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Internet of Things Based Smart Vending Machine using Digital Payment

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Article  in  Indonesian Journal of Electrical Engineering and Informatics (IJEEI) · September 2021

DOI: 10.52549/ijeei.v9i3.3133

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Indonesian Journal of Electrical Engineering and Informatics (IJEEI)
Vol. 9, No. 3, September 2021, pp. 719~731
ISSN: 2089-3272, DOI: 10.52549/ijeei.v9i3.3133  719

Internet of Things Based Smart Vending Machine using Digital

Payment System
Wahidul Alam1, Dhiman Sarma2, Rana Joyti Chakma2, Mohammad Jahangir Alam3, Sohrab Hossain4
1Departmentof Computer Science and Engineering, University of Science and Technology Chittagong, Bangladesh
2Departmentof Computer Science and Engineering, Rangamati Science and Technology University, Rangamati,
Bangladesh
3Department of Computer Science and IT, Southern University Bangladesh, Chittagong, Bangladesh
4Department of Computer Science & Engineering, East Delta University, Chittagong, Bangladesh

Article Info ABSTRACT

Article history:
The advent of the Internet envisions a cashless society by enabling financial
Received Apr 30, 2021 transactions through digital payments. Significantly, the emergence of
Revised Jul 5, 2021 coronavirus (COVID-19) disrupted our traditional cash handling means and
Accepted Aug 23, 2021 triggered an inflexion point for switching towards contactless digital payments
from physical cash payments. Furthermore, Internet of Things (IoT)
technology escalates digital payments to the next level by enabling devices to
Keywords: render goods and services without requiring any human interaction. This
research proposed an IoT-enabled cashless vending machine that incorporates
IoT both cloud computing and payment gateway for ordering and purchasing items
Internet of Things through digital payment systems by using a mobile application. The system
Vending Machine enables a pre-installed mobile application to scan the Quick Response (QR)
Cloud Computing code attached to the body of a vending machine, opens the portal of a web-
Digital Payment based virtual machine through the code, allows user to choose and order items
Mobile Application from the virtual vending, initiates and authorizes a digital payment through an
IoT gateway installed inside the physical vending machine by establishing a
connection between user's and vendor's financial entities, and finally,
dispenses the ordered items by unlocking the shelves of the vending machine
after the successful payment transaction. It operates in the Arduino platform
with an ATmega 2560 Microcontroller and Esp8266 Wi-fi module as hardware
components, mobile application software, and payment gateway API. The
system performed an average response time of 14500 milliseconds to pick a
product after running 150 consecutive API test calls. This result shows a
satisfying time for enhancing customers' buying experiences with digital
payment systems and a customizable and cost-effective IoT-based intelligent
vending machine to introduce for mass production.
Copyright © 2021 Institute of Advanced Engineering and Science.
All rights reserved.

Corresponding Author:
Sohrab Hossain,
Department of Computer Science & Engineering,
School of Science, Engineering, and Technology,
East Delta University, Chittagong, Bangladesh.
Email: [email protected]

1. INTRODUCTION
The Internet of Things (IoT) incorporates various devices into networks to offer progressed and
intelligent services. The concept of intelligent gadgets, smart homes, smart cities and so on, the Internet of
Things (IoT) has risen as a region of unfathomable effect, potential, and development, with Cisco Inc.
foreseeing by 2020, the approximate number of intelligent devices will be 50 billion in the market. The present
organizations mean to enhance customer engagement by thinking of different business models and promoting
strategies as innovation keeps on developing at tumultuous speeds. The fourth industrial revolution and the
expanding reception of the IoT have transformed current corporate strategies. Actualizing sensors in existing

