Businesses have had to rely on cash since recreational cannabis began. Financial institutions and payment systems have had to navigate a complex regulatory landscape to deliver a cannabis-friendly service. According to New Dawn Risk, 70% of current cannabis businesses do not have a bank account. As a result, many cannabis companies only accept cash as payment.
The sector had to wait until late 2021 to find out if cash,with its operational and security responsibilities, was going away.
Customers and companies alike now expect contactless payments.
Contactless payments exploded in 2019. As a result of the pandemic, many people now use hands-free and contact. The most hygienic solution is not to touch other people's gear, screens, or money. A Mastercard survey found that "almost half (51%) of Americans now utilize contactless payments."
Offering bank-to-bank payments boosts revenue.
Cash-only merchants rely on customers' cash. Many customers dislike waiting in ATM queues or paying fees for in-store cash withdrawals.
Dispensaries who use Sprout Processing notice a 25% boost in transaction size and sales. With a bank-to-bank transfer, users are restrictedto their bank account's finances, not their wallet's cash.
Sprout Processing allows companies to collect pre payments for online orders that include in-store pickup and delivery. This can increase online orders by up to 30%. Customers no longer need cash to pay drivers, and drivers no longer need cash.
Reduce cash management operating costs.
They suffer hefty cash management fees and security risks. Moving vast sums of cash securely is costly and risky.
Businesses must not only move cash but also report it accurately. Accounts must be accurately reconciled to remain compliant. The Sprout Processing merchant portal allows companies to track every payment and account.
Read up on contactless and cashless payment methods for cannabis dispensaries and delivery services. Book a demo today.