What features should laundromat owners look for in a payment system?
Laundromats can be lucrative business ventures that allow you to collect passive income while offering a crucial service to the community. Depending on the customer demographic, location and business size, laundromats can offer several popular payment options.
If you’re trying to figure out the best option for your business, you’ve come to the right place. This guide from Setomatic Systems highlights the top features owners should look for when choosing a laundry payment system.
What Are the Best Features to Look for in a Laundry Payment System?
More laundromats are adopting cashless transactions because of their unmatched convenience. When choosing a laundry payment system, some things to consider are who the manufacturer is, how long they have been offering laundry payment systems and whether their system offers the flexibility and features your laundry needs to be successful. Here are some of the top features to look for:
Payment Flexibility
Laundry payment systems that offer a wide range of cashless options have a larger capacity to cater to customer preferences and improve user experience. These options are also especially beneficial for certain demographics, like younger customers who may be more likely to rely on their smartphones. One survey on 2,500 Americans found that 80% of Gen Z participants use mobile wallets. The vast majority of all payment transactions in North America are Tap-and-Go contactless credit cards. As such, it’s important to make sure your system has this capability.
Payment flexibility is especially important at a laundromat, where customers want to pay the same way they pay at the grocery store or any big box retailer.
- Tap-and-Go contactless credit/debit cards
- Mobile payment options like Apple, Google and Samsung Pay
- Contact credit/debit cards
- Accept loyalty cards
Remote Management Capabilities
One of the key benefits of getting into the laundry business is the capacity for passive income. Payment systems with remote management features give you and your customers maximum convenience. For example, some card payment systems allow you to monitor laundromat usage and revenue in real time while operating from a remote location. You can adjust pricing and introduce discounts without leaving your couch. Here are some examples of remote management features to look out for:
- Remote refund and credit processing
- Centralized dashboard for data insights
- Loyalty programs like 10th wash free
- Manage loyalty cards
Machine Compatibility
It’s important to look for a payment system that fits into your infrastructure and doesn’t inconvenience your customers when handling payments. Look for universal systems that are compatible with any washer or dryer model, so payments are seamless for your customers.
Customer Support and System Integration
Payment systems should make things more convenient for your customers, so you don’t want an overly complicated system. Find one that offers reliable customer support and helps you solve customer issues efficiently. User-friendly interfaces make it easier for customers to complete their transactions, improving their experience and helping them remain loyal to your laundromat.
Pricing Control
Laundry payment systems should make pricing control easy. Choose a system that integrates with the washer controls and follows the settings on your washer. You do not want your payment system to take over the washer controls, as this will very often stop cycles from operating as the washer intended. Here are some of the features to look for:
- Pricing for different machines: Payment systems that allow you to set prices according to machine size or model. Many stores can have several brands, so make sure your payment system is compatible with all of them.
- Automate loyalty and bonuses: Look for a solution that makes it easy to roll out different loyalty systems to keep your customers coming back. Even if you do not offer a loyalty card, your system should be able to offer loyalty bonuses like free wash programs with your customer's credit card.
- Cycle modifiers: Payment systems should have the capacity to allow you to charge for common upselling like super-wash, hot water and other add-ons. This feature also makes it easier for customers to modify their loads according to their preferences for clothing types. This drives additional revenue to your laundry.
- If you own multiple laundromats, it’s important to look for a payment system that can be used across many locations seamlessly. Reporting and analytics should be simple to access across all locations.
Modern payment systems provide you with detailed reports to help you make informed decisions. These reports highlight everything from customer visit frequency to promotion effectiveness and machine revenue and activity. Here are some reporting and analytics features to look for:
- Real-time updates: Systems that offer live revenue updates and showcase active machines and errors help you manage your business more easily.
- Machine performance: Reporting and analytics systems that allow you to track your machine’s performance can make it easier to keep them in peak condition and set repairs and maintenance during idle time.
- Time analysis: Time analysis can give you insights into weekly trends and heatmaps, helping you spot peak hours and common slumps. You can then offer promotions during low-traffic hours to fill out those gaps.
- Multi-store benchmarking: If you own multiple laundromat locations, payment systems that come with reporting tools can help you manage all locations from one account.
Security and Fraud Prevention
Security is the most important feature to look for in a laundry payment system. It’s a nonnegotiable that protects both business owners and customers. Look for a payment system that offers data protection to keep your customers’ personal information safe. Customers will feel more confident supporting your business if you’ve taken steps to protect their financial data and offer them secure payment methods.
Payment systems with fraud detection features can help add an extra layer of security to your laundromat business, protecting sensitive information from potential breaches and prying eyes. Look for an option that integrates directly into your washers and dryers. Systems that offer contactless laundry payment options like tap-and-go also give your customers a safer alternative to carrying cash.
