Although sales are estimated to reach almost $30 billion by 2025, most state-legal cannabis firms still operate on a cash basis. In the cannabis sector, reliance on cash has become an unfortunate reality due to a lack of viable options. And this creates a slew of issues for cannabis firms.
The expense of managing cash
Accepting cash nearly solely forces cannabis firms to do extensive cash management, including cash collection, handling, and general use. These firms pay a tremendous price for this procedure, both financially and in terms of time. It also carries the possibility of the customer and employee theft. This is a significant burden for industry owners and operators.
Tracking and reporting are difficult
Due to their reliance on cash, cannabis firms also face the challenge of tracking and correctly reporting their payments. It might be a nightmare if you don't keep track of your payments. This causes issues with payment reconciliation and monitoring by marijuana regulators and tax concerns.
Customer service is poor
Finally, with cannabis companies, accepting cash as a form of payment is a hassle for clients. It requires them to carry cash or, even worse, pay excessive ATM fees. A negative customer experience reflects poorly on a company's image.
The difficulties that currency brings for cannabis businesses are apparent. The cannabis industry has long been mistreated by the present payment environment and has been anxiously anticipating improvements. Digital payments are on their way.
Digital payments offer a solution to the problems that cannabis businesses face. They fill a need for cannabis firms that traditional payment processors have mostly ignored.
Cannabis companies may utilize digital payments to lessen their reliance on cash, keep track of every payment received on an organized dashboard, and create a better experience for clients at the point of sale.
Click here to learn about Sprout Processing digital payment options for cannabis companies, including credit and debit card solutions.