Cannabis retail is booming in the United States, and by 2024, it’s predicted that sales will reach an estimate $31.8 billion. This massive growth is partly driven by cannatech businesses that take the lead on technological advancements. One such company is Treez, which enables in-person and online sales while providing dispensaries with a variety of digital payment options that boost customer satisfaction and sales.
The Safe Banking Bill and federal legalization of cannabis are both making little progress in Congress, despite state-level legalization being on the rise. Since banks and most credit card companies are reluctant to be involved with cannabis businesses due to the uncertainty surrounding federal marijuana legalization, many of them are forced to work as cash-only operations.
Cannatech businesses have seemingly stepped up to fill the gap left by the lack of significant financial providers in the marijuana industry. However, many dispensaries are still unfamiliar with the numerous alternatives to cash payments because they are content with the status quo, lack information or are constrained by their own antiquated systems.
A business faces many difficulties when it is a cash-only operation in terms of security, effectiveness, convenience and flexible channels of sale. By integrating payment technologies into their operations, dispensaries can lower cash payments by up to 30%, reducing the financial risks of theft and creating more time for employee-customer interaction.
Payment technologies not only enable more effective and safer transactions but also ease of operation and convenience, both of which have the potential to boost sales and, in some instances, double the average sale value. Cashless transactions make online ordering easier, which results in higher sales.
The most popular types of cash substitute payments available today are debit cards, cashless ATM transactions and ACH direct deposits.
Recently, however, ATM transactions faced outages because of the operation on the gap that allowed dispensaries to process transactions by mistaking ATM withdrawals as originating from a nearby location.
The crackdown prompted retailers to look into alternatives such as those provided by TreezPay, the first marijuana payment-processing solution to provide several digital payment options. According to the company, TreezPay’s cashless transaction options enable retailers to increase their monthly sales by more than 25%.
Treez obtained Swifter in 2022, an API transaction platform designed to deliver the particular requirements of the marijuana industry, in a bid to continue providing payment solutions. Swifter improves digital transactions by offering integrated, partner-powered services that increase stability, transparency and processing rates.
The API platform concentrates on integrating with as many other cutting-edge solutions as possible, such as mobile QR and cryptocurrency, while also providing a wide range of cannabis-focused solutions. This gives each dispensary the freedom to explore its options and create the software environment best suited to its requirements.
Ultimately, the industry isn’t expecting any financial-related legislation to support it anytime soon, according to cannatech companies. Thus, tech companies are proactively supplying sophisticated payment solutions that aid dispensaries in acquiring more clients, boosting sales, delivering superior customer service and managing significantly less cash.
As these payment-processing alternatives become widespread within the cannabis industry, it could have a beneficial ripple effect that may see ancillary enterprises such as Advanced Container Technologies Inc. (OTC: ACTX) gain additional traction as demand for marijuana products increases and subsequently supply ramps up in different markets.
NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX
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