CHICAGO — The self-service laundry industry has long been synonymous with quarters. For decades, the familiar rhythm of coins dropping into washers and dryers defined the laundromat experience for both operators and customers.
Today, that model is evolving.
Across the United States, laundromat owners are navigating a period of transition as payment systems offering non-coin or cash options — including mobile apps, credit and debit cards, and loyalty cards — steadily gain ground. Yet coins and cash haven’t disappeared, and for many operators remain an important part of the revenue mix.
The central question facing the industry is no longer whether cashless payments will play a role in laundromats, but how large that role will become — and how operators should balance the needs of diverse customer bases.
To explore the issue, several payment technology providers and industry suppliers shared their perspectives on several key questions shaping the future of payment acceptance in self-service laundries.
Part 1 of this article addressed how the revenue mix has changed for laundries and examined the type of payment configurations currently being installed. Let’s continue:
Q: Why are operators adding cashless options?
When operators expand their digital payment capabilities, suppliers say the reasons are remarkably consistent. Operational efficiency is one of the biggest drivers, with Paresh Patel, founder and CEO of PayRange, calling it the “first unlock.”
“Eliminating coin collection, counting, change machines, and related maintenance simplifies the business significantly,” he says.
Patel also highlights the value of data generated by digital systems.
“Digital payments create a data layer,” he says. “Operators gain visibility into machine usage, peak times, pricing performance, and customer behavior.”
Carlos Sessarago, vice president of sales for Airwallet, says reduced labor can be an immediate benefit that operators notice.
“Operators are, on average, reducing coin collection time from five-plus hours weekly to under an hour,” Sessarago says. “Real-time tracking also allows operators to optimize pricing and identify underperforming machines instantly.”
Erik Nemes, distributor sales manager for Cents and Laundroworks, says reduced coin handling is a frequent starting point for operators exploring cashless options.
“Collections are time-consuming and physically demanding, and in multi-location operations, they can eat up an enormous amount of an operator’s week,” he says. “Multiply one store’s collection time across four or five locations and it becomes a serious quality-of-life issue.”
Security is another factor: “Less cash sitting in machines and fewer open-floor collection runs means a safer operation.”
Marketing capabilities also play a growing role.
“This one surprises some operators going in, but it becomes one of their favorites,” says Nemes. “A loyalty card or app creates an actual customer relationship, not just a transaction. Reload bonuses, promo codes, win-back campaigns, free-dry promotions — none of that is possible with coin.”
John DiStefano, vice president of sales for Paystri, says competitive pressure is another driver: “The top three reasons [for adding cashless] we see are reduced coin handling/labor, competitive positioning, and pricing flexibility (including dynamic pricing and remote changes).”
Pricing flexibility is often overlooked but extremely powerful, according to Steve Marcionetti, president of Card Concepts Inc. (CCI).
“Cashless systems allow operators to adjust pricing remotely, respond to utility increases, implement time-of-day pricing, and maintain margins without physically visiting every machine,” he says. “Even something as simple as eliminating quarter-based pricing constraints creates meaningful flexibility.”
Customer expectations ultimately drive many decisions, says John Kelly, vice president of sales for Setomatic Systems: “Customer demand for convenience, creating loyalty, and reducing coin-collection time are the three most common reasons I hear from owners.”
“I’d say the top three (reasons) can be found under ‘Other’: rising machine vend prices, seeking alternatives to low-denomination quarter, and America’s love affair with credit/debit cards,” says Butch Bruner, president of Imonex Services.
Doug Goldstein, executive vice president of ESD and CEO of Greenwald Industries, also notes the role of marketing, saying the reasons to add or expand cashless options “are loyalty and marketing tools and customer convenience, to market to a broader audience.”
Q: What objections or concerns do operators have about transitioning away from coins/cash?
Despite the advantages of digital payment systems, many operators remain cautious about moving away from coins, the technology providers and suppliers say.
“The most common objection is the belief that cash is free because there is no transaction fee,” Patel says. “In reality, cash is one of the most expensive forms of payment (once you account for equipment, collection, and losses from theft).”
Focusing solely on processing fees, he says, can obscure the bigger picture: “Digital payments often increase overall revenue because customers spend more when the experience is frictionless.”
Nemes says many operators worry about customer acceptance: “‘My customers won’t go for it’” is by far the most common concern. But he says those fears are often overstated.
“Operators who communicate the change in advance, staff up during the transition, and keep some flexibility for coin customers … find that pushback is minimal and short-lived,” Nemes says.
Another concern involves system reliability: “Offline functionality is a must-have, not a nice-to-have,” he adds.
Upfront investment costs are another hurdle.
“Even if the long-term operational benefits are clear,” Marcionetti says, “the initial expense can feel significant.”
He says emotional factors also play a role: “Coin has worked for more than 50 years in this industry. Moving away from it requires a change in workflow, mindset and daily operations.”
Robert Mattocks, regional sales manager for Airwallet, says operators often present the fear that older or cash-preferred demographics will leave for competitors.
“Some owners express concern about adaptation within certain client demographics,” DiStefano shares.
Certain operators simply want to ensure they can still serve cash-dependent customers, according to Goldstein. “(Their concern is) that they can’t ignore a large customer segment who want coin and cash.”
Installation cost is another common hesitation, according to Kelly.
“The most common objection is the cost associated with adding another payment option besides coin,” he says, but in Setomatic’s 30-plus years of selling credit card systems used directly on washers and dryers, “we see that the costs associated with installing these systems are quickly recouped.”
Bruner takes a more skeptical view of the economics that worry laundry owners.
“They are concerned discounting every customer transaction by 10-20% and replacing loyalty card readers every seven years isn’t worth saving one hour’s time collecting coins,” he says.
Check back Tuesday for Part 3: Comparing mobile and open-loop (tap-to-pay credit/debit) payment usage to proprietary store cards, and looking ahead to 2031 and coin’s role in self-service laundry payment then
If you missed Part 1, you can read it HERE
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