Journal homepage: http://section.iaesonline.com/index.php/IJEEI/index

720  ISSN:2089-3272

merchandise update them to an object. This system is fit for getting a response from its atmosphere through
sensing with other devices and fine-tuning its behaviour consequently, at the end of the day, a cyber-physical
system (CPS) [1-4]. Big data analytics methods have also been remembered for the critical purposes of the
present organizations, be that as it may, a few deterrents and restrictions have restricted their amalgamation in
rehearsal. Present big data analytics procedures should be improved to manage the ever-expanding utilization
of speed and veracity of captured data [5, 6].
The vending machine is essentially an IoT-enabled automated machine that dispenses items like
drinks, snacks, foods and so forth. The vending machine can assist shopkeepers with reducing their expenses
by paying a lower rental charge with 24 hours of working time each day, thereby maximizing their profit
margin. A customer can buy products easily with the help of digital payment systems through the vending
machine. Vending machines are extensively and frequently used in many technologically advanced nations
like the USA, UK, China, Japan and more [7-10].
Vending machine business is an exceedingly divided and competitive business with many small and
medium ventures per country and only two or three multinational organizations. Without a doubt, the vending
margins are not very high to the point that any interest in trend-setting innovations bringing operational cost
investment funds expects high legitimize the Return on Investment (ROI). In this manner, small vending
operators are ordinarily reluctant to put resources into new advances [11-13].
With the immense importance of vending machines, this paper presented a locker-based smart
vending machine connected to the Internet that is implemented with IoT technology, which will allow
customers to buy any product 24/7 and be cost-effective. It includes features digital platform on the web for
the vendors, refillers and admins to operate and track the business on a fingertip. As digital payment systems
are prevalent nowadays and commenced a new potentiality of payment methods, the developed smart vending
machine is locker-based, and customers can buy products by making payments using their digital payment
wallet with the help of a mobile application. The prime objective of our methodology is to diminish the overall
cost of the business and make this model suitable to draw in a more significant number of vending machine
operators that could apply this innovation, simultaneously improve the customer buying experience.
Table 1. Taxonomy of related works for IoT Based Vending Machine
References Specification Method Limitation
[14] Focuses on developing a smart vending Smart shopping-based Cyber- Do not explain the payment
machine which is an open and interoperable Physical system. method.
IoT platform.
[15] Focuses on IoT smart classroom Internet of Things based Resource The domain of the system is very
environment based smart vending machine Management System narrow.
[16] Focuses on pollution prevention caused due Reverse vending machine based Focus only on environmental
to plastic items pollution management system issues like pollution.
[17] Focuses on Designing Human Mistake-Free Human-centred design process Try to design a human
Machine involvement-free system.

From Table 1, it is observed that none of the papers focuses on mobile banking payment systems. Our
system developed an IoT-based smart vending machine where customers can make payments using their
mobile phones.

2. RESEARCH METHOD
The main goal of our research is to empower a cost-effective platform for vending machine business
with the assistance of the state of the art technology and IoT solutions. Figure 1 depicts the underlying high-
level scenario (SCN) amongst the key different components and users.

2.1 SCN-1
Customers will be connected to the Internet in their smartphones provided by the Mobile Network.

2.2 SCN-2
Each vending machine has a unique QR code (Quick Response code) printed to its body, containing
a specific URL connected to a web-based system that gives a virtual representation name Virtual Vending
Machine to the customer. In this way, the client can see the list of products of that particular vending machine
and select the items to purchase the items from the machine.

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IJEEI ISSN: 2089-3272  721

Figure 1. Components and users of a vending machine

2.3 SCN-3
A mobile application has been developed to interact with the Virtual Vending Machine, which needs
to be installed in the customer's smartphone. It comes up with the advantage of enabling greater security in
payment from the user's wallet and provides a comfortable user experience to the customer to interact with the
machine to purchase the product.

2.4 SCN-4
An IoT Gateway is installed inside the physical vending device and connected through the Internet.
This built-in electronic board is designed and assembled with Arduino compatible modules with meagre costs.
After completing a successful payment, the machine gets the request to dispense the item in the locker.

2.5 SCN-5
Digital Payment Service receives the customer payment that has been paid through the app. On the
Internet of Things-based vending machine, mobile proximity payment can be applied using a smartphone app
in a fully contactless way [18].

2.6 SCN-6
The payment goes to the Merchant Account legitimately after deducting a particular percentage as a
commission that the vending machine operator agreed to receive from the merchant.

3. IMPLEMENTATION
In our proposed framework, a user has to install a mobile application that we have developed to
communicate with the vending machine. Through this application, a customer needs to sign in by giving a
mobile number.

