Columbia Care Launches First Credit Card for the Cannabis Industry
Cannabis is now legal for medical use in 33 states and for recreational use in 10 states. However, the use and distribution of marijuana remains illegal at the federal level. Major credit card issuers like Mastercard and Visa are hesitant about entering the cannabis industry until federal laws change.
As a result, many dispensaries are unable to process credit card payments for their products. Columbia Care, a multi-state operator for medical marijuana, is launching the first credit card for the cannabis industry.
The Columbia National Credit Card was piloted in New York last year. Consumers who used the CNC Card had an 18% increase in basket size for in-store purchases. In other words, being able to pay with a credit card seemed to free consumers to buy more products at one time. It also increased the number of repeat visits and automatic fulfillment orders.
The card comes with no annual fee and “no fees or interest if paid on time.” Cardholders receive access to exclusive offers, including information about upcoming product launches.
The credit card, already available in New York, will soon be obtainable in Delaware and Pennsylvania. Later this month, the program will expand to Illinois and Arizona. The card will be accepted at all Columbia Care locations by the end of the year. The CNC Card will not be accepted at other dispensaries at this time, but “the company is evaluating opportunities through targeted partnerships for broader market adoption.”