Cannabis credit cards are beginning to grow across the U.S. with the explosion in THC and CBD marijuana dispensaries. One of the largest operators in the medical cannabis industry, with licenses in 15 jurisdictions in the US and the EU, just completed a pilot in New York State, now going nationwide by the end of this year.
The CNC Card is the first and only cannabis company in the U.S. capable of directly accepting a credit card for cannabis purchases. Columbia has processed one million successful sales transactions since its inception.
Columbia is it also looking into other cardholder benefits such as cash back affinity programs, discounts, educational seminars, first access to new products and other exclusive offers.
The cannabis industry has been predominantly cash-based due to federal banking restrictions on the use of credit cards for cannabis purchases.
Delivering a traditional and legitimate electronic payment solution to this explosive but highly regulated industry, the new Columbia card allows retailers and customers the convenience of a credit payment while mitigating risks and costs associated with cash transactions, likely opening more doors for the entire U.S. cannabis industry, notes Robert McKinley, Senior Analyst for CardTrak, CardFlash and CardData.
The CNC Card pilot initially launched one-year ago has experienced an 18% increase in average basket size for in-store purchases compared to other forms of payment, in addition to significant increases in repeat visits and an increased utilization rate for home delivery and automatic fulfillment.
Columbia says home delivery in New York currently represents over 10% of its revenue in the state, with an average basket size 40% greater than those in-store. Upon introducing the CNC Card in New York, home delivery users became the fastest growing segment of the CNC program, increasing 25% month-over-month in 2019.
In April NJ-based GD Entertainment And Technology (GDET) began marketing its hemp derived CBD products via “The Greenery” website. The Greenery product line will initially consist of mostly U.S. made products including Full Spectrum, Kosher, Halal, NON-GMO, ECO Friendly, and Organic. GDET’s also announced plans to offer a new cryptocurrency “cold storage card” offered by DreamCard, a company it acquired. Cold storage empowers cryptocurrency to cold storage in regard to the keys being out of client direct control.
The first legitimate debit payment solution for the weed biz was launched in 2017 to capture dispensary owners, customers, and patients in Oregon’s recreational and medical cannabis marketplaces. Colorado-based CanPay dispensaries in the state now offer a secure, legitimate, and transparent alternative via the CanPay app to the current cash-only system for both in-store and delivery purchases.