Figure 2. Flow Chart of Proposed Method

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For the first time, a customer needs to verify the account by providing a verification number that has
been generated and sent by the system to the customer's mobile number. After the successful login customer
needs to scan the printed QR code in the machine; if the internet connection is available on the customer's
phone, the list of products with the price of the particular machine will be displayed in the app. Customers can
choose the products and make the payment through their Digital Payment Service account integrated with the
mobile app. In this system, we used bKash, a top-rated Bangladeshi digital payment service, for the simulation
[19]. After a successful transaction, the products will be dispensed from the lockers for collection.
The way toward buying items in our framework is straightforward, and it tends to be finished in three
stages, as shown in figure 2.
How it works:
▪ Scan the QR code printed on the vending machine.
▪ Choose the product and pay through a digital payment account.
▪ Collect the purchased item.

3.1 Software Prototype

3.1.1 QR Code Scanning
Figure 3(a) demonstrates the UI for the client where they need to tap the "Scan QR Code' button to scan the
imprinted QR code on the vending machine body. Figure 3(b) shows that the client will navigate to the item
list screen if the scan is successfully done.

Figure 3. (a) Scan Button Screen, (b) Scan QR Code Screen

3.1.2 Choose Product and Payment by Digital Payment System

Figure 4(a) shows the lists of the products available with the price and picture of the vending machine's
products. Customers can pick up to 5 items maximum to purchase at one go. The selected items will be shown
up in the cart below the screen, along with the total price of picked items. Customers can discard anything from
the cart as they need. When a user can continue by tapping the arrow icon in the right corner of the cart, it will
navigate the customer to the checkout screen, where the client will see the list of the products he has picked,
as appeared in figure 4(b).

Figure 4. (a) Product List Screen, (b) Checkout Screen

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Customers can even now discard any item from the list subject to their tendency. These features are
giving a decent user experience in terms of purchasing items from the vending machine. By tapping the "Buy
with bKash" button down, the customer will continue to make the payment through the bKash payment
system. Ensuing to pick things customers need to pay by bKash by utilizing their bKash credentials is shown
in figure 5.

Figure 5. bKash Payment Screen

3.1.3 The Process of the payment is saved and issued using real money.
To make a successful payment, customers must have a sufficient balance in their bKash wallet and provide a
valid bKash PIN. Once the payment is successful, the amount issued for the purchased items will be deducted
from the customer's bkash wallet, which is entirely handled by a digital payment company (bKash). All the
necessary information of payment, such as items, number of items, customer, transaction id, etc., are saved in
the database as payment history, which is helpful to track the payment and manage the inventory.

3.1.4 Collection of Products

After a successful transaction with bKash, the system will communicate with the vending machine through the
IoT-enabled API. The API will update the status of the LED in the database, indicating the vending machine
lockers are open or not. The hardware will anticipate the database persistently to check the update. With the
objective, it will choose to turn on the specific LED's, which represents the locker we utilized in our simulation.
The system will check the number of items and which items are picked, and according to that the locker will
automatically open and dispense the products to the customer. In any exceptional cases, for instance, no locker
opened a lot after a successful transaction, the wrong item is passed on or expired items are conveyed, etc., or
some other bothersome conditions happened, there will be a report and contact segment for the customer in the
app with the objective that they can inform about the bungle or blunder cases to the vendor.

3.2 Cloud System Architecture

A cloud-based distributed system can be the solution for maintaining a few machines for many of
them. As an outcome, the size of the vending operators, estimated in the number of machines to be connected,
ought not to be a hindrance to utilizing the solution at all. Vending machine operators can own multiple vending
machines and operate their business in real-time [20, 21].

Figure 6. The Architecture of Software Application

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Figure 6 describes the building blocks of the architecture of the software application that has been
designed. This high-level diagram depicts the relationship between the components and the scenarios (SCN)
of their interactions. It also shows the three primary services of the system are Application, API and Data
Storage, where Application and API together play a role as one block.
The web application has three types of users. Customers are passive users of the system. In SCN-1,
the mobile customer application interacts with the web application through the API provided by the web
system. Customers can create accounts using OTP (one-time-password) verification code in the system and get
the list of the product of the intended vending machine. Also, the web application can store the user payment
information to give a seamless experience to the customer while purchasing. This web application bridges the
digital payment system and the customer application enabling all the business logic and securities.

