Global Self-Service Laundromats: From Coins to Smartphones
The self-service laundromat industry is growing rapidly worldwide, with innovations in payment systems supporting this growth. Traditionally known as "coin laundromats," these establishments originally operated by inserting coins, but now we've entered an era where everything can be done with just a smartphone.
Today, we'll examine the evolution of payment systems in self-service laundromats in the United States and South Korea, and discuss the unique opportunities and challenges in the emerging Vietnamese market.
United States: Journey from the Land of Coins to Digital
Surprisingly, in the birthplace of self-service laundromats, many establishments in the US still maintain coin payments. The traditional method of inserting quarter coins (25 cents) has remained the standard. However, even the US couldn't avoid the winds of change:
- Early 2000s: Some stores introduced proprietary card systems
- Mid-2010s: Emergence of Bluetooth-based mobile payment solutions like PayRange
- 2023: Approximately 26% of all locations supported mobile payments (with proprietary apps developed by Huebsch, Speed Queen, etc.)
- 2024: Increase to 36% of locations supporting mobile payments
PayRange was particularly innovative, creating a solution that maintained the existing coin slot while adding a small Bluetooth device to enable smartphone payments. This demonstrated that digital transformation was possible without replacing existing washing machines.
A notable aspect of the US market is the coexistence of various payment methods. The digital divide between generations is distinct, with younger people preferring mobile payments while older generations still prefer coins. As a result, many establishments have adopted a 'hybrid' approach.
South Korea: Rapid Digital Transformation Centered on Kiosks
The self-service laundromat market in South Korea is a relatively late entrant but has digitalized at an astonishing pace.
When coin laundromats first appeared, they used 500-won coins for payment, but now the mainstream method is paying with cards or points via kiosks.
In just 10 years, South Korean self-service laundromats achieved almost complete digital transformation. This was thanks to Koreans' high acceptance of digital payments and well-established card/mobile payment infrastructure.
Characteristics of the Korean market include:
- Preference for centralized kiosk systems (vs. individual machine payments in the US)
- Basic implementation of membership and point systems
- Franchise-led standardized payment systems
A prime example is Wash Friends Korea, which supports various easy payments from card payments to E-Wallet payments through their 'PayOT' kiosk. This smart system even sends notifications via KakaoTalk when the laundry is complete.
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| Kiosks Installed at Wash Friends Locations |
What Will Future Self-Service Laundromat Payment Systems Look Like?
Future laundromats are evolving beyond simple "laundry spaces" into technology-intensive smart spaces. The same goes for payment systems:
1. Biometric Payments Soon we may enter a world where neither wallets nor phones are necessary. Standing in front of a washing machine might enable facial recognition for simultaneous identity verification and payment. Establishments like Deluxe Laundry in the US are already preparing facial recognition-based entry and payment systems.
2. Voice Interfaces A hands-free experience could be implemented where voice commands like "Turn on washing machine number 3" control the machines and lead to payment. This technology could significantly improve accessibility for the visually impaired and elderly.
3. AI-Based Personalization Artificial intelligence could analyze customers' laundry patterns to provide customized discounts or recommendations. Smart marketing like "It's been two weeks since your last visit, here's a 10% discount coupon" would become possible.
4. IoT and Automation Washing machines connected to the cloud could enable automatic recognition and automatic payment without users needing to operate anything special. This would be similar to today's unmanned convenience stores where payment is automatically processed just by taking items out.
Vietnam: Land of New Opportunities
Vietnam's self-service laundromat industry is just beginning to emerge. As of 2025, there are only about 30 self-service laundromats operating nationwide.
Unique Characteristics of the Vietnamese Market
- Absence of coin culture - Vietnam is a society that doesn't use coins in daily life. Therefore, the concept of a 'coin laundromat' itself was unfamiliar.
- Low card penetration rate - Credit card usage is low, and most digital payments are made through QR code-based mobile apps.
- Low familiarity with unmanned services - In Vietnam, where staffed service is common, there is still low trust in unmanned systems.
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| Wash Friends: Applying Coin Changers and QR Transfers in Vietnam (2024) |
Wash Friends' Challenges in the Vietnamese Market
Wash Friends operated hybrid self-service laundry stores in Vietnam in 2024, combining coin methods with QR transfers. Through this process, we learned a lot:
- Vietnamese people highly valued intuitiveness and reliability in payment systems.
- QR code payments were the most widely accepted method, but connection instability issues occurred occasionally.
- Simple guidelines for first-time users were essential.
Since 2025, we have been developing more optimized payment systems in cooperation with local Vietnamese payment institutions. Our goal is to align with Vietnam's digital payment culture while making the self-service laundry experience smooth.
Challenges and Opportunities in the Vietnamese Market
Currently, most self-service laundry brands entering Vietnam often bring operational models directly from Thailand or other Asian countries. However, this frequently leads to misalignment with local payment cultures.
Key factors for success in the Vietnamese market include:
- Understanding Vietnam's unique payment habits
- Localized UI/UX design
- Rapid response systems for technical issues
- Building trust in unmanned systems
It is essential to build a system that flexibly supports various payment methods, including coins and cash payments, QR payments, card payments, and E-Wallet payments.
Conclusion: Payment Systems Are the Competitive Edge
As seen in the development cases of the US and South Korea, payment systems in the self-service laundromat industry will become the core competitive advantage of businesses beyond being simple payment methods.
Especially in emerging markets like Vietnam, building payment systems optimized for local culture and consumer behavior is the key to success.
While "machine quality" and "location selection" are certainly important, I believe that convenient and intuitive payment experiences are ultimately the most important factors driving customer satisfaction and return visits.
Wash Friends will continue to innovate to turn these challenges into opportunities in the Vietnamese market.
We hope you'll join us in watching how Vietnam's self-service laundromat culture develops.
