Driving Efficiency in Carwashes with Unattended Payment Solutions: A Guide for ISVs

Driving Efficiency in Carwashes with Unattended Payment Solutions: A Guide for ISVs

As the number of motor vehicles registered in the United States continues to climb, the carwash-services industry ascends in tandem. This nearly $15 billion market is expected to grow at a compound annual growth rate of 2.1% over the next five years.

Among the current 60,000 carwash facilities sprinkled across the country, automation of all types has become increasingly common. While self-service washes have long been an industry mainstay, today in-bay automatic washes comprise the majority of the market, and most of these businesses operate with minimal (and sometimes no) staffing. It’s a fast-paced, high-volume environment where speed, convenience, and efficiency are critical to profitability.

Unattended payments, of course, are part of the automation trend. They are essential to the modern carwash industry because done right, they reduce wait times, increase throughput, lower staffing costs, and streamline revenue collection—all while improving the customer experience.

ISVs developing software for carwash management, carwash kiosks, carwash mobile apps, and more are wise to futureproof their offerings not only by incorporating unattended payments but also by ensuring that their payment integration is fully loaded, with all the features needed to meet today’s business demands as well as tomorrow’s.

Payroc is a leading strategic payments partner helping carwash-industry ISVs capitalize on innovations and build secure, reliable, and scalable payment solutions that drive business success. We’re particularly known for the depth and breadth of our unattended payments expertise, making us an ideal fit for ISVs with portfolios that include projects in the carwash sector. We are proud to count AMP and Dencar Technology among our ISV partners, and we are glad to present the following insights gained throughout our years of service to the carwash industry.

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The Challenges of Manual and Attended Payment Systems in Carwashes

Manual and attended payments in carwashes remain somewhat common. About 60% of the market is comprised of smaller, independent operators, and many of these retain legacy payment systems that are prone to causing or contributing to a number of problems.

  • Long wait times and customer friction
    Traditional carwash payment kiosks are bottlenecks. Cash-based transactions and manual card entry slow down service and reduce throughput. This creates congestion, causing delays and frustrating customers.
  • Labor shortages and rising operational costs
    Nationwide, industries of all types have been constrained by labor shortages in recent years. Staffing carwash payment stations is costly and difficult, especially during peak hours. It’s no wonder that the push for automation in carwashes is accelerating due to these labor constraints.
  • Cash security risks
    Cash businesses suffer from exposure to theft, fraud, and mismanagement. Unattended systems that rely on digital payments, on the other hand, reduce or eliminate cash handling while providing safer, trackable transactions.
  • Revenue loss due to payment inflexibility
    Today’s consumers have ever-higher payment expectations. In every instance, they want to be able to pay with the method of their choice, including tap-to-pay, digital wallets, mobile apps, and subscription plans. Carwashes that only accept cash or traditional card payments risk losing customers to more modern, frictionless competitors.

  • Problems with memberships and recurring payments
    Manual membership renewals and account updates create extra work for staff and a poor experience for customers. Without payment automation, carwashes struggle to track and manage subscriptions, leading to payment failures and customer churn.

These and other pitfalls make manual and attended payments at carwashes a nonstarter for ISVs developing effective software capable of carrying their clients forward.

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How Unattended Payment Solutions Solve These Challenges

Robust, well-integrated unattended payment technology may not be as showy as the technicolor, robotic systems that suds, spray, rinse, and dry our vehicles at automated carwashes, but behind the scenes, it’s quietly and efficiently providing just as much value.

Courtesy of unattended payments, your carwash clients can expect:

  • Faster transactions and higher throughput
    Tap-to-pay, mobile payments (including in-car and voice-activated), app transactions, and QR code-based checkouts reduce the time it takes for each customer to initiate a wash. In addition, automated kiosks with license plate recognition (LPR) enable returning customers to pay instantly, without interacting with attendants, handling cash, or even stepping through screens on an automatic kiosk. These high-throughput, unattended solutions ensure car washes can handle more customers per hour, even when demand spikes.
  • Better customer satisfaction and loyalty
    At a carwash, anything that speeds up the process without sacrificing a quality clean will enhance the customer experience. Faster payment transactions fall into this category. A QR code displayed in line or at the entry kiosk lets customers scan, select services, pay, and go without having to download an app. Payments happen through the digital gateway, eliminating the need for multiple payment screens at a payment terminal, and payments via QR code are typically processed immediately, allowing for faster transaction times—all of which keeps the line moving. QR codes can also invite customers to quickly sign up for a subscription or loyalty plan or refer friends in exchange for rewards for both the customer and the friend.
  • Maximized revenue during peak hours
    Speaking of demand spikes, dynamic pricing models allow for real-time adjustments based on demand (e.g., peak-hour pricing). Unattended payments adjust nimbly with your dynamic pricing algorithm, whereas attended payments can force staff into difficult conversations about peak-hour pricing.
  • Less labor dependency and increased operational efficiency
    Self-service payment kiosks allow customers to pay independently, reducing reliance on attendants. And integrating unattended solutions with a loyalty or membership program automate customer authentication and billing.
  • Increased ticket sizes and automated upselling
    Self-service kiosks can promote premium wash packages and add-ons, increasing revenue per transaction. Even better, AI-powered kiosks can use purchase history to offer personalized upsell recommendations. A recent McKinsey study found that broadly speaking, AI personalization can drive a 10-30% revenue increase when implemented effectively.
  • Enhanced security and reduced fraud
    Eliminating cash transactions minimizes theft and administrative errors. And with secure EMV-compliant and PCI-certified payment processing, sensitive customer data is protected.
  • Optimized subscription billing
    As you know, monthly memberships and subscriptions are becoming a mainstay of the carwash industry. Automated recurring payments ensure that these wash plans renew seamlessly without manual intervention. Behind the scenes, automated card account updater services ensure stored payment methods stay current, preventing declines, membership cancellations due to failed payments, and customer attrition.
  • Delayed obsolescence through strategic retrofitting
    If you are working with a carwash customer with analog payment terminal hardware—in self-service bays, for example, or on carwash vacuums—one good option to move from dated unattended payments to modern unattended payments can be leveraging MDB protocol to bridge the gap. Payroc has experience developing digital cards that extend the life of legacy hardware.