Figure 7. Vendor Dashboard Screen

SCN-2 vendors can use the web application to manage all their vending machines. Each vendor gets
a dedicated account and a dashboard to monitor the business, as shown in figure 7. Vendors can refill the
lockers when they are empty or the product of the locker has sold out, as in figure 8, can check all the
transactions and business progress using the dashboard panel as figure 9.

Figure 8. Vendor Refill Screen

The SCN-3 is the interface of the Admin and the web application. Admin will also have a dedicated
panel and dashboard, as in figure 10, where they can manage and monitor all the vending machines and vendors
in one place.
The web application provides the API to communicate between users and the applications, as depicted
in SCN-4.

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Figure 9. Vendor Transaction list

Figure 10. Admin Dashboard Screen

Our system uses Laravel (an open-source PHP framework) to write the program and developed
RESTful API to communicate users and IoT modules. The web application provides an API to access the
database to the IoT module as SCN-5 to know which and when the locker should open and close to dispense
products. SCN-6 represents the link between web applications and the database. The SCN-7 IoT module
receives the data from the web application through the API.
In short, designing our private application allows us to execute self-provisioning systems to facilitate
day-to-day tasks, customize the feature according to the demand, and add to our target, making vending
machine business very cost-effective.

3.3 Cloud System Security

It is imperative to maintain proper service when we primarily use web or cloud services. The analyses
of security from the various perspectives for sales points like vending machines are crucial[22, 23]. The security
measures taken for developing the system has been described below:
i. Users authorization: The credentials of vendors and admins are encrypted into the web application.
Advanced Encryption Standard-256 (AES-256) algorithm has been used to store the user's password in the
server.
ii. Customer authorization: OTP (one-time-password) system is utilized to do not have to store the
much data of the customer to authenticate into the mobile application. Each time the customer will pay out a
buy, they have to provide a digital payment PIN (Personal Identification Number). The benefit of this
mechanism is that if the cell phone is undermined, the aggressor can get into the application yet can't make any
payment and personal information.

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3.4. Process of security applied for this whole system, as it is using cashless payment
i. Digital payments: As our system uses the secure digital payment API of bKash, the security measures of
cashless digital payment are almost dealt with by the company. Therefore, as long as the user is authorized
and uses the personal account, the payment is highly secure.
ii. Secure Web communications: included SSL (Secure Socket Layer) in the system so that our web
application uses HTTPS to make sure the data traded on the web are secured.

3.5 Hardware Prototype

Arduino-based electronic components have been chosen to build our hardware prototype to interact
with the Vending Machine Controller. It obliges to send acknowledgement messages to the vending machine
controller every 200ms. Figure 11 is the block diagram of the vending machine hardware prototype that shows
how all the hardware components have been integrated.

Figure 11. Block Diagram of Hardware Prototype

3.5.1 ATmega 2560 Microcontroller

The ATmega2560, as shown in figure 12, is a low-power CMOS 8-bit microcontroller based on the
AVR enhanced RISC architecture. It contains a chip central processing unit (CPU), Random access memory
(RAM), Read-only memory (ROM), I/O unit, interrupts controller and so forth. In this manner, a
microcontroller is utilized for rapid signal processing operation inside an embedded system [24].

Figure 12. ATmega 2560 Microcontroller

3.5.2 Esp8266 Wi-fi module

The ESP8266 is a low-cost WI-FI microchip, with the capability of a full TCP/IP stack and
microcontroller, as shown in figure 13. This module permits microcontrollers to associate with a wi-fi system
and make essential TCP/IP connections [25].

Figure 13. Esp8266 wi-fi Module

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3.5.3 Light-emitting diode (LED)

A light-emitting diode (LED) in figure 14 is a semiconductor light source that emanates light when
electricity flows through it. Electrons in the semiconductor recombine with electron openings, discharging
energy as photons. The shade of the light is controlled by the energy required for electrons to cross the band
hole semiconductor [26].

