Hawaii Introduces Cashless Payment System for Cannabis

During a time when many cannabis businesses are relying on a cash-only system to avoid hassles, Hawaii is making a revolutionary move by introducing a cashless payment system for medical cannabis.

According to an official press release from David Ige, Hawaii’s governor, the state has developed a debit-based payment system for cannabis purchases. While some legal businesses in other states have found banks that are willing to work with them, this makes Hawaii the first state to officially develop a system that erases the need for cash exchange altogether.

Safe Harbor Private Banking, a Colorado-based banking company, is providing temporary services for banking in Hawaii through CanPay, which is a debit mobile app that will process all sales transactions. The state’s eight existing dispensaries will all be cash-only by October 1.

Much like other states, Hawaii wasn’t having any luck with financial services because cannabis is still federally illegal. This new solution will help them get around the middleman so that they can directly accept cash.

“This solution for the dispensaries to conduct banking services in an entirely cashless method would directly address many concerns we have and problems encountered by the dispensaries,” said Iris Ikeda, Hawaii Financial Institutions Commissioner, according to the press release. “This will establish a safe environment for medical cannabis-using patients and businesses to operate. It is our hope that a Hawaii-based financial institution opens accounts in the future. For now, we are appreciative of the mainland credit union for stepping in.”

Cashless sales allow business owners to pay employees through direct deposit, collect and pay taxes and also pay vendors. These payments will also be one hundred percent traceable, as they will all be recorded.

This is a major step for Hawaii, one of the most recent states to begin implementing a dispensary program. If this proves a success, it’s only a matter of time before other states will follow suit as well.