Research Outline

Cashless Cannabis Payment Options


To understand the current landscape for cashless cannabis payment options.

Early Findings

  • While there is some progress for banking and the cannabis industry, cash is still seen as the dominant option.
  • While banks are more legally able to work with the industry, many still choose not to due to its higher level of perceived risk.
  • One newer solution currently being employed are cashless ATMs. These work by, "The transaction goes through the regular issuing bank authorization process via the payment system. Instead of cash, the system approves a withdrawal amount in increments of $5 or $10 plus a convenience fee that the customer absorbs. Any difference in purchase price at the dispensary is returned to the customer from the store’s POS. Funds are paid into the merchants’ bank account in 24/48 hours, and show up as cash withdrawals on the customer’s statement."
  • Paytender Merchant works by accepting contactless online payments for delivery or order-ahead via a pre-loaded account.
  • Another way to accept payments is through ACH transaction via a third-party vendor like Hypur Pay or CanPay. Customers use a mobile app to check out at the dispensary.
  • CannaTrac is similar but aims to be a more end-to-end solution for cashless cannabis payments. The system offers consumers loyalty programs, acceptance at multiple businesses, mobile ordering and more.