USA Technologies, Inc. (NASDAQ: USAT) (“USAT”), a provider of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries and Setomatic Systems (“Setomatic”), a designer and manufacturer of cashless payment hardware and data services primarily for the laundry industry, today announced a new, mutually exclusive agreement that targets the move toward cashless payment adoption in the nearly $5 billion self-service laundry market. The agreement joins two leading solutions—Setomatic’s SpyderWash® technology and USAT’s comprehensive ePort Connect® service platform—to bring the best in cashless payment value to laundry operators as consumers increasingly opt to use their credit/debit card or mobile phone 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/debit card processing for Setomatic’s SpyderWash system. Conversely, USAT will market its ePort Connect service in the United States laundry market exclusively through Setomatic. In addition, over the next few weeks, the two companies will begin the transition of several thousand of Setomatic’s existing cashless connections to USAT.
Beyond the initial transition of Setomatic’s existing cashless connections, both companies will be 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 is comprised of 30,000-35,000 laundromats that Setomatic estimates translates to roughly 2.5 million commercial washers and dryers. Additionally, an industry participant indicates there are approximately 3.4 million machines in the multi-housing market. While no revenue figures are available for the multi-housing market, the Coin Laundry Association estimates gross revenue in the laundromat market at nearly $5 billion annually.
“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’s President, Michael Schantz. “Our historical information already shows us that cashless helps build incremental revenue for laundry operators. By aligning with USAT, we are taking this even further.