MALVERN, PA -- USA Technologies said it has made a mutually exclusive agreement with Setomatic Systems (Farmingdale, NY) that will accelerate cashless payment adoption in the self-service laundry market. Setomatic is a pioneer in the development of electronic payment systems for commercial laundry equipment.
The pact will combine Setomatic's SpyderWash technology with USAT's ePort Connect service to bring cashless payment value to laundry operators as consumers increasingly opt to use their credit/debit cards and mobile phones to pay for laundry services.
Under the terms of the three-year agreement, USAT, through its ePort Connect service, will act as the exclusive service provider for all credit and debit card processing for Setomatic's SpyderWash system. It also will market its ePort Connect service in the United States laundry market exclusively through Setomatic. In addition, the two companies will begin the transition of several thousand existing Setomatic's cashless connections to USAT within the next few weeks.
The two companies also are joining forces to increase cashless payment adoption in the largely untapped coin-operated commercial laundry and multi-housing laundry markets. According to the Coin Laundry Association, the U.S. commercial laundry industry consists of 30,000 to 35,000 laundromats; Setomatic estimates that these represent about 2.5 million commercial washers and dryers. The CLA estimates gross revenue in the laundromat market at nearly $5 billion annually. And there may be as many as 3.4 million pieces of self-service equipment in the multi-housing market.
"We believe the laundry market is still at the early stages of credit/debit card adoption, so this is a great time to join forces with USAT in order to bring SpyderWash customers the most value as they transition their machines to cashless payment," said Setomatic president Michael Schantz. "Our historical information already shows us that cashless helps build incremental revenue for laundry operators."
Setomatic's Spyderwash is a wireless payment system that accommodates credit, debit, loyalty cards and NFC-enabled mobile payment, as well as coin. CLA's magazine, Planet Laundry (August, 2012), selected Setomatic as its "industry leader," explaining that Setomatic's SpyderWash system has changed the face of the self-serve laundry industry.
USAT's ePort Connect service tailors payment services for the needs of the unattended, small-ticket market. It provides cashless and contactless payment acceptance and processing at a simple, competitive blended transaction rate, 24/7 customer service, Web-based reporting and new consumer engagement services such as loyalty programs.
"This new relationship is one example of the work we have had underway to leverage our leadership in vending to expand and diversify our ePort Connect service base," said USAT chief executive Stephen P. Herbert. "The SpyderWash platform aligns extremely well with our service, and by joining forces, we believe we can increase cashless payment adoption in the laundry market with greater speed and efficiency."