By clicking Accept, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Pprivacy poprivacy policy for more information.

How ACH Pre-Payments Increase Dispensary Efficiency and Boost Revenue

Cannabis
October 25, 2023
Rachel Ludwig

Modern retail experiences include a variety of ordering options, such as delivery and curbside pickup.

For dispensaries, the problem with these options are their heavy restrictions and high upfront costs.

Cannabis retailers that want to avoid in-store transactions and minimize cash are turning to something called “pre-payment” where customers pay online for orders, then pick them up in-store. This simple adjustment is yielding impressive results, like more efficient workflows and increased revenue. 

Some legal cannabis markets, like New York, even require pre-payment for cannabis delivery orders. It’s something we’re going to see much more of going forward. 

This post discusses the concept of pre-payment, why it’s a growing trend in cannabis, and the impact of adding pre-pay orders at your cannabis shop. 

What is a pre-payment? 

A pre-payment, or buy online pickup in store (BOPIS), means a dispensary customer pays for their order online, then visits the store to pick it up. When they arrive to grab their items in-store, they can skip the line, pick up their order, and leave. 

In cannabis, pre-payments must be processed using an ACH solution (instead of PIN debit or cashless ATM). This is because card payments at dispensaries require a customer to be inside of the store to physically enter their PIN. With ACH, funds can be authorized online, allowing customers to place an order and pay for items without going into a store. 

The growing pre-payment trend

It’s already standard practice for traditional retail powerhouses like Target, BestBuy, Footlocker, and many others to allow customers to pay online and pick up in-store. This process offers a fast, convenient method of ordering and has shown clear signs of efficacy. 

Now, leading MSOs in cannabis are adding ACH pre-payment options to capitalize on a growing number of online buyers and simplify cannabis payments – a historically cumbersome process. 

The impact of pre-pay orders

Offering pre-payment in a dispensary setting comes with a long list of benefits, including increased revenue and greater store efficiency. Let’s dive into each benefit more closely: 

More online orders

Because pre-payments happen online, they’re encouraging customers to order at home. Online orders that are picked up in-store provide a unique customer shopping experience. Shoppers get to browse and compare products from home, but avoid high delivery costs or long waits for curbside pickup. 

Put simply, pre-payment offers the convenience of online shopping with the reliability of making a purchase in-store. This is a unique, enjoyable offering to set your dispensary apart and delight customers. 

Increased Average Order Amount

When your customers are pre-paying, it means they’re paying digitally, which means they’re spending more than they would with cash. 

Aeropay digital payment users spend an average of 25% more. This means encouraging shoppers to pay online offers a nice boost to your revenue. 

Less unclaimed orders 

Customers who pre-pay for their order are far more likely to actually pick that order up. 

In fact, the amount of online orders that never get picked up goes down significantly with pre-payment. That means your staff won’t be putting away unclaimed orders at the end of the day.

Take customers from competitors

On top of all the other benefits of pre-payment orders, perhaps most interesting is the impact the workflow has on a retailer’s competition. 

Harvard Business Review conducted a study on a major retailer’s sales after their biggest competitor launched “buy online, pick up in-store”. The results offer solid proof that consumers not only flock to this concept, but even purchase more expensive items. 

Results of the study include:

  • • The company without pre-payment options saw sales drop by 4.7% online and 1.8% in-store – meaning the competitor was not only stealing online sales, but also their in-store traffic.
  • • Pre-payment customers purchased an increase in higher priced items, suggesting customers who are more uncertain about buying expensive items online are reassured by picking them up in-store, enabling free and effortless returns if they aren’t satisfied with the product.  

Takeaways for dispensaries

  1. 1. Pre-payments are an easy way for dispensary customers to skip the lines, avoid using cash, and still grab their products when they want. 
  2. 2. Cannabis retailers using pre-payments see an increase in customers who shop there, as well as the amount those customers spend. 
  3. 3. Pre-payments enable more efficient dispensary operations by limiting cash transactions and decreasing unclaimed pick up orders. 

Add pre-payments at your dispensary with Aeropay

Not only is ACH the most stable and affordable payment solution for dispensaries, it’s also the only compliant pre-payment option in cannabis. 

Customers and businesses love using Aeropay for ACH cannabis payments because they’re fast, secure, and don’t require any sensitive information. Once a shopper pre-pays with Aeropay once, they’re able to pay in seconds forever. 

Book a demo to learn more about adding pre-payments at your dispensary. 

Author

Rachel Ludwig

Marketing & PR Lead
Back to the blog
Back to product updates
Schedule a demo

Seeing is believing.

We’re happy to show you our full payments solution and put the best bank-to-bank transfers to work for your business.

Book a demo with Aeropay
Just 15 minutes
Specific to Your Business
No tech experience needed
Schedule a demo

Seeing is believing.

We’re happy to show you our full payments solution and put the best bank-to-bank transfers to work for your business.

Book a demo with Aeropay
Just 15 minutes
Specific to Your Business
No tech experience needed
Schedule a demo

Seeing is believing.

We'll talk about your big ideas and how payments can support your vision.

SDK & API optionality
Plugin information
Dedicated integration specialist
Onboarding and implementation
Schedule a demo

Ready to put integrated payments to work?

We’re happy to show you our full payments solution and put the best bank-to-bank transfers to work for your business.

Partner with Aeropay
Just 15 minutes
Specific to Your Business
No tech experience needed