As society becomes increasingly digitized, it's no surprise that cash is being phased out as a method of payment. More and more consumers are turning to cashless methods of payment, such as credit and debit cards, mobile apps, and even cryptocurrency.
For businesses, this means that they need to be able to accept these forms of payment in order to stay competitive. This is especially true for Canadian cannabis businesses, already operating in a highly regulated industry. Moving to cashless payment methods can help cannabis businesses streamline their operations and remain competitive.
So, whether you're ready to go into a cashless future or are still on the fence, read on for insights that will help you make the best decision for your business.
Types of Cashless Payments
Here are the types of cashless payments:
Debit or credit cards: This is the most frequently used and widely accepted cashless payment option.
Electronic transfers: These transfers can be done via a bank account or directly from one person's account to another.
Mobile wallets such as Apple Pay and Google Pay: Mobile wallets act as digital versions of your physical wallet, offering convenience while providing increased security against theft and fraud.
Cryptocurrency such as Bitcoin or Ethereum: Digital currencies use advanced encryption technology to ensure safe transactions between users without requiring a central authority like a bank or government entity acting as an intermediary.
Buy now, pay later: Buy now, pay later (BNPL) is a cashless payment option that allows customers to spread out their payments into installments without a credit check.
How To Prepare Your Business for Cashless Payments
Here are four ways to prepare your business to go cashless.
1. Know Your Customers' Preferred Payment Method
When it comes to making purchases, people generally have a preferred method of payment. Some may prefer to use cash or cheque, while others prefer more modern options like credit cards or online payment services. As a business owner, you must understand your customers' preferred payment methods and offer various options that meet their needs. For example, if you run a brick-and-mortar store, you'll want to accept cash, debit and credit cards.
2. Improve Your Security
As more and more businesses move towards a cashless model, it is important to be aware of the associated risks. One of the most significant risks is the increased likelihood of cyberattacks. With customer and account information being transferred alongside payment data, securing your systems from hackers becomes imperative.
To minimize this risk, you must carefully vet any payment options you are considering for your business. Only choose methods that adhere to rigorous security standards like encryption and card tokenization to make it more difficult for hackers to steal critical information.
Establishing clear policies around how employees handle sensitive data is critical to ensure that employee error does not leave your business vulnerable to exploitation by fraudsters.
3. Offer Multiple Payment Methods
Any business owner knows that offering customers a variety of payment options is key to driving sales. The preferred payment method for one customer may not work for another. That's why it's essential to provide multiple payment options. By doing so, businesses can better accommodate different types of buyers and help ensure that sales are open to customers who cannot use the preferred payment method.
Additionally, offering multiple payment options can also help businesses attract new customers. Those who might not have considered doing business with a company that only offers one type of payment may be more likely to make a purchase if they have the option to pay in a way that is convenient for them.
4. Offer Prepaid (Gift) Cards and Loyalty Cards
Prepaid cards and loyalty cards are two critical tools for promoting customer engagement and increasing the long-term value of a business. Prepaid cards make it easier for customers to make purchases since they do not need to worry about carrying cash or swiping their credit cards whenever they want to buy something.
On the other hand, loyalty cards help businesses develop long-term customer relationships by incentivizing repeat visits or purchases. Offering a rewards program for cashless purchases is one way to provide that great experience and nurture customer loyalty.
Final Thoughts
As the cannabis industry grows, more businesses are starting to go cashless. There are a number of reasons for this, but the most important one is security. Cash is much more difficult to track and account for than electronic payments, which makes it a prime target for theft.
In addition, cashless payments are often faster and more efficient, which can help to improve the customer experience. For all these reasons, it’s clear that going cashless is a smart move for any cannabis business.
How Can Merrco Help?
Merrco offers payment processing to cannabis, CBD and regulated businesses in the US and Canada. Our goal is to provide our clients with fast, easy and secure payment processing so they can focus on what they do best – running their businesses. If you would like to partner with us or have any questions, please contact us at info@merrco.com or call our toll-free number at 1-800-957-0534.