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CanPay Launches Prepay E-Commerce Solution ‘RemotePay’ for Cannabis Industry

Mar 16, 2024


Key Takeaways

  • CanPay introduces RemotePay, allowing for online prepayment of cannabis purchases.
  • RemotePay operates through the ACH network, offering a legitimate payment solution without needing credit or debit cards.
  • The new service allows merchants to adjust transaction amounts post-sale, addressing the industry's unique challenges.
  • RemotePay is now available across multiple e-commerce platforms, with over 1,100 dispensaries in more than 30 states participating.

Improving Cannabis E-Commerce with RemotePay

CanPay announced in a news release the launch of RemotePay as a cannabis e-commerce payment solutions, aimed at bringing the cannabis industry closer to the traditional retail experience.

CanPay has expanded its services to include prepayment options for cannabis consumers. This move streamlines the purchasing process and addresses the industry's payment challenges by utilizing the Automated Clearing House (ACH) network for secure transactions.

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In the release, Dustin Eide, CEO of CanPay, said RemotePay is a critical step towards aligning the cannabis industry with standard retail practices and enhancing the overall consumer experience.

"Somewhere between thirty and seventy percent of cannabis sales made online are modified post-sale," Eide said in the release. "CanPay's RemotePay is unique in the cannabis industry in that it allows merchants to adjust the price to the correct number – either higher or lower – after the sale.

"It's a big deal for merchants to know they'll be able to keep proper accounting and do right by their customers."

A Game-Changer for Merchants and Consumers

One of RemotePay's standout features is its flexibility for merchants to adjust transaction amounts after the sale. This capability is crucial in the cannabis industry, where changes in local taxes, discounts, and product selections are standard.

RemotePay eliminates the need for order cancellations and modifications, providing a smoother transaction process for merchants and consumers.

The release noted that FLUENT, a medical marijuana producer and dispensary, has already integrated RemotePay through its partnership with I Heart Jane, an e-commerce platform.

ALSO READ: Cannabis Payments Platform CanPay Exceeds Half a Billion Dollars in Retail Purchases

Vic Bindi, FLUENT's Chief Revenue Officer, praised RemotePay for offering a simple, secure, and convenient prepayment option. This option significantly enhances the patient experience by reducing wait times for in-store pickups.

"CanPay has provided our patients with more control and flexibility in the payment process than ever before," Bindi said in the release. "We're delighted to see the online cannabis purchasing experience becoming more streamlined, it is just like ordering any other product from one of the big online retailers."

Why We Care

With over 1,100 dispensaries across more than 30 states now participating, CanPay continues to expand its network, providing a reliable and compliant payment option for the cannabis industry.

CanPay's launch of RemotePay in the cannabis industry is a timely response to the sector's exponential growth and evolving consumer demands. Per a study published in Grand View Research, the U.S. cannabis market, valued at $13.2 billion in 2022, is projected to expand at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030. This growth is driven by a positive shift in consumer attitudes towards cannabinoid-based products, increased legalization, and the entry of new companies into the market.

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For instance, the study noted that approximately 64% of U.S. adults were familiar with CBD and CBD products as of 2022. The medical segment accounted for the largest revenue share in the cannabis market due to the growing acceptance of cannabis for treating various chronic conditions.

RemotePay addresses critical challenges in the cannabis transaction process, offering solutions that align with the industry's trajectory toward normalization and integration into mainstream financial systems. The necessity for such innovations is backed by the increasing consumer base, with recreational marijuana emerging as a leading application sector driven by the global trend toward legalization and decriminalization.

North America dominates the cannabis market, attributed to widespread use and the legalization of marijuana and marijuana-infused products, with significant growth expected in the medical marijuana segment. This regional dominance presents a ripe opportunity for services like RemotePay to facilitate transactions in a sector where traditional banking and payment systems have been reluctant to engage due to regulatory concerns.