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SuperNet partners with banks to launch cannabis credit cards for dispensaries.
If you live in the United States, chances are you know that most consumer cannabis transactions are done in cash. This is because the United States still has cannabis listed as a Title IV federally illegal drug, meaning that banks are unwilling and unable to offer their services at cannabis dispensaries.
Because of this, dispensaries are left to manage and protect large sums of cash, leaving them without any resources to offer modern payment methods like credit cards and debit transactions to the customer.
One company has a solution to end the era of cash payments at American dispensaries. SuperNet will issue and process credit cards that will work in cannabis dispensaries. We should expect to see the service launch this month, and the SuperNet credit card is already listed as an accepted payment option at 100 California retail cannabis dispensaries.
CEO Michael W.K. Tsang told TechCrunch that this is a “real credit card,” and the only difference is that the card will have a SuperNet logo instead of VISA or MasterCard. He says we can spend the card anywhere SuperNet is accepted.
Now, consumers can quit those ATM cash transactions and pay using a plastic credit card or the NFC app. Retailers can also reduce the amount of money on-site and collect data regarding their customers that no longer make cash transactions. Additionally, the SuperNet credit card has a loyalty program.
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Tsang explained that SuperNet’s platform was created for the complex world of cannabis thanks to the unnecessary regulations under government law. Because regulators want to see fewer cash deposits and more electronic payments, SuperNet felt compelled to bring that to the masses.
Tsang explained that the beauty of the SuperNet credit card is that the electronic money is tracked from the point of purchase, meaning it’s traceable and allows the company to know where the money comes from.
The main concern for regulators is money laundering, and because the cannabis industry is mostly in cash, this makes for a breeding ground for this type of activity. Furthermore, cash management is seen as one of the most expensive aspects of operating a cannabis business.
There are far too many examples of dispensaries that hire paramilitary security, store loads of cash in plastic totes, and hire staff to count these wads of cash. The addition of SuperNet’s credit card would reduce these processes and hopefully help the industry become less centered around cash.
The SuperNet credit card will have users apply, and the company will issue a card depending on regular credit factors. Cardholders will pay their balance online, and the NFC app allows for contactless smartphone transactions.