What Are the Different Types of Laundromat Payment Systems?
There are three main categories of laundromat payment systems — coin-based, loyalty card (can be loyalty card only or Modern Day Card Only) and hybrid. Each one offers unique benefits depending on the kind of laundromat you own, the location and the size. Here’s a breakdown of the different types of laundromat payment systems:
Coin-Operated Machines
Coin-operated machines are simple, old-school laundromat systems that require customers to insert coins to use. They’re inexpensive to install and don’t require advanced setup steps. Customers simply insert coins to use the machines.
The downside of coin-operated machines is that they aren’t as convenient. If customers don’t have coins on them, they can’t use the machines. Owners also need to employ more staff for the ongoing cash handling. Constant coin jamming is also a common problem that causes customer frustration and calls for more staff support. Coins also hold a higher risk for theft and vandalism, so business owners will need to invest more in store security. Coins are also more expensive to handle, as banks charge fees for handling a great deal of coins.
Loyalty Systems
Loyalty card systems can be broken into two categories.
- Your typical “loyalty card” only system, where the customer must purchase a card that can only be used in that laundry. They must go to a kiosk to add value to that card and use it.
- The “Modern Day Card Only” laundry will also use loyalty cards, however, the customer is not forced to buy a loyalty card, as they can also use their own credit/debit card, Apple/Google or Samsung Pay at the washers and dryers. The big advantage here is that you are not forcing the customer to have to purchase a loyalty card that can only be used at your store.
Here are the key benefits of laundromat card payment systems:
- Improves customer experience: The tap-and-go nature of card payment systems means fewer jams and no out-of-change moments. Customers can also get digital receipts for added convenience. It also makes multi-cycle bundles easier and allows companies to provide birthday credits and bonuses with ease.
- Boosts revenue growth: Card payment systems make upselling for cycle modifiers like extra rinse and super wash more accessible. They also reduce customer walkouts, especially among demographics who are more likely to carry their card instead of cash.
- Offers customers their preferred method: Research shows that 76% of customers prefer businesses that accept card payments, and 58% of people are more likely to spend the most when there’s a card payment option. These systems are mutually beneficial for businesses and customers.
- Reduces labor costs: Laundromats that implement card payment systems can save on labor costs by handling less cash. No coin jams or on-site cash refunds call for fewer staff.
- Improves security: Card payment systems mean less cash on the premises, which can help reduce theft risk and deter criminals. Since every payment is logged automatically, it also makes it easier to investigate disputes and prevent staff mismanagement.
Hybrid Systems
Hybrid systems include a range of payment types, which allow people to pay everywhere they go, including coins. They maximize flexibility and convenience for customers and also optimize customer reach by offering options suitable for tourists, unbanked users and tap-to-pay users. Customers who are transitioning toward contactless options also enjoy the smoother transition that hybrid models offer.
Hybrid payment options give customers more freedom and reduce walkaways from inconveniences. For example, if a customer doesn’t have coins on them, they can simply use their card or mobile phone to make the payment instead of leaving.
How to Choose the Right Type of Payment System for Your Laundromat Business
Choosing a laundry payment system is crucial because customers value convenience. With the right payment options, customers are more likely to come back. Data shows that laundromats have had a 94.8% success rate over five years, making them a stable business option — so, it’s important for owners to think about the best payment option for their establishment.
There are several factors to consider when choosing the best laundry payment system. Laundromats serve a range of demographics, such as college students, truckers and tourists. Understanding your demographics is important when making your decision. Older clients may prefer cash, but younger customers may find mobile and card payments more convenient. If your laundromat is set in a busy city, then you should consider contactless options, but laundromats set in rural areas may see more coin payments.
Since there are so many customer preferences, it’s best to offer many options to satisfy a wider range of groups. Bringing in as many options as possible can help your customers reap more rewards, like bonuses from credit card pay, while also offering them other methods, like coins.
It’s also essential to consider the type of business you’re running. If you’re a large business offering bulk laundry, consider offering as many options as possible to suit your larger demographic. Smaller laundromats like those set in small apartments can get away with old-school coin machines but would still benefit from offering more options.
The Right Payment Systems Are Crucial for Laundromats to Succeed
With so many payment options, it’s crucial for companies to select the one that best suits their customer base and business dynamics. Look for features like payment flexibility, remote management and customer support to offer maximum convenience to your clients. By taking these features into account, your laundromat will be able to provide better service, helping you build a more consistent and loyal customer base.
This story was produced by Setomatic Systems and reviewed and distributed by Stacker.