Figure 14. Light-emitting Diode

Figure 15 shows that ATmega 2560 is used, which operates at 16 MHZ frequency, 256KB flash, 8KB
RAM is the master microcontroller (MCU), or the brain of the whole system peripherals are connected to it.
Esp8266 wi-fi module [27] is used for convenience and affordability compared to the SIM900,800 GPRS
module [28]. SIM Card wi-fi router has been used in this module to provide a wi-fi access point to connect
more than one device within a specific range, saving cost and working more efficiently. LED light represents
the locker of a real vending machine that has been used to simulate our method to determine if the locker is
open or not. Figure 15 shows the main components used in the prototype.

Figure 15. Components of Hardware Prototype

3.6 Prototype of Vending Machine

To simulate our hardware operation, we have developed a prototype vending machine with a metal
body and used transparent plastic as a locker cover, as depicted in figure 16. A set of electronic cabinet lockers
shown in figure 17(a) has been used. The front hook of the locker is attached to the transparent locker cover,
and the remaining part of the locker is attached to the metal body of the prototype vending machine.

Figure 16. Prototype of Vending Machine

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Figure 17(a). Electric Cabinate Locker Figure 17(b). RS485 Control Board

The Electric Cabinet Lockers are plugged in RS485 Control Board as figure 17(b), which connects the lockers
with the Arduino's power supply and controls the voltage supply to the lockers. As soon as customers purchase
specific products using Digital Payment through Mobile App, the payment record has been saved, and the
vending machine receives the request to dispense the ordered items. The status of specific lockers containing
ordered products will be updated from "off" to "on" in the database, as shown in figure 18.

Figure 18. Status of Lockers in Vending Machine

Moreover, Status "on" means the voltage is supplying to the specific lockers and status "off" means otherwise.
To dispense products by unlocking specific lockers, the status is persisted "on" for a certain period of 60
seconds. During the period, the microcontroller reads the database continuously through API, finds the lockers
with the status "on," and supplies the voltage to the As the electric locker can receive the voltage get opens
when the supplied voltage is passed to the intended lockers, which contain the ordered items. When the power
is turned off, the voltage supply is stopped, and the locker can be locked again.

4. RESULTS AND DISCUSSION

We used Arduino, and undoubtedly, Arduino is less expensive than Raspberry Pi. Nevertheless, the
cost was, by all accounts, not the only motivation to pick Arduino. To keep the simplicity of vending machine
design, we need a plug-and-play device that is available for service by turning ON and OFF switch any of the
time. We also used ESP8266, a low-cost WI-FI microchip that made the design simple but adequate for
production, ensuring high performance.
The mobile application we developed appropriately worked to select the products from the vending
machine. The digital payment system (bKash) we integrated was one of the most challenging parts of this work.
To make it fully functional, we went through the bKash API documentation and wrote the logic as per their
payment system requirements on the backend. As a result, a new user needs to agree with bKash only for the
first transaction and for the subsequent transactions onwards, they need to provide only a pin code which makes
the payment process hassle-free, convenient and fast for the users. The digital payment system (bKash) API
implementation worked for each transaction and stored the transaction data in the database storage. If there are
any failed transactions, it does not affect the database storage. An alert message is displayed on the app to show
that the transaction was not successful. After successful payment is made, the status of the LED is updated to
turn on. The Vending Machine controller checks the database periodically and detects the status of the LED.
As soon as it identifies the LED with status on, the LED turns on. In Figure 19, LED 2 and 4 is turned on after
a successful transaction representing the locker 2 and 4 is opened.

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Figure 19. LED Turned on After A Successful Transaction

Therefore, it signifies the locker is on in the actual vending machine and ready to dispense it to the
consumer. The LED status is updated to turn off within 2 to 3 seconds, indicating that the locker is closed.
Table 2. Test Result
Count Minimum (ms) Maximum (ms) Average (ms)

Get Product List 150 1400 2800 2100

Payment Process 150 4300 8300 6300

LED On (Locker Open) 150 1700 5500 2300

LED Off (Locker Closed) 150 1900 5750 3800

Table 2 summarizes the performance test result of 150 consecutive API calls. Figure 20 represents the
average response time of the API request calls. The average time to complete a whole purchasing process has
been depicted in Table 1. The user gets the list of products of a particular vending machine. The average time
takes 2100 milliseconds, mainly fetching from the database with a GET request. The user selects the products
from the list and presses the payment button. After providing the user payment pin, it takes 6300 milliseconds
to process the payment in the digital payment method system (bKash) and update the payment status on the
database.

