Coins vs. Cards: What Laundromats Reveal About Spending
A new survey shows coins still dominate laundromats—but digital payments are rising, and studies suggest they may lead consumers to spend more.
There have been many surveys trying to get a handle on just how much more the public prefers non-cash over physical cash transactions. Among the more unusual surveys is the recently published American Coin-Op Your Views survey studying spending habits at Laundromats.
This is of interest, particularly since those using the services of a Laundromat are more likely to be in a lower income bracket. According to the survey, 66.6 percent of Laundromats continue to accept coins while only 36.7 percent allow credit card use. Store operators indicated that 53.3 percent of their revenue has been coming from non-cash payments, which has increased over time. Only 23.3 percent of operators anticipate their stores will continue to be coin-dominant.
This survey likely follows those taken in other industries. More digital spending is good for merchants, but what about for consumers? A March 11, 2021, MIT Management, Sloan School study found “that credit cards serve to ‘step on the gas’ by putting costs out of mind regardless of the price of the product.” A May 16, 2024, Forbes magazine article headline screams, “People are twice as likely to spend more money when using a card than cash.” According to the Forbes article, “21 percent of people said they often overspend when using a card to pay as opposed to cash.
More than 55 percent of people in every state said that using a card is likely going to make them spend the most money.” About 71 percent of Baby Boomers, that same age group who are more likely to purchase rare coins, said card payments encourage them to spend more. Here’s the irony—we collect coins, but it appears we are more likely to pay for that purchase with credit cards!
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