Japanese toymakers are upgrading their iconic capsule vending machines to meet surging demand. The contraptions are growing in popularity among children and adults alike.

The machines are typically cash-operated, randomly dispensing plastic capsules containing small toys for a few 100 yen coins.

But Bandai's new device also accepts payments from both Japanese and foreign smartphones. The machine's production costs are low, as it only needs a QR code to operate. Bandai plans to install them at 100 locations across the country by next April.

"We think everyone will enjoy the new machines," said Ikarashi Tatsushi, a Bandai sales official. "We are hoping to take them overseas as well."

T-Arts plans to introduce new dispensers offering instructions in nine languages. The firm says it will install them at airports, train stations and shopping malls.

Sales from capsule machines have soared in recent years, hitting a record high of over 300 million dollars in the business year that ended in March. The growth is attributed to the release of increasingly unique and obscure toys, which have caused a stir on social media, and rising popularity among foreign visitors.