The Problem of Cash for Dispensaries

Sales of state-legal cannabis firms are expected to reach around $30 billion by 2025. However, these firms mainly operate using cash. 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

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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.

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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 creates problems for reconciling payments, monitoring by cannabis regulators, and tax considerations.

Customer service is poor.

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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.

It's clear that cannabis businesses face significant challenges due to the nature of currency. 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 can use digital payments to reduce their dependence on cash, track all payments in an organized dashboard, and provide a better experience for customers at the point of sale.

Click here to learn about Sprout Processing's digital payment options for cannabis companies, including credit and debit card solutions.

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