Another good option for affordable, low-friction modernization at older carwashes is adding QR codes to the current payment system’s display or attaching a separate QR code display for customers to scan and pay. In fact, there are several easy ways to integrate QR codes into legacy systems to update the customer experience and speed up the process of service selection and payment. We invite you to review them with Payroc.

The bottom line is that for carwash businesses, dialed-in unattended payments can do a lot of the heavy lifting. They’re no longer just a convenience—they’re a core strategic pillar.

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Choosing the Right Unattended Payments Solution for Your Carwash Software

Here at Payroc, we realize that you have myriad choices when it comes to payment solutions. On the surface it can be hard to discern which payments partner is right for you. Whether you’re about to work on your first carwash payments integration or are considering moving to a different payments provider for ongoing development, we encourage you to consider the following additional criteria before you make a selection.

  • Reliability and uptime
    Whether physical or in the cloud, payment terminals must function flawlessly 24/7, ensuring transactions never fail. In addition, hardware and software must support fast, uninterrupted transactions, even in high-traffic environments.
  • Omnichannel payment acceptance
    Customers prefer being offered the full range of payment options. At a minimum, your payment integration must support contactless, EMV chip, QR codes, mobile apps, and mobile wallets (Apple Pay, Google Pay) to be considered satisfactory.
  • Attended payments add-ons
    Some carwashes are integrating handheld terminals into their revenue strategies. These devices allow staff to supplement unattended kiosks during peak hours and/or slow periods. Staff members can approach drivers waiting in the order line to help them make their wash selection and pay. Done well, this add-on can be perceived as white-glove service. It also allows for friendly upselling and subscription conversions.
  • Seamless integration with carwash management software
    Payments should sync automatically with CRM, reporting, and loyalty programs. Cloud-based APIs enable remote monitoring and real-time updates. Also expect customized, granular reporting (white-labeled, if that is your preference) that can readily dashboard sales SKUs, such as carwash types and food and beverage sales.
  • Token-sharing and migration
    Does your payments provider work with competitor payments companies to share and migrate tokens when that is what best serves the customer? Payroc regularly coordinates with other platforms to migrate over large token vaults, both inbound and outbound. We also support referral, ISO, and managed Payfac models to align with different ISV needs. With Payroc Path, you have the best of both worlds. You can bring your current payment processor to the payments integration, leveraging Payroc’s gateway while maintaining your existing provider relationships.
  • Security and compliance
    EMV certification, PCI compliance, and tokenization protect customer data, while fraud prevention features, such as point-to-point encryption, ensure chargeback and dispute reduction. Ask to see certifications and look for third-party audits.

Future-Proofing Carwashes with Unattended Payment Solutions

Unattended payments are redefining carwash efficiency—reducing wait times, increasing revenue, and cutting labor costs. Likewise, the enhanced customer experience, faster transactions, and improved security provided by unattended payments make automation an essential investment.

Payroc is helping carwash ISVs implement secure, high-performance unattended payment solutions that drive profitability.

If you’re ready to optimize efficiency and revenues for your carwash clients, schedule a consultation today to explore unattended payment solutions that will make your software shine.

For carwash businesses, the shift toward unattended payments is not a passing trend—it’s an industry-wide transformation. 

 

ISVs that invest in truly seamless payment integrations today will dominate the market tomorrow. The future belongs to ISVs that select the right payments partner—one that helps them optimize revenue, enhance operational efficiency, and deliver superior guest experiences. By embracing seamless, unattended, and omni-channel payments, ISVs can differentiate their platforms, drive adoption, and position themselves for long-term success in an evolving industry. 

 

Payroc is the partner that makes it happen. We invite you to schedule a demo today.

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