The result of this is more expensive cannabis for the consumer as the majority of people grab their cash from ATMs that come with an attached fee, all-while businesses suffer from not being able to offer a seamless purchasing process, which is becoming increasingly more important to consumers as technology continues to become a larger part of our everyday lives.
Beyond the monetary hurdles that a cash-only approach brings to the cannabis industry, there is also an inherent danger in running a business that is forced to process large quantities of cash on a daily basis. Banks usually handle this threat with Brinks trucks and advanced security systems. Your local dispensary is likely facing this challenge with a one-man security team – if that. Dutchie hopes that Dutchie Pay will put a sizable dent in this issue, but how does it work?
To bring Dutchie Pay to life, Dutchie teamed up with Hypur to develop an ACH-based payment system that integrates with online platforms and points of sale systems to replicate the standard digital payment experience that consumers are growing accustomed to. Because the technology integrates with e-commerce platforms and POS systems, customers only need to enter their payment information one-time to have the power to shop indefinitely, both online and in-store (coming soon). That means no more trips to the ATM, and no need to re-enter your payment information multiple times. You simply search, shop, and go!
Currently, Dutchie Pay is only available for online purchases, but the process of integrating the system for in-store transactions is already in motion. Keeping in mind that Dutchie Pay is only available for online purchases, the data concerning its impact on sales thus far is amazing, to say the least. Over the last few months dispensaries that have tested Dutchie Pay have seen a 30% increase in order value while simultaneously seeing a 32% decrease in cart abandonment rate. When asked about these statistics, Lipson has an optimistic outlook for the future.
“The convenience of that feature and the fact that they’re not limited and held back by cash is definitely a major contributing factor to this,” Lipson said. “If our dispensary partners can see customers coming back more frequently because of the payment methods that we are offering, that’s an amazing indicator as well.”
Dutchie Pay is another step in the direction of Dutchie’s mission to create a complete cannabis-payment-ecosystem that embraces technology, serves the customer, and empowers the business. While the aim is lofty, it is something that Dutchie heavily embraces, and they consider the launch of Dutchie Pay to be one of the staples of said ecosystem.
“We saw an opportunity here to basically lean into our mission, which is to provide safe and easy access to cannabis and provide a digital payment solution,” said Lipson. “So think of it as kind of that third piece of this ecosystem, and it really completes [that loop].”
As a cannabis web design agency, we view Dutchie Pay as a technology that has the potential to drastically improve the overall user experience (when ordering) while providing dispensaries that utilize it a sizable advantage over their competitors that do not.
Not only does the technology increase the flexibility of a website in terms of possibilities with UX/UI, but it also meets the expectations of common buyer psychology. If your dispensary is curious about how this technology can impact business, reach out to our team, and we are happy to answer any questions.