A company that partners with banks to provide financial services to the cannabis industry has expanded its business to offer consumers and retailers a way to make a cannabis-related transactions without having to use cash.
The new merchant processing product, created by Dama Financial, is called Paytender. The service allows customers to make a cannabis transaction through using their phone. And it allows merchants to take cashless payments and get same-day settlement on accounts that are managed by Dama Financial.
Paytender is a big step forward for cannabis businesses that want to reduce use of cash and increase financial security and safety.
Who Is Dama Financial?
Dama Financial manages the “first compliant banking option” for cannabis businesses, giving those businesses access to transparent and secure banking services. As explained on the company site, Dama Financial provides access to secure online and mobile-friendly banking services for cannabis-related businesses by partnering with banks. The company, as an agent of these financial institutions, administers these services.
The company was created by veterans of the banking and payment industries. Dama Financial and the company’s banking partners “help cash-intensive businesses reduce financial and safety risk, and run their businesses more efficiently.”
Dama Financial also has assembled a network of referral partners that supply accounting, taxes, payroll, human resources support and insurance services to participants the cannabis industry.
How Paytender Works
Paytender supports both customers and dispensaries in making cannabis purchases easier. It provides a cashless payment solution that allows dispensaries to accept payments in-store, online or upon delivery.
Using Paytender, customers can either link to their bank account (there is no fee charged) or they can use a debit card as a funding source. Using Paytender takes just four steps.
- Sign up. Downloading Paytender to your phone is free and fast, requiring only name, email, phone number and a password.
- Finding source. You can use an existing bank account as your funding source or use a debit card to fund your Paytender account immediately.
- Pay for your purchase. At checkout, once you’ve checked to make sure you have adequate funding in your account, call up your QR code and show it to the retailer, who will scan it. Confirm the amount on the retailer’s device and click “accept.” The transaction is recorded in your Paytender account.
That makes buying cannabis products much more convenient. And for merchants, this solves an issue that has plagued the cannabis industry.
The Benefits of Paytender For Merchants
Because marijuana remains an illegal drug at the federal level, most banks still will not extend financial services to cannabis-related businesses. This has left cannabis retailers in a situation where they operate primarily as a cash-only business.
That creates a problem both in financial record-keeping and in security. Cash comes with risks, including theft and loss. The Paytender system is a solution for this situation.
Paytender also gives dispensary customers the kind of purchasing experience they have come to expect and makes the pool of potential customers larger, as many people simply never pay with cash.
Dama Financial provides retailers an expert implementation team that integrates their existing Point of Sale (POS) system with Paytender. Dama Financial also offers access to banking and financial services, which include premier business accounts and cash-to-tax accounts.
The Paytender system is an important development. Dana Financial has created a way to conduct customer-friendly, cash-free cannabis transactions. That’s a big leap forward for the cannabis industry.
Dama Financial is an agent of its partnering financial institutions and licensed money transmitters. Customers’ funds will be deposited into a custodial account maintained for the benefit of account holders at one or more FDIC-insured institutions. Fees, terms and conditions apply to depositing funds into and using an Account. Account Terms and Conditions and Fee Schedule are available upon registration to access the online application.