Sales of $12.5 billion as of 2019 & banks are unable to accept the money?
With the recent legalization of cannabis in many states, the cannabis industry has rapidly grown: many dispensaries are popping up, reaching an all-time high of 3,671 in the United States.
Even though the cannabis industry had sales of $12.5 billion as of 2019, banks are unable to accept money from these businesses due to cannabis’ illegal status at the federal level.
Consumers, therefore, have to pay for cannabis with cash, posing liability, security, and revenue problems for businesses.
Cashless Solutions That Can Alleviate These Issues
However, there are cashless solutions that can alleviate these issues.
Typically set up by a third-party provider, cashless ATMs are a popular (though risky) solution to the problems associated with cash. Customers use their debit card to withdraw a certain amount of cash in increments of 5 or 10 dollars from their bank account. A service fee is then tacked on. The consumer receives a voucher that can be used to purchase items at the store. They receive change if necessary, and the withdrawn funds are deposited into the merchant’s bank account.
These ATMs seem safe enough, but there are multiple issues associated with them that make them a risky option for both dispensaries and consumers. For one, these workarounds can lead to bank fraud, as some ATMs can be fraudulent. There is also a risk of the merchant’s accounts shutting down if the bank and processor find out that they purposely hid the cannabis account’s identity.
Cashless ATMs & Mobile Payments
Even though there are drawbacks, cashless ATMs can be useful. Still, cashless mobile payments are an even safer solution to process cannabis payments.
Mobile payments are a safe, legal option to process payments. They keep payments private through encrypted technology. Mobile payment apps allow consumers to directly use funds from their bank account to make purchases.
Hyper has a mobile payment option that offers multiple benefits for cannabis dispensaries and consumers.
For one, they have processed over 100,000 payments without shutdowns and outages. They work with many United States financial institutions and do not have expensive transaction fees for merchants and consumers. Their solution comes with high data security and they’re transparent about processing payments for the cannabis industry.
The first and only fully integrated cannabis payments software is here. Taking debit & online payments through Treez has proven to skyrocket Average Ticket Values, eliminate dual entry errors, and create a seamless customer experience.
Even though cannabis is not legalized on the federal level, merchants don’t need to resort to shady practices to keep their businesses successful. Mobile payment options like Hyper provide an optimal solution for cannabis payments, eliminating the need for risky cash and ATM machines.
Cashless ATMs and Mobile payments allow for efficient payments, even if cannabis is still federally illegal.