Since cannabis remains federally illegal in the United States, banking options are limited for dispensaries operating in legal state jurisdictions like New Jersey. Adding to this unique challenge for dispensaries is that Visa and Mastercard will not process cannabis credit card payments. These challenges mean that cannabis is one of the few primarily cash-based retail businesses in the country. But as the industry evolves and matures, cashless payments solutions have arisen as a new option for dispensaries. The path to cashless payments benefits both consumers (who like the convenience) and dispensary owners (who appreciate the added safety, security, and integration directly with their point of sale and ecommerce offerings).
Cashless transactions also offer impressive 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 also make payments and significantly improve their cash conversion cycle. This allows retailers to invest business capital more intelligently and generate greater profits in the long run.
Three reasons to implement cashless payments at your New Jersey dispensary right now
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.
- Decreased customer wait times. Cashless solutions decrease wait 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.
- Reduced opportunities for theft. 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.
- Increased revenue. One of the consequent results of this transition is an average increase in basket size per customer. Dispensaries that enable cashless transactions see an average increase of up to 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—as customers are far more likely to buy into upsells when they do not have to physically remove cash from their wallets. This drives ROI and ultimately increases the overall profitability of your dispensary.
Introducing Dutchie’s integrated payments solutions
As attitudes shift and the state of payments continues to evolve, Dutchie has been working to help prepare U.S. dispensaries to accept digital payments. Our digital payments solution, Dutchie Pay, leads to faster checkouts, bigger basket sizes, more productive staff, and improved customer retention. Shoppers can also choose how they pay—with curbside, delivery, and pay ahead options.
Many dispensaries prefer to offer consumers a variety of non-cash payment solutions, including in-store payment options. Retailers can implement a variety of cashless payments solutions via a third-party integration with Dutchie POS. Cashless payments create a sense of traditional shopping and can help build trust in the cannabis industry, and can utilize cards consumers may already have in their wallet. Empower your customers to start paying directly into your merchant account and reduce the complexity (and vulnerabilities) associated with running an all-cash business.