Figure 20. Average Response Time of The Request Calls

As soon as the database updates with successful payment, the LED turns on within 2300 milliseconds
on average, the locker opens, and the machine dispenses the product. The system needs additional 3800
milliseconds to turn the LED off, which overlaps with the time used by the consumer to collect the order from
the vending machine. The result of the overall cycle is completed in 14500 milliseconds which can provide a
good buying experience.

Figure 21. Locker Opened After A Successful Transaction

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In addition, in the prototype vending machine, we simulated the purchasing experience as shown in Figure 21.
After a successful transaction with the bKash digital payment system using the mobile app, the specific lockers
have been opened to dispense the products to the customer.

5. CONCLUSION
In this paper, a presentation of an innovative IoT platform has been aimed to be supported, covering
a wide range of industries, devices and applications. We designed an intelligent application of vending machine
for our country Bangladesh, which will be pretty efficient and helpful for many aspects. This paper's novel and
cost-effective approach integrates mobile applications and payment gateway and securely purchases
smartphones with digital payment methods. This IoT solution will provide a new experience to the customers'
buying products at their convenience, is cost-effective, user-friendly, and easy to operate. Moreover, the same
application incorporates a digital payment (bKash) method that makes a trouble-free experience, unlike the
traditional approaches. Thus, this innovation can be extended significantly in various industries to take it to the
next level of technological advancement in IoT sectors.

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BIOGRAPHY OF AUTHORS

Wahidul Alam received his MSc in Advance Computing with Full Funded Chinese
Govt. Scholarship from the Tsinghua University, Beijing, China 2018. He is a Senior
Lecturer & Program Coordinator at the Department of Computer Science and
Engineering, Faculty of Science, Engineering and Technology, University of Science
& Technology Chittagong. His research interests include Internet of Things, Machine
Learning and Blockchain.

Dhiman Sarma is presently the Department Chair and Assistant Professor of Computer Science
and Engineering at Rangamati Science and Technology University, Bangladesh. He received his
MSc in Information and Communication Systems Security (ICSS) from the Royal Institute of
Technology [KTH], Stockholm, Sweden. He is a PhD fellow at Chittagong University of
Engineering and Technology, Bangladesh. His research interests span across Cyber Security,
Machine Learning, Sentiment Analysis and IoT.

Rana Jyoti Chakma is an Associate Professor in the Dept of Computer Science and Engineering
at Rangamati Science and Technology University, Bangladesh. He obtained his Master's degree
in Computer Science from the University of New South Wales (UNSW), Sydney, with a
scholarship from the Australian Govt. He has more than 26 years of working experience both in
industry and tertiary education. He has teaching experience in New Zealand, United Arab
Emirates, and Bangladesh. His research interest includes AI. ML and IoT. He authored two
textbooks in ICT and published numerous articles in various journals and magazines.

Mohammad Jahangir Alam completed post graduation (MSc in CSIT) in 2008 from Southern
University Bangladesh, Chittagong. He is an Assistant Professor and Coordinator at the
Department of Computer Science and Information Technology in Southern University
Bangladesh, Chittagong. He has published more than 22 technical research papers in reputed
national, international journals and conferences. His research interests include Cloud Computing,
Mobile apps design, Health Informatics, Bid Data analytics among many other fields.

Sohrab Hossain received his MSc in Data Warehousing and Data Mining with Merit from the
University of Greenwich, London, UK in 2008. Currently, he is a PhD fellow at Chittagong
University of Engineering and Technology, Bangladesh. He has published more than 20 technical
research papers in reputed national, international journals and conferences. His research interests
include Natural Language Processing, Sentiment Analysis, and Medical Sentiment Analysis.

Internet of Things Based Smart Vending Machine using Digital Payment System (Wahidul Alam et al)

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