Since the inception of recreational cannabis, businesses have relied on cash. Most major financial institutions do not work with cannabis businesses. According to New Dawn Risk, it’s estimated that 70% of cannabis businesses today do not have a relationship with a financial institution. This has left many cannabis companies to rely on cash as the primary, or only form of payment.
With the news at the end of 2021, first by Visa condemning the use of Cashless ATMs and the industry waiting for The SAFE Banking Act to pass, cannabis businesses had to wonder if cash, with its operational and safety burdens, was here to stay.
When looking at the criteria of a compliant cannabis payment solution Ali Jubelirer, Outside General Counsel for AeroPay says, “the devil is in the details.” Jubelirer goes on to state that from a compliance standpoint, you want your payment provider to:
(Continue reading Jubelirer’s blog about compliance here to learn what to ask your prospective cannabis payments provider.)
AeroPay is a contactless, cashless payment solution tailored to the cannabis industry. AeroPay partners with the financial institution, Safe Harbor, a division of Partner Colorado Credit Union. Safe Harbor is the leading compliance-based banking program for cannabis businesses. AeroPay works with this reputable financial institution and state regulators to assure that its payments are secure and compliant.
AeroPay allows customers to create an account by scanning a QR code, link to their bank account and pay for their order, all from their mobile device. No downloads, no apps and no sensitive information is required to pay with AeroPay.
Contactless payments skyrocketed in 2019. The pandemic drove widespread adoption of hands-free payment options to avoid touching others’ hardware, screens or cash. According to a Mastercard poll, “More than half (51%) of Americans now use contactless payments”.
Cash-only businesses rely on the cash their customers have on hand. Recent studies show that only 16% of consumers carry cash and 58% plan to eliminate cash completely. Many customers are reluctant to wait in ATM lines or pay the fees associated with an in-store withdrawal.
Dispensaries offering AeroPay as a cashless payment option see an average 25% increase in transaction size and sales. By using bank-to-bank transfer payments, customers aren’t limited to the amount of cash they have in their wallet, but only by the funds in their bank account.
For online orders, including buy online and pick-up in store and delivery, AeroPay allows businesses to collect pre-payments for orders. This has shown to boost online orders by up to 30%. Customers no longer need to have cash ready to pay their delivery driver, nor does the driver have to carry cash.
Reduce the operation burden of managing cash.
Cash offers its own set of challenges. Not only is it expense to move and keep secure, but it adds additional challenges when attempting track and record.
By moving to AeroPay’s digital payment solution, businesses will be able to keep compliant, accurate records. With AeroPay’s merchant-facing portal, and integrated solution, tracking payments and reconciling accounts is seamless.
We’re happy to show you our full payments solution and put the best bank-to-bank transfers to work for your business.