A pneumatic product vending and delivery system is provided which preferably uses an existing product vending machine as a storage and loading device for use in a pneumatic vending and delivery system along with an interface unit in place of the vending machine door. A product dispensing terminal is provided that is connected by the delivery tube of a pneumatic conveyor from the storage and loading device, which has a loading mechanism configured to load a product dispensed by the dispensing mechanism into the delivery tube. The pneumatic conveyor includes a back pressure source operable to apply reverse pressure to a product in the delivery tube to gently slow a product approaching the product dispensing terminal through the tube. A gate is selectively moveable into and out of the path of a product proximate the outlet end of the delivery tube to stop a product slowed by the back pressure source and to release the stopped product for delivery to a customer at the product dispensing terminal. A pressure control valve is connected to the output end of the delivery tube to control the release of air from the delivery tube ahead of the product to gradually decelerate the product approaching the dispensing terminal. The loading mechanism includes a moveable member connected at one end to a blower and having an open end configured to receive a product dispensed by the dispensing mechanism and to seal the inlet end of the delivery tube with the received product positioned between the blower and the tube. The moveable member is preferably a bucket shaped element pivotally mounted to move between an open position for receiving a product dispensed by the dispensing mechanism and a closed position sealing the inlet to the deliver tube.