue Officer of Verizon Value, said the goal is to simplify phone activation for customers who may find the at-home process confusing. "A lot of our customers, they get confused with what to do at home. It drives calls to care. It drives customer dissatisfaction," Kim stated.
The vending machines handle the entire activation process internally, including identifying, tracking, and activating each device. They require an internet connection to function.
Pre-activated phones work immediately out of the box, removing the need for customers to manually activate them or add credit. Verizon appears to be aiming to reduce support calls, shorten customer wait times, and potentially cut staffing costs by using these vending machines.
Even customers who aren’t ready to make a purchase can use the machines to browse available phone and plan options without waiting for a sales associate. Kim noted that for those who do need help, shorter wait times could result as others complete transactions through the machines.
Currently, the pilot includes just five Walmart locations, including one in Athens, Texas, where the machines have already sold hundreds of phones. Verizon plans to expand to about 50 additional Walmart stores by the end of the year. The machines currently accept credit and debit cards, with support for cash expected to be tested soon.
Straight Talk Wireless, a Verizon Value brand, is sold exclusively at Walmart. Verizon also offers other prepaid brands in stores, such as Total Wireless, Simple Mobile, Tracfone, Verizon Prepaid, and Walmart Family Mobile. The company is considering expanding vending machine availability to other retail partners and potentially including more of its brands.
Straight Talk Has Offered Vending Machines Before
This isn't the first time a wireless provider has attempted to offer sales through vending machines. In fact, it's not even the first time Straight Talk Wireless has used them. Jeff Moore, Principal of Wave7 Research recalls seeing one in a Las Vegas airport over a decade ago. A 2013 YouTube video also shows one outside a former K-Mart store.
According to this Reddit post and article from 9to5Google, Google Fi and other brands have sold SIM cards in vending machines before. However, none of those brands have offered phones like Straight Talk.
Customers will be able to choose from a range of phones from brands such as Apple, Samsung, TCL, and others, with various price points available.
“This is a fascinating experiment. If successful, there could be reduced need for interaction with wireless reps. However, there is no guarantee that consumers will react positively to this process.” – Jeff Moore, Principal of Wave7 Research