Heartland Payment Systems Inc. is attempting to capture some coin in what it views as one of the final frontiers of micropayments–commercial laundry machines.
The Princeton, N.J.-based card processor last year introduced and piloted its WaveRider Laundry System, which enables laundry-facility operators to accept credit and debit cards on machines equipped with card readers similar to those found at gas station pumps.
The system also enables consumers to track machines online to view which ones are available for use. The readers are attached to the machines. Pricing for the system varies depending on the services provided, according to a Heartland spokesperson.
Heartland on June 6 announced an upgrade to its laundry system, which enables operators to manage machine deployment and facilities online from a remote location.
This version “is mostly about a much easier installation and setup for the laundry operators so that they can speed up the deployment of these devices because consumers are really demanding an ability to pay with something other than quarters,” Ron Farmer, Heartland executive director of micropayments, said in an interview.
Heartland last year promoted its system to interested laundry operators at trade shows. Since Jan. 1, laundry operators have deployed some 2,000 machines equipped with Heartland’s system, Farmer said. The company plans to more than double that total by the end of the year.
Farmer estimated there are some 4.5 million laundry machines in the U.S. Depending on size, a single Laundromat could generate between $15,000 and $200,000 in revenue per year, according to the Coin Laundry Association.
Heartland’s attempt to capture payments at laundry machines falls in line with how others have done the same with vending machines, Adil Moussa, an analyst with Boston-based Aite Group LLC, told PaymentsSource in an interview.
“Vending machines, parking meters and laundry machines all provide a good opportunity to capture micropayments,” he added.
Farmer declined to reveal Heartland’s partner operators, but he said they are companies that have outsourcing deals with apartment buildings. The operator strikes a deal with the property manager to determine the revenue split from the machines.
Heartland declined to reveal financial terms with operators.
Heartland is providing a proprietary card reader, software and card-processing services with the system, Farmer said. That package enables the company to offer the service as a lower price than others that offer products piecemeal.
“One of the problems that have hindered [services] like this in the past” is that issues involve different parties such as the hardware provider and card processor, Farmer said. “In our case, one call gets it all [done], and I think that puts us at an advantage,” he said.
Moussa agreed.
“If you’re streamlining three to four different operations for that merchant, you’re really making the merchant’s life easier,” he said.
Laundry operators may choose to include coin acceptance on machines.
“We’re seeing that about 50% of the operators that are deploying these machines do it card only, and the other 50% doing card and coin,” Farmer said. Heartland includes coin acceptance for unbanked consumers.
Heartland’s system also can track coin acceptance and alert operators when collection is needed,” Farmer said.
