How do laundromat owners switch to cashless payments?

 Switching a laundromat from coins and notes to cashless payments isn’t just about tapping a card reader onto a machine. It’s a shift in how owners attract, serve, and keep customers. In fact, many Australian laundromats that have gone cashless report higher average spends and fewer headaches with maintenance and security.

Why are laundromats moving to cashless?

The main driver is customer behaviour. Fewer people carry coins, and contactless payments are now second nature. For laundromat owners, going cashless means:

  • Less time emptying and banking coins

  • Lower risk of theft or vandalism

  • Higher convenience for customers who expect tap-and-go options

  • More accurate reporting on machine usage and revenue

As one Melbourne operator put it: “Once we removed cash, we stopped worrying about coin jams and started focusing on customer service.”

What options do laundromat owners have for cashless payments?

Different models work depending on budget and customer base:

  • Tap-and-go terminals – Direct integration into each machine or via a central kiosk.

  • Mobile app systems – Customers load credit via an app and pay digitally, often bundled with loyalty features.

  • Hybrid systems – Both coins and cashless options, easing the transition for older customers.

This echoes the choice architecture principle from behavioural economics: if you make the modern option easier, people naturally migrate to it.

How do owners manage the switch without losing customers?

The fear for many is alienating older customers. But behavioural science shows that people adapt quickly if the benefits are clear and friction is reduced. Successful laundromats usually:

  • Phase in gradually – Start with hybrid systems.

  • Communicate benefits – Signage highlighting “No more coins needed!” or “Earn rewards via app.”

  • Offer small incentives – Free credit for first-time app users taps into reciprocity.

  • Show social proof – Share testimonials or stats (“80% of our customers now use tap-and-go”).

This strategy leans on Cialdini’s Consistency and Social Proof principles: people want to do what others are doing, and once they start, they stick.

What are the hidden advantages for owners?

Beyond convenience, cashless opens doors to smarter business management:

  • Data insights – Track machine popularity and peak hours.

  • Dynamic pricing – Adjust costs for peak vs off-peak to maximise revenue.

  • Reduced maintenance – No more coin jams or bill acceptor repairs.

  • Loyalty and upsell opportunities – Apps can nudge customers to add drying cycles or buy detergents.

An example is Sydney’s self-service laundromats, where operators use payment apps not just for transactions but for customer engagement, like push notifications for discounts during slow hours.

Are there risks or downsides?

Yes, but they’re manageable:

  • Transaction fees – Typically offset by increased revenue per wash.

  • Customer pushback – Mainly from older demographics, which hybrid systems can solve.

  • Tech reliability – Requires strong Wi-Fi or 4G backups.

In practice, most operators find the long-term gains outweigh these hurdles. According to the Reserve Bank of Australia, contactless payments now make up more than 75% of in-person transactions—so laundromats are following where the market has already gone .

FAQ

Do cashless laundromats still accept coins?
Many start hybrid, but the trend is moving toward fully cashless as customer habits change.

What if the system goes offline?
Most providers offer offline fallback modes or 4G backups, so payments continue without disruption.

Will older customers adapt?
Yes, especially if changes are phased in with clear signage and optional support.

Switching to digital payments is less about technology and more about customer psychology. By making cashless the default, laundromat owners reduce friction, increase revenue, and future-proof their business. For those weighing up the business case, this guide on cashless laundromat payment outlines the long-term advantages in detail.

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