The Business Case for Going Cashless in Laundromats

Transforming coin-operated laundromats into modern, efficient, and profitable businesses

Explore the Benefits

Introduction

The laundry industry is experiencing a digital transformation. In Australia and around the world, laundromat owners are increasingly turning away from coins and embracing cashless payment systems. While customers appreciate the convenience, the biggest winners are often the business owners themselves. Going cashless is not just a trend, it is a long-term business strategy that improves efficiency, reduces risk, and maximises profits.

This article explores the costs, benefits, and operational advantages of adopting cashless payment systems in laundromats, along with practical steps owners can take to make the switch.

Why Laundromats Are Moving Away From Coins

Security Concerns

One of the biggest drawbacks of coin-operated laundromats is theft. Cash boxes attract break-ins, and in some cases, criminals cause more damage trying to steal coins than the value of the money itself. Going cashless removes this target.

Rising Banking Costs

Banks in Australia charge fees for depositing coins. Owners must spend time collecting, counting, rolling, and transporting coins to banks, adding hidden costs to operations.

Customer Convenience

Modern customers rarely carry coins. By offering cashless options, owners align with the way people already pay in daily life — through cards, phones, or digital wallets.

The Financial Impact of Going Cashless

Cost of Installing Systems

The upfront investment depends on the size of the laundromat:

  • Card readers: $500–$1,500 per machine.
  • Mobile app integration: setup fees plus ongoing service subscriptions.
  • Kiosk or centralised system: $5,000–$20,000 depending on complexity.

While these numbers may seem high, owners often recoup costs quickly due to increased revenue and reduced theft.

Increased Revenue Potential

Studies show that when customers use cards or apps, they spend more. Tap-and-go users are less price-sensitive, and loyalty apps encourage repeat visits.

Reduced Operational Costs

No more:

  • Paying staff to empty coin boxes.
  • Banking fees for coin deposits.
  • Replacing vandalised coin machines.
Over time, these savings contribute directly to profitability.

Systems and Providers for Cashless Laundromats

Popular Options in Australia

  • Bubblepay: Provides end-to-end cashless laundry payment solutions, including card readers and app integration.
  • EFTPOS Providers: Local banks and fintechs offer contactless card readers adaptable for laundromats.
  • Custom Laundromat Apps: Some operators invest in proprietary apps to control branding and loyalty features.

Choosing the Right System

Owners must weigh:

  • Cost vs revenue-sharing models.
  • Customer base demographics (students, families, tourists).
  • Features like loyalty programs, cycle reminders, and machine monitoring.

Operational Benefits of Cashless Systems

Reduced Theft and Damage

Without coin boxes, laundromats are far less attractive to thieves. Owners save on repairs, insurance claims, and downtime caused by vandalism.

Easier Management

Cashless systems provide real-time transaction data. Owners can track revenue instantly, identify peak usage times, spot underperforming machines, and automate financial reporting.

Remote Monitoring

Many providers allow owners to manage machines remotely, adjusting pricing, checking machine status, and reviewing payments through cloud dashboards.

Faster Transactions

Cashless systems streamline customer flow. Faster payments mean reduced waiting and improved satisfaction, particularly in busy urban laundromats.

Customer Advantages That Drive Business Growth

Owners benefit when customers enjoy smoother experiences. Cashless laundromats provide:

Flexibility

Customers pay with debit, credit, mobile wallets, or reloadable cards.

Loyalty Rewards

Digital systems make it easy to run promotions like "wash 10 loads, get 1 free."

Accessibility for Tourists

Accepting international cards widens the customer base.

Risks and Challenges of Going Cashless

Technology Dependence

Cashless systems rely on internet connectivity. Outages can disrupt payments, though most providers offer backup solutions.

Exclusion of Cash-Only Customers

A small percentage of older customers may still prefer cash. To address this, many owners transition gradually by offering both options before fully going digital.

Ongoing Fees

Some providers charge subscription or transaction fees. Owners should compare long-term costs before committing.

ROI: How Long Does It Take to Recover Costs?

$20,000
Installation Cost

For a medium-sized laundromat with 20 machines

$5,000
Annual Operational Savings

Reduced theft, banking fees, staff time

10-15%
Revenue Increase

Due to card/app convenience

Estimated payback period: 12–18 months

After this, cashless systems generate pure profit.

Case Study: Laundromats in Urban Australia

30% decrease in theft and vandalism

after removing coin boxes.

20% higher customer retention

due to app-based loyalty rewards.

Improved customer satisfaction

because of faster transactions.

Steps for Laundromat Owners to Switch Successfully

1

Research Payment Providers

Compare costs, customer reviews, and features.

2

Run a Hybrid System

Start by offering both cash and cashless options. This allows customers to adapt gradually.

3

Train Staff and Educate Customers

Post signage explaining how to use new systems. Offer free demonstrations during the transition.

4

Promote the Change

Advertise your cashless upgrade on Google Business Profile, local directories, and social media. Highlight safety, convenience, and loyalty rewards.

5

Monitor and Optimise

Use transaction data to adjust pricing, run promotions, and track machine usage.

The Future of Cashless Laundromats

The laundromat of the future will likely be:

  • Fully app-integrated, with customers booking machines online.
  • Subscription-based, offering unlimited washes for a monthly fee.
  • AI-managed, using smart data to predict demand and optimise pricing.

Going cashless is not just about removing coins. It is about transforming laundromats into modern, data-driven businesses.

Conclusion

The business case for going cashless is clear. Laundromat owners who adopt digital payment systems benefit from reduced theft, lower operating costs, higher revenue, and happier customers. While the initial investment may seem significant, the long-term return on investment is compelling.

In a world where fewer people carry cash, the laundromats that embrace innovation will not only survive but thrive.

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