Dutchie jumps into Fintech with Dutchie Pay
Cannabis platform technology company Dutchie is jumping into the fintech world with the launch of Dutchie Pay, a fully integrated digital payment solution. Cannabis companies have faced major challenges on the payment side of the business since the big banks and credit card companies refuse to work with cannabis. The product remains federally illegal, and that’s enough for these financial institutions to just say no.
While many see this as a major challenge, this problem has created an opportunity for innovation and payment creativity. Dutchie Pay is designed to reduce reliance on cash by providing dispensaries and consumers with a convenient and secure way to pay. It’s a closed circuit automatic clearing house (ACH) solution, there Dutchie Pay allows consumers to purchase cannabis products online while automating dispensary compliance.
“Cash creates too many security risks and is inefficient. Our industry cannot fulfill its full potential without modern payment solutions available at scale, says Dutchie Chief Product Officer and co-founder Zach Lipson. “Dutchie exists to create safe and easy access to cannabis. Dutchie Pay advances our mission by integrating a simple and secure product that makes cannabis purchases safer, easier and more accessible for both pharmacies and consumers.”
Dutchie said so launched the payment platform with alpha and beta testing in the first half of 2022. The company said that, on average, order values have already increased by 30%. It reduced abandoned cart rates by an average of 32%. It also reduced customers’ cash handling costs by at least 15%. Dutchie Pay also drives repeat purchases, with 82% of consumers making at least one new purchase after signing up.
Dispensaries have been scrambling to figure out how to accommodate customers who expect to have a normal e-commerce transaction experience while maintaining compliance with the companies that don’t want to be associated with cannabis. Currently, approximately 90% of all dispensation transactions are handled in cash, creating operational inefficiencies and increased security risks. Dutchie Pay is a one-click digital payment option for cannabis products online and for delivery via a direct ACH bank transfer. Dutchie Pay allows consumers to quickly connect to their bank account and pay directly at checkout.
Behind the counter, Dutchie Pay fully integrates with Dutchie’s e-commerce and point-of-sale (POS) solutions, giving businesses a single-vendor advantage to streamline operations. Dispensaries no longer need to rely on multiple software vendors, and with this level of integration, retailers can significantly reduce human error, maximize sales, serve more customers, and generate more revenue.
“Our customers increasingly want to buy cannabis products without using cash and without paying ATM or other fees. Dutchie Pay have improved their overall shopping experience while resulting in higher basket sizes and customer loyalty,” said Joshua Kahn, Owner at Takoma Wellness Center. “With Dutchie Pay, I have a one-click solution that is fully integrated with e-commerce and point of sale that provides a seamless shopping experience for my customers, a safer work environment for my team and accelerated growth for my business.”
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