The cannabis industry has always had a cash problem. The good news? Now there are integrated, cash-free solutions that can help both retailers and consumers.
For dispensaries in the U.S., cannabis remaining a federally scheduled substance was a significant obstacle. And even though cannabis is legally regulated in the vast majority of states and Washington, DC, the major credit card networks prohibit the processing of cannabis payments.
Until recently, these restrictions forced cannabis dispensaries into adopting an all-cash policy. The result? Inconvenienced customers and challenging tax collection practices—with dispensary owners literally delivering sacks of cash to City Hall.
Cannabis payment processing solutions use electronic processors to receive and distribute payments from customers’ banks. These solutions allow cannabis dispensaries to sidestep all of the difficulties associated with running an all-cash business, such as:
Integrated cashless payments also offer remarkable benefits to business visibility over cash-based systems. By enabling instant reporting, cannabis dispensaries can enjoy a more in-depth view of the state of their business at any moment in time. They can make payments instantly and significantly improve their cash conversion cycle. This will allow retailers to invest business capital more intelligently and generate greater profits in the long run.
Rewards programs are already a common feature in many retail industries. In the world of cannabis, they offer a powerful option for enabling cashless payment while gathering mission-critical customer data for marketing purposes. Cannabis dispensaries have fewer marketing options than other retailers, so maximizing the effectiveness of direct communication with customers while enabling cashless transactions is a must for any dispensary.
Providing your customers with a modern retail experience is a crucial competitive advantage in the cannabis industry. Leveraging payment solutions that allow customers and dispensaries to escape the cash trap helps improve sales volume while reducing the risks associated with operating an all-cash business.
Cashless solutions also decrease waiting times for customers. In the broader retail industry, the transition to cashless payment alternatives correlates with up to a 15% increase in the number of transactions processed per hour.
Some cannabis dispensaries have been the targets of a wave of robberies in recent months, inspiring a national call to reform the federal banking rules that make it difficult for dispensaries to accept virtual payments. Implementing a cashless payment solution will help ensure your state-legal, legitimate business operates like any other type of business.
One of the consequent results of this transition is an average increase in basket size per customer. Dispensaries that enable cashless transactions with Dutchie see an average increase of 25% in order value, leading to increased sales volume and revenue. Upselling and cross-selling techniques are much easier to implement in a cashless environment—customers are far more likely to buy into upsells when they don’t have to physically remove cash from their wallets to do so! This drives ROI (Return on Investment) and ultimately increases the overall profitability of your dispensary.
Dutchie is here to support you with our best-in-class integrated cashless Payments solutions. Our integrated PIN debit solution, in conjunction with Dutchie Pay's successful launch of in-store payments, allows us to streamline your business operations with payment solutions you need—and your customers love.
Oh, and did we mention that over 70% of shoppers who use Dutchie Pay at a dispensary return to that dispensary within 90 days?
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