cannabis is now legal in a number of US states, but since it’s not federally legal, this “legal” status only does so much for cannabis companies. Although pharmacies in many states can legally sell cannabis products, they do not have access to the same banking facilities as other retail outlets.
As a cannabis trade technology platform, Oregon-based startup Dutchie is aware of the complexity of the problem it is trying to tackle. “We’re honestly kind of in the stone age when it comes to payments and cannabis,” co-founder and chief product officer Zach Lipson told Marketingwithanoy.
“It really forces the industry to rely on cash,” he said, noting that 90% of all pharmacy transactions are handled in cash. This figure may be a little high or somewhat outdated, as it comes from a 2020 report by research firm Aite Group, prepared for Emerging Markets Coalition (EMC), a cannabis financial services advocacy group. But the point remains: cashless transactions are often not an option for cannabis companies.
Zach and his co-founder (who is also his brother and the company’s CEO), Ross Lipson, want to solve that problem with Dutchie Pay, a payment solution designed for the legal cannabis market in the US.
How it works
If you’re buying legal cannabis for medical or recreational purposes, you may be able to place an order on your pharmacy’s website, but you’ll still have to pay cash on delivery or collection. This is where Dutchie Pay comes in.
Dutchie Pay’s name is reminiscent of Apple Pay, and that’s no coincidence – Dutchie also has ambitions to be a one-click payment system.