One major point of tension for cannabis retailers is the point-of-sale transaction. Because of the federally illegal status of many of the products being sold in-store, cash has ruled.
But cash isn’t the most convenient thing in the 21st-century digital-forward commercial landscape. Dispensaries have utilized a wide array of workarounds and legitimate solutions to this problem over the years, but banking nonetheless remains murky territory for retailers interested in streamlining the consumer experience.
Paybotic was founded in 2012 when Max Miller, President, was a student at Boston College. In November of that year, Colorado and Washington voters passed adult-use legalization measures—the first in the country—and sales would begin in early 2014. Since then, another 16 states have passed some form of taxed-and-regulated adult-use cannabis legislation (though not all are implemented as of now), and the pool of enterprising business owners in need of financial services has exploded.
In those past nine years, Paybotic has taken on more than 900 retailers nationwide, from small, one-location dispensaries to multi-location cannabis retail chains. The company provides a suite of services, including card processing, ACH processing, banking and cash advances specialized for Cannabis businesses. And as far as that critical point-of-sale transaction, the company’s card processing allows business owners to offer their consumers a way to pay for their purchases without digging around in their wallets for cash.
“We help to enable these businesses—cannabis dispensaries—to accept cards, like any other business, in a compliant, efficient and cost-effective manner,” Miller said. “There is a lot of financial institutions that refuse to work with the cannabis businesses because of its federal status, being illegal under federal law. Whether you purchase with cash, credit, sticks or stones, the purchase of cannabis is illegal—regardless that it’s been happening legally in many states for several years. That is the big