Hawaii has just announced a revolutionary way for its citizens to pay for medical marijuana.
The state is planning to go cash-free in all its dispensaries to make the sale of cannabis far more convenient for its public.
Recently, officials of the state made a statement that starting October 1, all medical marijuana dispensaries would go cash-free.
While the sale of medical cannabis is legal in the state of Hawaii, federal authorities still consider it to be a drug.
This has made things difficult for various institutions like banks and credit unions.
Despite being one of the first places to legalize the sale of cannabis, the state has run into a number of issues trying to manage funding for the medical marijuana program.
The legalization process had run into some interference on both the state and federal level.
But luckily two big companies that deal in medical cannabis have announced their plans to create a solid financial structure to raise the standard of the program to new heights.
Traditional Finance and Its Problems
States that have medical cannabis programs all suffer from the same issue due to the fact that marijuana is still considered to be a drug by a large part of the population at the federal level.
Traditional banking practices make it hard for a state to get their marijuana products off the ground.
Due to the misunderstood nature of cannabis, banks which are federally insured are unable to make accounts for companies that manufacture and sell marijuana.
Hawaii, in particular, faced more issues because it is so far away from the rest of the states that have legalized the drug.
In fact, until 2015, patients in Hawaii were actually expected to make their own cannabis to keep the costs low for the program.
But as the program grew, it became harder to get finances for maintaining and growing their business.
The need to go cashless is important for Hawaii, as it improves not only convenience but also the safety for the customers that consume cannabis.
Moreover, it also creates a very smooth transaction process for dispensaries.
How the Problem was Solved in Hawaii
According to the recent statement made by the state officials, a leading banking program and CanPay, a debit payment program, will be merging to create a singular solution for all the troubles faced by the medical marijuana program in Hawaii.
Dispensaries in Hawaii will be setting up their accounts with a credit union company named Safe Harbor Private Banking.
It is indeed a momentous moment in history as politicians, banks and cannabis companies came together to build the program up through a cash-free strategy.
This will create a reliable, safe and solid payment structure for the dispensaries as they work to keep their customers satisfied.
How the Cash-Free Approach Can Help
By eliminating cash from the transaction process, businesses that manufacture and sell medical cannabis can now have a transparent and secure way to operate.
Credit and debit cards allow them to maintain a history of their funds, which in turn will give them the freedom to keep proper records of every transaction.
They will no longer have to fear proving whether their sales and distribution were legitimate or not.
Customers can now download the CanPay app on their phone and use it for their transactions.
The app will let users link their accounts in a matter of minutes and provide them with a QR code they can use to buy medical cannabis.
This also allows for more secure transactions as customers don't need to carry money while going to the dispensaries.
Depending on the locality, it might be dangerous to carry more than $20 while going to the store.
CanPay has successfully been utilized in more than six states so far, including California.
If the customer doesn't own a smartphone, he/she can still perform cashless transactions through tablets placed in the dispensaries.
However, if people want to pay in cash they won't be denied any business; but the dispensaries will try their best to encourage cash-free transactions.
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