This is the third blog of our new series discussing the effects of COVID-19 on the cannabis industry. Recently, we discussed the new ways that cannabis dispensaries must operate to deliver products to customers while keeping them and their customers safe. In this blog, we will share insights on the importance of cannabis dispensaries moving to non-cash payments.
In an effort to slow the spread of COVID-19, essential businesses are increasingly trying to find new ways to accept payment methods outside of cash transactions. Traditionally, dispensaries have operated as cash-only businesses since banking restrictions inhibit traditional cashless payment methods. Cashless payments in the cannabis industry require specialized technology in order to reduce person-to-person interaction and allow for a fully executable online ordering experience.
During the COVID-19 pandemic, dispensaries are attempting to adjust how they currently operate by implementing online ordering and delivery. With that shift, business owners must also change how they accept payments – an adjustment not limited to cannabis dispensaries. For instance, the Publix Super Markets chain introduced contactless payment methods in all of its 1,200 grocery stores, Chick-fil-A restaurants in Florida, Indiana, Georgia and Virginia are moving to cashless payments, and even toll takers in several states no longer accept cash.
Technology Enables Non-Cash Payments to Maintain Social Distancing
Being a cash-only business is a challenge many cannabis dispensaries have faced for years. Social distancing guidelines mandated to maintain the health and wellbeing of employees, customers, and the community have only added to the complexities of operating a primarily cash-based business.
COVID-19 is transforming how consumers interact with businesses, as individuals increasingly move to online purchases, on-demand deliveries, and curbside pickups, and as a natural progression, touchless payments. Businesses that have adopted these new, innovative technologies now are the ones who will survive beyond COVID-19.
One such innovative technology, MJ Platform’s partner Hypur, provides secure, electronic payments through its mobile app. In fact, Hypur was created to fill the special needs of cannabis business owners, enabling them to provide customers with a safe, reliable electronic payment option and a shopping experience that would be expected from any other type of business. Built on the Automated Clearing House (ACH) network, Hypur seamlessly transfers payments from the customer’s bank account to the cannabis business’ bank account for a touchless interaction that keeps cannabis employees and customers safe and in compliance with CDC guidelines for social distancing.
According to Tyler Beuerlein, Chief Revenue Officer of Hypur and Chairman of NCIA Banking and Financial Services Committee, “COVID-19 has only sped up the inevitable for the industry. Today’s consumer prefers a convenient, reliable experience when purchasing goods. Hypur Pay’s best-in-class options provide that experience for the consumer.” Case in point, Hypur has seen a significant uptick in order amounts and consumer adoption during the pandemic. Furthermore, the launch of the company’s “Safe Checkout” feature for delivery and pre-order enables commerce without the need for the consumer and the delivery driver or budtender to interact physically.
Technology is Crucial to Allowing Essential Businesses to Operate
As governments continue to take measures to protect their citizens from the spread of COVID-19, human and economic costs are becoming increasingly evident. However, technology is the common enabler for essential businesses to operate and serve their communities and for individuals to continue with their daily lives while complying with social distancing.
COVID-19 and the restrictions that have accompanied it has changed the way we do business and interact with one another in ways we could not have predicted. While cashless payment options have been available for some time, the technology has become a crucial need stake for short-term and long-term viability and success. As the country emerges from the immediate crisis, it is clear that the solutions that have been put in place now will continue to shape and define the industry moving forward. For cannabis business owners, now is the time to embrace the technologies that will enable them to operate efficiently and ultimately allow them to thrive in the future.
