In 2024, 85% of POS (point of sale) transactions were cashless, and that percentage is expected to grow to 90% by 2028.
Despite that, the cannabis industry is known for its cash transactions. In the past, this was largely due to the myriad of regulations surrounding the industry. However, cashless payment options are more readily available today and offer dispensaries several upsides.
With that said, let’s first take a look at some of the cashless payment options available to dispensaries.
● Debit Card—A convenient and popular cashless payment method that many consumers already have on hand.
● Digital Wallet—A versatile payment method that allows customers to pay using various digital payment options on their phone. This can include digital gift cards.
● ACH Payment—A direct transaction from the customer’s bank account.
● Cryptocurrency—Decentralized digital currency like Bitcoin.
● Credit Card—While credit cards are highly regulated in the industry, depending on what the dispensary sells, they may be allowed.
There are many benefits that come with cashless payments, including better tracking, increased cart sizes, and greater security.
The “cashless effect” is widely known in the business world and refers to the effect that cashless payment methods have on consumers. When using cashless payment options, consumers tend to spend more, not less.
This is due to a number of reasons, such as it being easier to pay with cashless payment options, it’s less “painful” (swiping versus counting out cash), and cash on hand is limited, which may in turn limit what the customer can buy.
That said, having cashless payment options for your customers can lead to greater cart sizes and, therefore, more sales.
With more cashless payments, dispensaries have less physical cash on the premises. This can help de-incentivize would-be thieves from robbing the store. This will also help increase overall staff and customer safety.
Additionally, if a thief did rob the store, there would be less cash to steal. When it comes to safely storing and transporting cash, dispensary owners will have an easier load to deal with if most transactions are cashless.
POS systems designed for cannabis dispensaries can process and accurately track all cashless payments, which saves owners significant time that would have been spent counting and tracking cash payments.
These systems can also help enforce purchase limits and ensure that all sales are compliant with local and federal regulations.
Lastly, cashless payments are easier and more convenient for both customers and owners. Customers experience shorter wait times and quicker checkouts along with the added convince of not having to carry cash on hand.
On the other side, owners and budtenders don’t have to deal with the hassle of checking payment amounts, counting change, and repaying customers if they don’t pay the exact amount.
Cashless payment options offer dispensaries a way to cut down on manual tracking, increase customer satisfaction, safeguard against potential theft, and increase order sizes. There are many POS systems specifically designed for cannabis dispensaries that provide even more benefits from enforcing order limits to ensuring regulatory compliance.
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