Transact with cash, debit card, or direct bank transfers.
Marijuana retail is booming, but the industry remains largely cash-based. Federal law still classifies pot as an illegal drug, so some banks and payment services run the risk of being penalized if they participate in marijuana retail.
Many banks do not allow cannabis companies to have bank accounts, and for dispensaries, taking debit cards and mobile payments can be complicated or impossible. This is a huge hurdle even in states where cannabis is legal.
There are barriers to electronic payments
The cannabis space is a fast-growing retail industry rife with opportunities. In California, the industry is worth 3 .1 billion dollars.
But despite this potential, there are barriers to electronic payments. This is partly due to the lingering stigma surrounding the plant and cannabis payments.
Marijuana payments still carry the stigma of criminality and shady dealers
Despite the burgeoning acceptance, marijuana payments still carry the stigma of criminality and shady dealers.
An article by PYMNTS brings up the stereotypical images of “high school bathrooms, back alleys, and sketchy dudes at concerts.” But the article also points out that though the stigma is understandable, its prevalence will only lead to missed opportunities.
Legal cannabis stores can offer luxury experiences akin to fancy coffee shops
Today, legal cannabis stores can offer luxury experiences akin to fancy coffee shops. Many medical and recreational dispensaries have sophisticated décor and knowledgeable budtenders to assist customers.
If you are in Arizona be sure to stop by Downtown Dispensary & D2 Dispensaries. In Colorado stop by Igadi and Green Dragon Dispensaries. In Battle Creek Michigan AmsterdamBC dispensary and in Oregon Nectar dispensaries. These dispensaries offer a true luxury experience with a large array of cannabis products.
Additionally, entrepreneurs must complete thorough licensing procedures and background checks before opening a dispensary.
The cannabis industry is still highly regulated
The cannabis industry is still highly regulated. However, even though it is illegal at the federal level, recreational use is now legal in 11 states, while medical use is legal in 32 states. The number of states to legalize marijuana is only growing, and with time, federal regulations will likely slacken.
Yet some still cannot sense the change. Payment services that cannot look beyond the common misconceptions and outdated stereotypes remain blind to the potential opportunities within the industry.
Payment solution companies are finding creative ways before most others
That’s why payment solution services already operating skillfully and ensuring compliance in the cannabis space, like Hypur, Paybotic and Dama’s Paytender APP are forward-thinking companies and met with success. These payment solution companies are finding creative ways to tap into that potential before most others.
The PYMNTS article refers to the “federal payments knot” currently holding the cannabis industry back from electronic payments. However, as marijuana becomes legalized in more states and the stigma steadily decreases, that knot will gradually untie itself.
As it does, payment solution services already operating in the dispensary industry are going to be way ahead of the game.
The cannabis industry is still largely cash-based, (70%). Protecting your cash, the security of your people, and you should be at the forefront. This current epidemic makes handling many cash transactions a major concern. Some payment solution services as listed above are frontrunners in changing the stigma and tapping into the industry’s potential to provide cash protective measures.
Paywana provides self-ordering kiosks run by our proprietary to Cannabis and CBD dispensaries to reduce labor costs and increase profits, We offer everything needed to efficiently operate and manage your dispensary including interactive kiosk software, Cannabis, and CBD friendly payment processing solutions. SCHEDULE A DEMO Paywana.com.