[April 19, 2012]

USA Technologies Upgrades Its ePort Connect Service Platform For Scalability and Growth

USA Technologies, Inc. (NASDAQ: USAT), ("USAT"), a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries, has completed an upgrade to its ePort Connect® service platform-an action aimed to support USAT's growing base of customers and the next generation of services and emerging M2M applications, such as mobile marketing and mobile payment. The customer-facing portion of the upgrade launched this week, with new features and functionality added to its web-based customer data portal, USALive®.

"This next generation upgrade really revitalizes USA Technologies' (News - Alert) platform for service delivery," said Stephen P. Herbert, Chairman and CEO of USA Technologies. "We expanded our capacity for growth by moving to industry-leading computing infrastructure, and made important upgrades to proprietary and third party software that improve system performance and our ability to efficiently scale. We also improved card user experience, cutting approximate authentication times-from swipe to approval-in half.

"In addition, users of our cloud-based data reporting system will see an improved USALive that is easier to navigate, customize and automate for faster access to valuable information to manage their businesses. Finally, we made what we believe to be important enhancements to our ePort Connect service infrastructure that set the stage for new forms of revenue growth-from the hosting of more third party hardware to expanded services that stem from the emerging trends in M2M applications and NFC mobile payment," said Herbert.

The upgrade incorporates the latest in network server technology in addition to proprietary software development that markedly increases capacity and allows USA Technologies to seamlessly "add on" capacity as USAT's connected service base expands. Recently, USA Technologies reported preliminary data for the quarter ended 3/31/2012 that indicated its connected service base had grown to 148,000 cashless and M2M connections-double what it was two years ago.

In addition, the upgrade enhances the ease with which a greater variety of third party devices can connect to USAT's ePort Connect service. Today, devices from some of the biggest vending machine and kiosk manufacturers in the business network to ePort Connect, including MEI, Crane Merchandising Systems and AMI Entertainment Network.

Users of USAT's customer reporting portal noted an improved user interface earlier this week. Among the enhancements introduced were:

• Faster and more customizable (user-defined) reportng capabilities;
• New "look-up" capabilities to make it easier to search;
• Additional analytical data for logistics and inventory decisions aimed at saving smaller businesses the expense of investing in an additional reporting system;
• DEX transfer can now be made immediately, or triggered at a pre-determined time when an operator requires it, for added convenience. For example, USA Technologies will have the capability to send machine health alerts directly from a machine to an operator via email or another server using SFTP (Secure File Transfer Protocol); and,
• Anticipated in 30 days, the opportunity to have MDB (multidrop bus) alerts added for better payment device diagnostics for bill acceptors and coin acceptors.

ePort Connect® is a PCI (News - Alert)-compliant, end-to-end suite of cashless payment and telemetry services specially tailored to fit the needs of the small ticket, self-service retail industries. Services offered through ePort Connect currently include payment processing services (such as wireless connectivity, online sales reporting through USALive, settlement, over-the-air updates), remote DEX data management and machine health alerts. Recently, USAT has added two-tier pricing to this suite of services.

About USA Technologies:

USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems and services in the vending, commercial laundry, hospitality and digital imaging industries. The Company has been granted 79 patents and has agreements with Verizon, Visa, Compass (News - Alert), Crane and others. Visit our website at www.usatech.com.

Forward-looking Statements:

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation the financial position, achieving profitability, business strategy and the plans and objectives of USAT's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to USAT or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of USAT's management, as well as assumptions made by and information currently available to the USAT's 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, the ability of USAT to generate sufficient sales to generate operating profits, or conduct operations at a profit; the ability of USAT to retain key customers from whom a significant portion of its revenues is derived; whether USAT's customers continue to operate or commence operating ePorts^® received under the Jumpstart program or otherwise at levels currently anticipated by USAT; the ability of USAT to compete with its competitors to obtain market share; whether USAT's customers continue to utilize USAT's transaction processing and related services, as our customer agreements are generally cancelable by the customer on thirty to sixty days' notice; whether the significant increase in the interchange fees to be charged by Visa and MasterCard (News - Alert) for small ticket debit card transactions would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; whether or not our continued non-acceptance of any MasterCard debit cards would adversely affect our business, including our revenues, gross profits, and anticipated future connections to our network; whether USAT's existing or anticipated customers purchase ePort devices in the future at levels currently anticipated by USAT; and, whether USAT's customers will continue to experience the levels of cashless sales or number of cashless transactions seen in the two-week period following deployment of the Two-Tier Pricing Program. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, USAT 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.

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